Laws of Finance recently posted that his time is worth $150/hour. That is how much the law firm he is interning at is charging for his services. Working in a professional services firm as a consultant, I can very easily see how much the client is being charged for my services. I also handle the fees, expenses, and billing of our project. I think this information may be somewhat sensitive, so I will give a ballpark figure. My time is billed to the client at a rate that is slightly lower, but in the same range as that of Laws of Finance. However, when I get promoted (and a raise), my rate should be slightly higher than the billing rate of Laws of Finance, but in a similar range. Both my current rate and my new rate will be between $100/hr and $200/hr.
Now imagine if I were an independent contractor. Then when if I billed the client $150/hr that is what I really would be making!
Of course in consulting, we actually work a lot more hours than we bill. So our rates are not as outrageous as they seem. While my rate is similar to Laws of Finance, I know when I bill 9 hours/day, I really work about 11 hours/day.
Friday, July 21, 2006
What my time is worth
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3 comments:
I have always wondered about the "I know it is expensive, but we actually work more than we bill" explanation. Is there any reason why lawyers and consultants do this? Can you share some more insight on this?
Calgirl, interesting post. Thanks for your blog reads! Matador, I'm a consultant in technology and the hourly varies. Typically, employees' salaries don't include benefits while consultants have to pay their own benefits and administrative time such as billing. Companies roughly add 30% to an employee's salary for benefits.
Money Matador - I don't know why we work more than we bill. I think it might just be standard practice. We can't lower our prices, but we can give companies a better deal by working harder.
Kyle - Thanks for the comment. I agree that you need to think about the cost of benefits when looking at the hourly rate.
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