How to Price B2B Consulting Services
Corporate consultants hold immense value, but often underprice themselves by equating their consulting rate to their old corporate salary. If you made $100k a year at McKinsey, you cannot charge $50 an hour as an independent consultant. You must use the ToolBizz Consulting Pricing Calculator to factor in self-employment taxes and unbillable prospecting to set a true independent rate.
The Unbillable Time Trap
Independent consultants spend roughly 40% of their time prospecting, writing proposals, and doing admin work. This means your billable hours must subsidize your unbillable hours. When setting your target hourly wage, use our Salary Converter to mathematically boost your rate to cover 100% of your operational overhead.
Retainers vs. Hourly Invoicing
The most profitable consultants transition off hourly tracking and onto flat monthly retainers using value-based pricing. Once you calculate your required rate, secure the client on a monthly retainer generating a predictable Consulting Invoice. If a corporate client pushes back on Net-30 terms, utilize automated Payment Reminders to maintain your cash flow.
Frequently Asked Questions (FAQ)
An elite solo consultant operating out of a home office should aim for an 80-90% gross profit margin on their billable work, as the only overhead should be software, travel, and legal/tax preparation.
Yes. If you must fly or drive to a corporate HQ, that transit time takes you away from other billable clients. You can track exact travel and lodging costs to bill back to the client using a Business Expense Tracker.