First, my time costs when I travel.  Maybe not at full rate, but I charge.  There is an opportunity cost.

Second, you assume that I work 40 hrs a week billable.  Not always the case.

Next, the administration, marketing, networking, email time is taken at night or on weekends, or if there is no billable time during normal working hours.

I have never worked a 40 hour week as a consultant.  Jobs are often capped or fixed price (rate sheets).

Costs of insurance (liability ins. can be a killer), health, auto, memberships,equipment, software, supplies, rents, fed, state, city taxes, licenses, rents, legal and accounting fees.........  everyone has their hands in my pocket.

Profit?  The charge rate is so diluted with hours worked that I'll earn about what I did 15-20 yrs ago when I worked for the state.  That would be south of next to nothing.

"J. Michael Slocum" <xxxxxx@GMAIL.COM> wrote:

>CONSULTANT "COSTS" TO OPERATE
>
>
>•   Take the $1600/Wk and the 40hrs/Wk
>
>•   Deduct 1.5 hrs for travelling per day between clients etc.
>
>•   = 7.5 hrs/Wk
>
>•   Deduct 1 hr per day for admin and paperwork
>
>•   = 5hrs/Wk
>
>•   Deduct 10 hrs/Wk for marketing, networking etc.
>
>•   = a total of 22.5 hours/Wk
>
>•   Thus 40-22.5=17.5
>
>•   Lets assume that a consultant has the ability to work 80% of the
>available hours every week of the year……………
>
>•        This would the equate to 14 hrs/Wk
>
>•        14 x 40 = $560/wk or  $2426/Mth
>
>•        From your current earnings of $6900 to $2426 per month
>
>•        Reality –$113.75/hr CHARGED TO CLIENT to equal an income of
>$6900.00/month
>
>GROSS INCOME TO CONSULTANT IS $82,800
>
>*NET IS LESS THAN $70k PER YEAR* AFTER SELF-EMPLOYMENT TAXES AND *NO COSTS
>OF BUSINESS HAVE BEEN RECOVERED*
>
>On Fri, Jun 8, 2012 at 8:54 PM, Gregory K. Schmidt <xxxxxx@verizon.net>wrote:
>
>> A consultant fee is no different than salaries in concept.  A consultant
>> provides intellectual services specialized such that your institution would
>> not normally retain on full time payroll.  Ask him if his paycheck is
>> profit to him.
>>
>> Gloria Greene <xxxxxx@UAH.EDU> wrote:
>>
>> >I have a dilemma and need some help/clarification with a situation.
>> >
>> >
>> >
>> >My CFO believes that a consultant’s fee is “profit.”  I disagree with him.
>> >I believe that a fee for services is not a profit, and should therefore
>> not
>> >be classified as profit.  His position is a consultant and vendor are one
>> >in the same and therefore any money made is “a profit.”
>> >
>> >
>> >
>> >I told him that comparing a vendor to a consultant are the same as
>> >comparing apples and oranges.  They are not the same.  The consultant
>> >provides a services the vendor provides a commodity (item, materials,
>> >etc).  These are not the same.
>> >
>> >
>> >
>> >Can someone help me!  If I am wrong, then please let me know that as well.
>> >I view help as setting me straight and educating me.  If you can provide
>> me
>> >with any written guidance on this matter to further make my case that will
>> >be welcomed as well.
>> >
>> >
>> >
>> >I appreciate this group and its insight.
>> >
>> >
>> >
>> >Regards
>> >
>> >
>> >
>> >*Gloria Greene, MA, CRA*
>> >
>> >Director
>> >
>> >UAHuntsville, Office of Sponsored Programs
>> >
>> >SRA-Alabama Chapter, *Vice President-Elect*
>> >
>> >301 Sparkman Drive, VBRH E26
>> >
>> >Huntsville, AL  35899
>> >
>> >Voice: (256) 824-2657
>> >
>> >Fax: (256) 824-6677
>> >
>> >Email: xxxxxx@uah.edu
>> >
>> >
>> >
>> >*"The person who knows 'how' will always have a job. The person who knows
>> >'why' will always be his boss."   -- Diane Ravitch*
>> >
>> >
>> >
>> >*Please do not print this email unless necessary.*
>> >*Take Charge,* *Go GREEN!*
>> >
>> >[image: yep]
>> >
>> >
>> >======================================================================
>> > Instructions on how to use the RESADM-L Mailing List, including
>> > subscription information and a web-searchable archive, are available
>> > via our web site at http://www.healthresearch.org (click on the
>> > "LISTSERV" link in the upper right corner)
>> >
>> > A link directly to helpful tips:  http://tinyurl.com/resadm-l-help
>> >======================================================================
>>
>>
>> ======================================================================
>>  Instructions on how to use the RESADM-L Mailing List, including
>>  subscription information and a web-searchable archive, are available
>>  via our web site at http://www.healthresearch.org (click on the
>>  "LISTSERV" link in the upper right corner)
>>
>>  A link directly to helpful tips:  http://tinyurl.com/resadm-l-help
>> ======================================================================
>>
>
>
>======================================================================
> Instructions on how to use the RESADM-L Mailing List, including
> subscription information and a web-searchable archive, are available
> via our web site at http://www.healthresearch.org (click on the
> "LISTSERV" link in the upper right corner)
>
> A link directly to helpful tips:  http://tinyurl.com/resadm-l-help
>======================================================================

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.healthresearch.org (click on the
 "LISTSERV" link in the upper right corner)

 A link directly to helpful tips:  http://tinyurl.com/resadm-l-help
======================================================================