How to Determine Consulting Rates in Australia

How to Determine Consulting Rates in Australia
From strategy consultants to management consultants and more, Square has everything you need to know on consultancy rates in Australia.
by Kaitlin Keefer Dec 14, 2018 — 4 min read
How to Determine Consulting Rates in Australia

Below we’ll review what influences consulting rates in Australia, how to determine yours, and how to take payments once you’ve started working with clients.

What are consultation fees?

Your consultation fees should be based on the value of your work. A number of factors influence that, including the scope of your work, your experience, and the competitive landscape.

Scope

The type of consulting work you specialise in will affect your consulting fees, and there are two general buckets you can fall into:

Experience

How much experience you have in your industry influences how much to charge as a consultant. You want to research to make sure that you aren’t overvaluing or undervaluing your level of experience. Different industries have different rates for projects, so your area of expertise and the scope of the project will influence your pricing model and consulting fee agreement.

Competition

The competitive landscape and your physical location are the final components that will influence your consulting fees in Australia. While you don’t need to mirror your competition’s prices, it’s important to consider how much others are charging to remain competitive. Your general location will also play a part in your consulting rates — consultants living in coastal or urban cities often charge higher consulting fees. If you’re just starting your consulting business, you may be eligible for government support programs that provide assistance for individuals to set up and run their business.

What kind of fee structure should I use?

Consultants usually choose a pricing model or fee structure for their work to remain transparent. There are a few different structures that most consultants use:

While you may want to use the same fee structure across all clients, you don’t have too. The goals of a fee structure are to make sure that you are compensated fairly for your work and that your clients feel comfortable paying you for that work, so it’s okay to adjust structures based on client or by project. Just make sure that you are clear about your consultation fees before beginning any work.

How do I determine my consultation fees?

There are a lot of things to keep in mind when you create your consultant rate in Australia. It can be tricky to balance all of the factors we’ve outlined above, but there are a few steps you can follow to ensure an optimal pricing structure for you and your client.

Once you’ve put together a consulting fee agreement for one client, you should be able to easily adapt the fee and fee structure for new clients.

How do I take my client payments?

Once you’ve figured out what to charge for your consulting services, you should think about how you’ll take payments.

A contract allows consultants to adopt a professional face, set expectations with clients, and get paid in a timely manner. In a contract, you can lay out the scope of your work and describe consulting rates so all parties are satisfied throughout the course of a particular job. While you can write a contract on your own, there are also contract templates available for a nominal fee. Once you’ve prepared a customised template, you can attach it to invoices and send it off to your client for review.

Invoices are a popular payment option many consulting businesses use to charge their clients, and it can help you get paid faster for your services. With online invoicing software, you can send invoices via email and clients can pay via card online. Then, you can track all of your invoices and payments through that software. Square’s free invoice app allows you to create invoices, send estimates, and easily accept payments all in one app.

Kaitlin Keefer
Kaitlin Keefer is a content strategist at Square who has covered how businesses connect with their customers and ways they can leverage tools and data to become industry leaders.

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