Every now and then one of my friends asks me a question about how much to charge.
Here is one such exchange, in case it can help you out too.
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Here’s the question:
I am writing a proposal/quote for a client (GREAT) for an interactive role play/facilitation on negotiations with stake holders.They have asked for us to quote for a 60 min session that they would like to video and roll out interstate and another quote option for us (team of 3 ) to travel interstate.I have little idea on how to charge for these and wondering if you could offer advice on travel fees and the video option?
Pricing video training sessions
Here is my reply:
Woo, tricky one!If they are rolling out interstate then you need to charge a licence fee for a certain time or certain number of showings. that fee could be smaller than having you guys travel there, but doesn’t have to be.So, for example, I’ve got a proposal in right now for one of my clients where we’re doing 20 x 5 minute videos and I have charged them $20k per year for 3 years as a licence fee. I compared it to $33k per time to deliver the same information in a classroom (and that they’d probably want that training 3 times in a year).
Spell out the ROI
Whatever you do, you need to spell out the client’s return on investment – e.g.
- training everyone live in 5 states = $100k
- training everyone with a video + 1 in-house facilitator = $77k (all numbers are improvised in that example).
Travel time
On the travel question: I don’t charge for travel time, but quite a few people I know do (usually about half the rate you charge for a day).
I generally give them a fixed cost and I’ve costed in the travel.
Check with them for airfares and hotels whether they pay or you do: some corporates get great discounts and prefer to do that kind of thing in house; if not, you can
- put in a percentage on top of what hotels and airfares cost and include it in the flat rate
or
- tell them that you will charge them at cost and bill them as you incur the expenses.
You can also set parameters for how you travel (e.g. you travel only during business hours, so they have to pay the night before’s accommodation if they want to start at 9am and the night after if they work you till 6), and the class of travel (some consultants will only travel business class).
