How to price a consulting engagement

Price a consulting engagement on the value of the outcome to the client, not on the hours it takes you. Use a fixed price for defined work, a monthly retainer for ongoing guidance, and a day rate only when the scope truly cannot be predicted. Say the number plainly and then stop talking.

Why do consultants underprice?

Consultants underprice because they price from their own side of the table. They count their hours, add a margin and feel awkward about the total. The client, meanwhile, is not buying hours. They are buying a result: a system that works, a decision made, a problem gone.

When you price from the client's side, the number changes. A system that saves a business eight hours a week is worth far more than the twenty hours it took you to build.

What are the three pricing models?

There are three that work for consulting, and most businesses use two of them.

• Fixed price. One number for a defined piece of work. Best for anything with a clear start, finish and deliverable. A two day strategy intensive is a fixed price.
• Monthly retainer. A recurring fee for ongoing access, guidance or delivery. Best for relationships where the work continues and the client values having you available. A guided build over three months is a retainer.
• Day or hour rate. A rate for time. Best only when the scope is unknowable and the client accepts that. It caps your income at the hours you can work, so use it sparingly.

Notice which model is missing: pricing per task. It invites haggling, it punishes efficiency and it makes every engagement feel like a shopping list.

How do you set the number?

Start with the outcome. What is this worth to the client if it works? Then ask what a serious, senior provider would charge for it. Then ask what you need it to be for the work to be worth your full attention. The price sits where those three overlap, and it is usually higher than your first instinct.

A useful test: if a client says yes instantly without a pause, you were too low.

How do you present a price?

Say it plainly. "The Strategy Intensive is two thousand dollars." Then be quiet. Do not explain, discount or apologise in the same breath. Silence after a price is where confidence lives.

Put the price on your website. It filters out people who were never going to buy and signals to the right clients that you are established. Hidden prices attract price shoppers. Visible prices attract buyers.

What mistakes keep consultants underpaid?

• Quoting hourly because it feels safer
• Building a custom proposal for every enquiry instead of having three clear offers
• Discounting before anyone has asked
• Adding extras to justify the number instead of letting the outcome justify it
• Charging the same price for five years

Fix these and most consultants raise their income by a third without finding a single new client.

Should you ever discount?

Only in exchange for something. A lower price for a longer commitment, for a case study, for payment up front or for a referral is a trade, and trades are fine. A lower price because someone asked is a signal that your price was never real. If a prospect cannot afford the offer, point them to a smaller one rather than shrinking the big one.

How often should you raise prices?

At least once a year, and every time demand outruns capacity. The clearest signal is a full calendar: if you are booked out, the market is telling you the price is low. Raise it for new clients first, then for existing clients at renewal with two months' notice and a clear note about what they are getting. Most will stay. The few who leave were the ones paying least for the most attention.

What does a clear offer ladder look like?

Three offers, three prices, three levels of involvement. A short intensive for those who want a plan, a guided programme for those who want support, and a full build for those who want it done. That is exactly how the work with Kiran page is structured, and it is a model you can copy for your own business.