Great piece. As an individual consultant, what about a pricing strategy based on comparison to the annual compensation of a similar full time position? E.g. if I am delivering a technical strategy for a client which they would typically need to at least have an SVP on 200k/ year to do over one month, can I use that to justify around 20k. The client is getting the deliverable plus the benefit of not needing to take a person onto payroll.
In one sense, that could perfectly work. But the catch is you're always somewhat constrained by what competitors might charge. Even if you're several times better than them, you might have to consider what their next best alternative is and make that work.
Though it's worth nothing if you're comparing yourself to a full-time employee - you should charge a lot more because of the overheads of an employee etc..
Great piece. As an individual consultant, what about a pricing strategy based on comparison to the annual compensation of a similar full time position? E.g. if I am delivering a technical strategy for a client which they would typically need to at least have an SVP on 200k/ year to do over one month, can I use that to justify around 20k. The client is getting the deliverable plus the benefit of not needing to take a person onto payroll.
It's a tricky one.
In one sense, that could perfectly work. But the catch is you're always somewhat constrained by what competitors might charge. Even if you're several times better than them, you might have to consider what their next best alternative is and make that work.
Though it's worth nothing if you're comparing yourself to a full-time employee - you should charge a lot more because of the overheads of an employee etc..