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Professional Services in Canada, Whats the typical rate?

professional services rate custom development

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#1 Riva


    Neowinian Senior

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  • Joined: 11-February 07

Posted 22 January 2013 - 20:15

I was wondering what kind of rate do professional services companies/consultancies charge in Canada. Someone would like me to deliver a business solution for them and they are based in Canada. I am not sure how and how much to charge them at this point.

#2 vetthe evn show

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  • Joined: 10-June 02

Posted 23 January 2013 - 03:42


#3 Simon-


    Neowinian Senior

  • Joined: 04-November 02
  • Location: Australia

Posted 23 January 2013 - 04:03

There are articles online to work out how much you should charge for consulting.
Basically you figure out the yearly figure you want to make, factoring all the benefits you won't get like annual leave, sick leave, health insurance, and so on. eg: $100k Then you divide that by how many hours you think would be actually chargeable in the year (i.e. you can't charge travel time between clients). eg: 20 hours charged to the client per week x 50 weeks (2 weeks Annual Leave) = 1000 chargable hours per year. 100k / 1000 = $100 per hour. Still it is very rate for a consultant to bill 20 hours per week with all the non chargable work going on the background, so $100 or $200 or more per hour is no uncommon depending on the skills and what clients are willing to pay for those skills. Don't forget that it is still cheaper for them to pay these rates for a few hours a month/year than to have a salaried employee all the time even if not needed.

If you are going solution based, not time based, might be better to have an estimated project cost based on how much money you want to make out of it and how many hours you are prepared to put into it, but make sure you put in a clause that the project includes X many hours, time over X will be charged at Y per hour. 'cause they could keep changing the scope on you and take up more time than you intended without pay.