Sorry, Derek, but I need to comment on your math.... I've been there and, although you have the right idea, your missing a bunch of the numbers. First off, I don't know any consultant worth their salt who doesn't chunk at least $10K (more like 20K - 30K) into supplies, software, hardware, test beds, etc. You must also consider that you aren't billable 100% of the time. Many times, you average somewhere around 50-60% billable time (and don't forget, even when you are billable, you have a bunch of time doing office chores, training, etc, that you don't get 'paid' for). Vacation is on your own, as are sick days, holidays, etc. I could run on about corporate and social security taxes (you are going to establish a corporation to protect your assets, right?), administrative costs, etc., but I hope you understand that getting $100/hr for sporadic consulting isn't robbery, just smart business. If you are on a long term job, then I think the rates can go down some (towards $50/hr). - Alan ----- Original Message ----- From: "Derek A. Neighbors" To: Sent: Tuesday, March 05, 2002 7:07 AM Subject: Re: Consulting Fees > Just in case no one has done the math > > 60,000 / 2080 (hours) = 28.85 > > Now of course there are things like a normal employers benefits (and > their tax contribution to factor in) So say you figure in 10,000 for > benefits and lump 10% for tax contribution and you are at 77,000 a year > add another 10% for office supplies space etc... and you are at 84,000. > > The other way is when you hire someone you figure 30% of salary will be > needed so if the salary is 60,000 72,000 would be the outcome so the > above of 84,000 is pretty high. > > 84,000 / 2080 (hours) = 40.38 > > So I am curious to those that give consultants a bad name buy wanting > 100 plus an hour. Do you really think that 60,000 is paltry salary, or > do you expect companies to burden your time without work? > > Based on these numbers anything more than 80 an hour is HIGHWAY robbery. > As you would only be working half a year to earn 60,000 or if working a > full year making 120,000 with full benefits etc included in the > calculation. I just ask that you re-evaluate bagging on 'the microsoft > tax' if you are charging more than 80 an hour and ask are you charging > 'the consultant tax'? > > ;)