How to price your consulting services for maximum profit

We’re not here to tell you how much to charge as a consultant. There are too many factors like industry, experience, and scope for us to publish one rate card for everybody. 

But what we can advise on is how to structure your pricing to balance what clients are willing to pay with your value as an expert and your years of experience. 

What makes us qualified? We’ve helped hundreds of consultants like you with their bookkeeping, accounting, and tax needs, so we know quite a bit about the financial side of running a consulting business. We’ve also seen firsthand how pricing decisions impact a consultancy’s revenue both positively and negatively. 

Below are five steps to consider when structuring your consulting fees.

Choose the right pricing structure in 5 steps

1. Consider your niche and expertise

Your industry, expertise, and experience all shape how much you can charge. Our data shows that specialists like finance or tech consultants tend to charge more than generalists or nonprofit consultants because there are “riches in the niches” (depending on how you pronounce that). 

Your most recent role matters, too. Senior, management, software, systems, and technology consultants are among the highest paid, according to Indeed. And the more you can claim association to large consultancies like your past employer, the more you can charge similar fees.

When creating your pricing strategy, consider all of this as a story you can tell in just a few sentences—your elevator pitch. The stronger the logical connection between what you deliver and what other big companies charge, the less pushback you’ll receive.

2. Spy on competitors

Check what other consultants charge to get a sense of market expectations. What did your previous employer charge for similar projects? Even if you don’t charge that at first, it’s a useful benchmark.

Next, look up similar consultants’ rates on their websites or check review sites like Clutch. If you search for “marketing operations consulting” there, you’ll find hourly rates from $50 to $300+ and minimum project sizes ranging from $1,000 to $25,000+. Filter for businesses similar to yours. You can also browse subreddits like r/consulting and r/pricing. If you don’t find what you need on those forums, be the one to ask—others may be grateful.

Pro tip: Your competition isn’t just other consultants, it’s the client’s budget and “no decision.” If the buyer isn’t convinced of your value, they might skip hiring altogether or spend their money on new software. Make it clear why working with you is better. Maybe your unique insights and credibility help them internally.

3. Research your client

“Price the client, not the job,” advises Blair Enns, Author of The Win Without Pitching Manifesto. In other words, it’s about the client—who they are and their resources—not just the work they do. 

If you’re working with a high-profile client, you’re likely to charge higher than you would a smaller company. That’s what happened with a consultancy firm we know. They usually charge about $15,000 for a particular strategy report. However, when one of the world’s largest software companies approached them, the director was clever and instead of offering a price, asked for the company’s budget. That company apologized for “only being able to allocate $40,000 to the report.” Needless to say, the consultants charged that price, and the client felt they got a deal. 

The lesson? Have stock rates, but personalize quotes according to the buyer’s capacity and willingness to pay. 

4. Combine different pricing models

Don’t limit yourself to a single pricing model, like hourly rates. Instead, mix and match strategies to suit different client needs and generate more income.

For example, you might offer a retainer model for ongoing, long-term support such as $5,000 per month, as IT and PR consultants often do. Then also charge a per-project rate for specific deliverables, such as $20,000 for a market entry strategy.

McKinsey used a similar hybrid approach in a contract they sent to the Federal Reserve Bank of New York for a project. They had a fixed fee but also offered several team tiers with different numbers of associates for different prices. This allows them to tease out the client’s willingness to spend without discounting. 

Pro tip: Turn your expertise into packaged offerings like courses, templates, or workshops for clients. This opens up another revenue stream for you and allows clients to perform certain tasks on their own.

5. Test and tweak your pricing strategy

The best way to test your pricing is through live discovery calls, not emails. This way, you can gauge real-time reactions. On these calls, you’ll likely get one of three responses: a gasp, silence, or a “sounds good.” These often mean respectively, that they can’t afford you, have concerns, or can’t afford you and are embarrassed about it. 

In these cases, ask what they’d need to know to feel confident about moving forward. If they say “nothing” and aren’t asking about next steps, such as to read the agreement, it means they have lingering concerns, which could include price. 

Kindly, continue asking. Use hypothetical situations to understand and resolve that concern. “If I were to X, would it be a no-brainer?”

Track your “close rates,” or the number of qualified conversations that turn into a paying client. If clients frequently push back or ask for discounts, you may need to better communicate your value. But don’t lead with discounts—it devalues your work. Besides, clients are more likely to respect consultants with a firm process, and the client-consultant relationship is all about them believing you know more.

If the client asks for a discount, politely tell them, “I’m unable to offer a discount because it might undercut the quality, but if the cost is an issue, I can either adjust the scope of work or put it on hold for now. Either way, no pressure.” Often, the client is happy to proceed at that price.

For more on handling pricing conversations, You Can’t Teach a Kid to Ride a Bike at a Seminar by David Sandler is a must-read, as is Never Split the Difference by Chris Voss.

Still need help? Talk to a CFO

If you’re struggling to create the right pricing structure or feel like your current one isn’t delivering results, consider working with a pricing strategy consultant or fractional CFO on the Pilot team. They can conduct market research, analyze your industry, and develop pricing models that align your fees with your value and client expectations. With their expertise, you’ll have a tailored strategy that helps you stay competitive, attract the right clients, and remain profitable.

Need help managing your books? We can help so you can focus on getting clients and running your business. 

Have other questions? We’d love to hear from you at hithere@pilot.com.