Key approaches - High Level Summary Use the 1000 invoiced hours rule – To reach a desire target income, assume you can invoice 1000 out of the available 2000 working hours there are in a year. Then, your Rate per hour = desired Income per year / 1000 Hours Invoiced per year (Minimum Income Strategy) Consider the dollar value of your services compared to those of an employee in your skills area. Should include an estimate of company overhead (Alternative pricing) Ask other Consultants selling similar services what they charge. (Market Research Strategy) Decide to price below, at, or above the market, (a Perception Strategy) Try an amount and see how it is received by clients (Market Testing Strategy) Check out your price with "job shops" (assume a 40% discount for them) (A competitive Strategy) Consider if you will plan to do projects based on a short, medium or long term basis (Strategy based upon different offerings to potential clients) Consider offering Fixed Price Contracts
