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SETTING AND MAXIMIZING PRICE ON YOUR
CONSULTING SERVICES
PANELISTS:
DAN KAMDAR
ILENE BUTKA
LARRY NAGEL
JIM BOYD
MY BACKGROUND
Dan Kamdar is a president of Affordable Engineering Services. The company is a
multi-discipline firm that specializes in Test Engineering, Reliability, Logistics and
Quality for Aerospace and Defense applications.
Dan has MSEE and MBA degrees and worked as a Senior Engineering Manager
at Boeing for 25 Years.
ANALYSIS OF FEE FOR ALL CONSULTANTS
The table shows the equivalent hourly fees charged by all consultants.
Engineering
experience
Minimum
Maximum
Median
1 to 10 years
$20/hr
$175/hr
$90/hr
11 to 20 years
$40/hr
$320/hr
$100/hr
21 to 30 years
$25/hr
$2000/hr
$110/hr
31 to 40 years
$31/hr
$1000/hr
$120/hr
Over 40 years
$45/hr
$468/hr
$105/hr
The following table shows the annual earnings of these consultants.
Engineering
experience
Minimum
Maximum
Median
1 to 10 years
$3,700
$1,500,000
$89,000
11 to 20 years
$1,500
$1,050,000
$100,000
21 to 30 years
$1,000
$1,200,000
$100,000
31 to 40 years
$7,348
$1,000,000
$100,000
Over 40 years
$2,009
$415,500
$75,000
WHAT PRICE SHOULD YOU CHARGE?
DATA SOURCES:
(1) ALLIANCE OF IEEE CONSULTANTS NETWORK – JANUARY 2003
SURVEY
(2) PROFESSIONAL AND TECHNICAL CONSULTANTS ASSOCIATION
(PATCA) – 1999 SURVEY
SUMMARY:
(1) TYPICAL CONSULTANT HAS A BS (27%), MS (51%) OR A PHD (20%)
DEGREE.
(2) HOURLY RATE RANGE FROM $35 TO $250 AN HOUR. AVERAGE RATE IS
$98 AN HOUR. CONTRACT ENGINEERS (JOB SHOP) EARN BETWEEN $50
AND $60.
(3) 80% BILL AS TIME & MATERIAL; 20 % AS A FIRM FIXED PRICE
CONTRACT.
(4) 71% WORK FULL TIME AS A CONSULTANT. BALANCE WORK PART TIME
AS A CONSULTANT.
(5) 89% OF THE CONSULTANTS HAVE OFFICE IN THE HOME.
(6) 42% CARRY GENERAL LIABILITY INSURANCE. 8% CARRY
PROFESSIONAL LIABILITY.
AGE OF CONSULTANT
HOW LONG AS A CONSULTANT
HOURLY RATE
CONSULTING INCOME
SOURCES OF CONSULTING WORK