It is best to project the costs semiannually, including increased executive salaries and other projected costs. A cost lid must always be used in preparing a bid or quoting a job. Include shipping, handling or storage in the total material cost. Figuring Costs And Profits For A Consultant Service Pricing services, where your own labor or expertise is used, is different from pricing services that use materials and other labor. For instance, most consultants price their services by the hour.
Senior consultants charge more for their time than do their less experienced counterparts.
Remember to charge for an adequate number of hours. Travel time is usually listed as an extra charge. It is unlikely that all of your time will be billed to clients. Therefore, hourly or contract fees must be set high enough to cover expenses during slow periods. That is why one-half of the total normal working hours for a given year are used in figuring overhead rates.