Consulting services industry in the United States

Though, if you need a high-level technical specialist, it’s better to work with IT consultants. They’re often more experienced and have in-depth tech expertise in specific areas. For example, fraud prevention by means of AI in the FinTech product. Some companies prefer working with software developers, others looking for professional IT consultants. Both of these options are fine, while you get a high-quality service that matches your requirement.

Don’t discount your ambitions as a consultant and business owner. You have a right to live comfortably and thrive financially, too. What rate do you need to set to cover your costs, make a profit, and live the life you want to live?

consulting rates by industry

Chances are that you’re not the first consultant your client has hired. Businesses are in the practice of regularly engaging contractors and consultants, so they’ll have some awareness of the going rates—and they’ll perceive your value based on where you fall within that range. This includes tangible qualities like the specific services you’re providing, your level of expertise, and any industry certifications or awards that verify that expertise. It also includes intangible qualities like your flexibility, adaptability to your client’s needs, responsiveness, and ability to meet deadlines.

Diversity consulting rates

Consultant get paid based on the results of the project. Also, it’s better to check their portfolio on their website or read reviews on Clutch or GoodFirms to be sure that you’ll get a good service. With communication tools becoming more advanced and recent developments like the metaverse, this trend will only accelerate in the future. Maybe one day, SteerCo meetings may even be hosted in a virtual boardroom attended by avatars of C-suite executives and senior consultants.

60.46% of consultants have not done a performance deal, but are open to the idea. Consultants who price their services based on value and ROI are 86% more likely to offer productized services. 80% of consultants are actively looking to increase their rate.

A cyber security consultant can charge between $225 to $300 an hour. Engineering consultants make an average of $75 to $125 per hour. In 2020, the top consulting firms in the United States by prestige rating were McKinsey & Company, followed by the Boston Consulting Group and Bain and Company. McKinsey & Company also was ranked as the best employer to work for. The Boston Consulting Group came second, followed by Bain & Company. This step can be tricky for new consultants, so this is where industry averages come in handy.

Marketing & Sales – $20

Productized consulting is when you take your service, strip it down to its essentials, and give it a fixed scope and price. A performance deal is where you are paid based on the performance of your work. It’s one of the best ways consultants get leverage and increase their earnings without spending more time working. Value-based pricing is a hot topic in the consulting world — and for good reason.

consulting rates by industry

Whether that be productized consulting, value-based pricing, or ROI-based pricing, charge a client using a method other than just your time. You’ll learn how much more revenue you can earn when you stop charging for your time and start charging what your clients really care about — the value you’re creating for their business. The consulting industry provides professional advice to organizations in a variety of specialized fields. In 2020, the global consulting market was estimated to be worth approximately 132 billion U.S. dollars.

Contact a professional near you to receive a personalized cost estimate for your project. With ‘digital transformation’ in vogue, consulting firms must possess capabilities in the trinity of strategy, technology, and implementation to thrive. The MBB firms, in particular, have recognized this, and have been aggressively building up their non-strategy practices over the past several years. On average, nonprofit consultants charge between $85 to $150 per hour.

Anything that comes up that’s out of scope will either be renegotiated or charged at your hourly rate. Once you’ve familiarized yourself with the going market rates, consider where you fall within those ranges. Do you have expertise on par with a specialist, with a few working software consulting rates years behind you? You may want to charge a lower rate until you’ve worked with more clients. If, on the other hand, you’ve been working for five or more years, and have a wealth of industry-specific experience and happy client testimonials, you can charge on the higher end.

Marketcircle Blog

After a pandemic-driven decline in 2020, the management consulting industry rebounded strongly in 2021 and is expected to continue its strong growth in 2022. While the business slowdown was just temporary, it seems that the pandemic had accelerated – and even created – several trends that will significantly change the industry landscape in the long run. Remember that consulting rates shouldn’t be a decision you make on the fly.

consulting rates by industry

For companies just getting started, a business plan is the perfect place to begin. With professional assistance and consulting, new business owners can map out their success strategy with a seasoned pro who will help them determine their goals and how to accomplish them. Business plans can be created to target different goals, such as gaining investment funding, preparing for loans or branching out into a new market or specialty.

Employee attrition rate of professional services organizations worldwide from 2013 to 2021

On top of what you will charge for your time, you’ll want to factor in additional costs that may arise while you are working for your client. If you are spending any money on materials or transport for the project, you’ll want to include those in your fees. Think through logistical costs, the cost of business disruptions, and other hidden costs that might pop up along the way.

  • This percentage represents obligations that are expected to be paid within one year, or within the normal operating cycle, whichever is longer.
  • This percentage, also known as “return on total investment,” is a relative measure of profitability and represents the rate of return earned on the investment of total assets by a business.
  • 62.10% of consulting business owners have 1-3 full-time employees.
  • You can also add a clause to your contract stating that this project rate is based on the items outlined in the statement of work.
  • Ever wondered exactly what other coaches are offering, and ​for how much?

It’s not just the time you put into consulting—it’s the results of the consulting. An interesting read on consulting fees, it gives you something to think about. 23% of consultants polled have been consulting for 1-3 years. 0.76% of consultants are earning a whopping $250K+ per month. With the right strategy and mindset, consultants can earn five or six figures — or even more — per month. 3.80% of consultants do not have specialist expertise and are not looking to specialize.

Discovering what your competitors are charging

41.63% of consultants have never priced their services based on value because they don’t know how. Read on to learn about what consultants are doing with their consulting fees — and learn how to earn more revenue in your business. Value-based pricing will raise your consulting fees and provide more value to your clients. Here’s how you set your consulting fees using the project-based method. 80% of consultant are actively looking to increase their rate. 33% of consultants will lower their fees in order to win clients.

Average Rates By Industry

How do you put constraints along with the list of services? My customers tend to ask questions for a lingering 5 years and call and text all hours of the night and on weekends. Does being a consultant in the first place naturally discourage this? Do you charge hourly after the standard deliverables, or maybe include a specified number of support hours as a line item?

Even the best consultants can occasionally experience a lull in business and may need to lower their rate temporarily. However, you don’t want to price yourself out of potential work. If a client requests an hourly rate that’s below your normal fee, it’s important to be flexible and negotiate. Invoices are a popular payment option many consulting businesses use to charge their clients, and it can help you get paid faster for your services. With online invoicing software, you can send invoices via email and clients can pay via card online. Then you can track all of your invoices and payments through that software.

Statistics on Accenture

Survey method and number of respondents for the surveys prior to 2020 not provided by the source. This percentage indicates the profitability of a business, relating the business income to the amount of investment committed to earning that income. This percentage is also known as “return on investment” or “return on equity.” The higher the percentage, the relatively better profitability is. Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain. Vital industry facts, trends and insights in a new, shorter format. Purchase this report or a membership to unlock our full summary for this industry.