I disagree.  I charge only onsite time.  If  I am doing something like a customized training, there might be development expenses, but I would be moderate in billing, possibly at a lower rate.  I don't charge travel days because the client is paying all expenses.  I see consulting as one way of giving back to the field as well as a form of self development and I try to be reasonable.  And, of course, price is a point of competition.  It is sort of like my music.  I don't charge for the performance, but rather for lugging, setting up and tearing down my gear.  I work because it is fun and hitting the client for every second doesn't seem right.  Call me me naive, I don't care as long as you call.

Spanky

Mike McCallister, Ph.D.
Grant Street Services, LLC
7821 N. Thames Drive
Bloomington, IN 47408
812.219.7473

On Jun 9, 2012, at 1:11 AM, "Gregory K. Schmidt" <xxxxxx@VERIZON.NET> wrote:

> 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
> ======================================================================

======================================================================
 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
======================================================================