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Re: Consultant Fees Gregory K. Schmidt 11 Jun 2012 18:30 EST

The fed allows for travel time to be charged at, I think, 75% per travel day.  I'll check later.  Typically I charge 50% travel time.  Plus expenses, of course.

Maggie Griscavage <xxxxxx@ALASKA.EDU> wrote:

>This exchange has been FABULOUS and very educational !  Thanks to all those
>who shared so candidly...
>
>Maggie
>
>
>
>On Sun, Jun 10, 2012 at 3:52 AM, Theresa Defino <xxxxxx@aol.com> wrote:
>
>> Consultants should and do bill for travel.
>>
>> Kind regards,
>> Theresa Defino
>> Editor
>> Report on Research Compliance
>> xxxxxx@aol.com
>> 301-738-3721
>> Sample issue: http://aiseducation.com/samplerrc.pdf
>>
>>
>> -----Original Message-----
>> From: J. Michael Slocum <xxxxxx@GMAIL.COM>
>> To: RESADM-L <xxxxxx@lists.healthresearch.org>
>> Sent: Sun, Jun 10, 2012 7:40 am
>> Subject: Re: [RESADM-L] Consultant Fees
>>
>>
>> Charge or don't for particular activities is simply a matter of adjusting
>> the rate and measuring stick. The person who doesn't charge for travel must
>> charge a higher per hour fee for the BILLED hours to recover the same
>> amount as one who charges for time traveling and on-site. One who charges
>> for prep can charge a lower rate for the "performance."  $50 per hour for
>> travel for 4 hours = another hour at $200 needed to make the same money.
>>
>>
>>  On Sun, Jun 10, 2012 at 7:09 AM, Mike McCallister <
>> xxxxxx@grantstreetservices.com> wrote:
>>
>>> 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]
>>> >>>>
>>> >>>>
>>> >>>>
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