How to Price Your Consulting Services Without Underselling Yourself

Stop Charging by the Hour

The biggest mistake new consultants make is pricing based on time. You are not selling hours - you are selling outcomes.

If you save a company one million pounds, does it matter whether it took you 10 hours or 100?

The Value-Based Pricing Framework

Step 1: Quantify the Problem

Ask your client: "What is this problem costing you?" Get a number. If they cannot give you one, help them calculate it.

Step 2: Price as a Fraction

Your fee should be 10-20% of the value you deliver. If you save them 500k, charging 50k is a no-brainer for them.

Step 3: Offer Packages, Not Hourly Rates

Create 3 tiers:

• Bronze: A focused diagnostic (your entry point)
• Silver: Diagnostic + implementation plan
• Gold: Full implementation with ongoing support

Common Pricing Mistakes

• Comparing to your salary: Your salary included holidays, pension, sick pay. Your day rate needs to be 2-3x your employed equivalent.
• Competing on price: If you are the cheapest, you attract the worst clients. Price signals quality.
• Not raising your prices: After every successful engagement, raise your rates by 10-15%.

The Confidence Factor

Pricing is ultimately about confidence. When you know your value, you can state your fee without flinching.

Know Your Worth First

Get your free Skill Cluster Analysis from CV2A. When you can see exactly what makes you valuable, pricing becomes so much easier.