Consulting Fees

[chefrod]

I just got a phone call out of the blue from a huge catering operation ( who shall remain nameless ), asking me if i would come in and do some consulting work for them. It seems that they are looking for some input as to how to improve their buffet presentation and service. I am very flattered to be asked but have no clue as to what i should be charging. I have never done anything like this. Should i charge them the same rate as my salary at my day job or what? I would appreciate any help anyone could give me with this.

[mark1]

I do and have done lots of consulting, not in your field, but as I'm sure some sage person must have said, "consulting is consulting"...
The three basic ways this works is an hourly fee, a one-time consultancy job and a long-term consultancy contract.
Hourly fees should also have a minimum of hours attached and LOL-don't charge too little or they'll think they aren't getting their money's worth!

The one-time job has a total fee you must estimate and the usual is 50% in front & the balance on completion.
The long-term contract is usually done as a monthly fee and you're "on call" to pontificate on any problems/questions on which the contractor will call on your expertise.
Good luck.

[LisasGourmet]

From my days as an IT consultant --- much like a lawyer --- the customer is paying for your knowledge.

I always charged a bit more for providing verbal consultation than the actual "work" involved only because they were getting my expertise and because it usually took time away from the contracts that paid the bills. I know it doesn't sound right, but, charging 10-20% more than the hourly rate usually turned them into contractual customers anyway!

They felt like they were getting a discount for me to do the actual work.

Just my two cents!

Lisa

[Silverfox]

My consulting fee is very simple and has abso;utely NOTHING to do with hourly rates or paychecks.

When someone wants to "buy my knowledge" that was acquired over, probably, more years than they have been alive, they "pay", and not "by the hour"!

My "fee" starts at something above $1,000/day, with a two day minimum (plus expenses), depending on how I happen to feel.

Now, you want me to "cook" or "design a menu" or some other "task", it is a different story and we'll discuss the price.

But you want to "mine my training, education, knowledge, and "street smarts"", you're gonna pay for it.

[Derek Cooks]

In the 80's I charged $500 @ day plus expenses. I'm not so cheap any more...

[chefrod]

Thank you all for your comments. I would have sold myself short. I want to do a bang up job of this and maybe it will lead to a serious sideline for me or maybe even full time.

[jonesg]

If you are just going to go talk to them and look over their operation thats one way. But it limits what you can charge.

A better way is to watch them through the complete process of first selling the client ,organizing, prep , setting up the job and final execution. That allows you to sell a chunk of time rather than hrs. 3 days minimum, the selling would be for any job, the organizing for any but you need to observe how they doing what they are not happy with.

You need to go out on a job with them (if its offsite).

Sell them the idea that you can teach them a "system" that you learned through many yrs of (yadyadya), not just clever advise such as "just change this to that" and not a nunber of hrs ata certain rate, you want to sell a package with a final formal report. Otherwise they'll be looking to pick your brains on the cheap.

I would price it at $3K to include some free follow up.

I know they could call in a heavy hitter in the catering consulting field for $2K a day plus expenses with one phone call. Thats what the mkt will bear.