Derek, Another person already commented on your math and all his points were valid. Additionally, I would like to add that I am unsure how you are able to only pay 10% for tax contribution. If you are billing $80,000 per year, you would be in the 28% (maybe even 33%) Federal tax bracket. That does not include AZ state tax (3-5%), and self employment tax of 15% (aka Social Secuiry). So at a mimimum, for a $80K yearly salary a LEAST a third of that goes to taxes and your left with $56K. Keep in mind these are only taxes and do not include all the other expenses of running a business. Just my thoughts :) Peter --- "Derek A. Neighbors" wrote: > 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'? > > ;) > > -Derek > > Steve Holmes wrote: > > >Gee, that sounds like the Borland phenomenom; remember when Borland > or > >Turbo C sold for $40? Then they jacked the price up to almost #300 > or $400 > >and sales went up! Personally, I don't think a product is better > just > >because it is priced higher. If everybody did that, free software > would > >never never make it. I realize providing a service is different > though. > > > >On Sat, 2 Mar 2002, George Toft wrote: > > > >>I knew a guy that was charging $35 per hour, and had so much work > >>he couldn't handle it. He raised his rate to $75 per hour and the > >>work tapered off almost to nothing. He raised it to $125 per hour > >>and was flooded with work again. > >> > >>He asked one client, whose bid he lost at the $75 rate: "Why did > >>you hire me at $125 instead of $75?" > >> > >>Their answer: "At $75 per hour, we did think you knew what you > >>were doing." > >> > >>George > >> > >> > >>Linux wrote: > >> > >>>Anyone who wants to pay $25.00 an hour to a consultant deserves > just what > >>>they get. > >>> > >>>I would charge no less than $65.00 an hour for the most basic of > things. > >>> > >>>If you have the skills to be a true consultant you deserve _OVER_ > $100.00 an > >>>hour. > >>> > >>>If anyone could do this stuff they wouldn't need you!. > >>> > >>>I think I'll just go sell cars........................ > >>> > >>>Keith > >>> > >>>Message: 11 > >>>Subject: Re: Consulting Fees > >>>From: Craig White > >>>To: plug-discuss@lists.plug.phoenix.az.us > >>>Date: 01 Mar 2002 09:21:00 -0700 > >>>Reply-To: plug-discuss@lists.plug.phoenix.az.us > >>> > >>>On Thu, 2002-02-28 at 14:30, Vaiod wrote: > >>> > >>>>What is the going rate for general IT consultation work. Duties > would > >>>>include the very basics and could include major work such as > >>>>installing/configuring new hardware/software systems. Just a > general > >>>>reasonable hourly rate is kind of what I am looking for. > >>>> > >>>---- > >>>I charge $70 per hour less prompt pay & volume discounts - I am > kept > >>>very busy. Seems to be a fair price - sometimes I feel guilty > charging > >>>that for simple stuff but I can make that same hourly at other > customers > >>>so I always have to bear that in mind. > >>> > >>>Craig > >>> > >>>--__--__-- > >>> > >>>________________________________________________ > >>>See http://PLUG.phoenix.az.us/navigator-mail.shtml if your mail > doesn't post to the list quickly and you use Netscape to write mail. > >>> > >>>PLUG-discuss mailing list - > PLUG-discuss@lists.plug.phoenix.az.us > >>>http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss > >>> > >>________________________________________________ > >>See http://PLUG.phoenix.az.us/navigator-mail.shtml if your mail > doesn't post to the list quickly and you use Netscape to write mail. > >> > >>PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > >>http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss > >> > > > >________________________________________________ > >See http://PLUG.phoenix.az.us/navigator-mail.shtml if your mail > doesn't post to the list quickly and you use Netscape to write mail. > > > >PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > >http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss > > > > > > > ________________________________________________ > See http://PLUG.phoenix.az.us/navigator-mail.shtml if your mail > doesn't post to the list quickly and you use Netscape to write mail. > > PLUG-discuss mailing list - PLUG-discuss@lists.plug.phoenix.az.us > http://lists.PLUG.phoenix.az.us/mailman/listinfo/plug-discuss __________________________________________________ Do You Yahoo!? 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