What should I charge as my day rate? Management consulting type work.

[lemniscate]

I have the chance of a short term (6-8 week) contract with my old company doing consulting type work. Assuming they don't have a particular rate in mind, how on earth do I work out what rate to charge?

I have only recently quit work so know what my old salary was but obviously my day rate would need to charge more to cover the lack of benefits etc, from being freelance, and then I guess it being a short term contract might mean I could charge more. Any ideas on how I work it out?

Thanks!

Can you find out what the going rate is in your industry?

I don't think you should base it on anything like your old salary.

If I was a consultant I could charge £800 a day dependent on my qualifications and area of expertise. I earn nothing like that much when I am salaried.

We can't really answer your question tbh - can you have a look on recruitment sites for your speciality and see what the day rate is as advertised on there?

Really hard to generalise.

What was your day-rate to clients for your grade, when you worked for them (you don't have to say)? You will need to charge them less than this, but higher than your daily employee pro-rata salary. Do you know what was the going rate for any subcontractors you used when you worked there? Go in on the high side if they are the type to negotiate heavily.

It's a business judgement call for you. Think if it's going to be a long-term arrangement with lots of work coming your way that you don't have to actively sell. Or if they are going to be a hassle and muck you around, charge a premium for that.

There's some useful stuff here. If you work it out based on your previous salary, that will give you a ball park figure.

Don't sell yourself short! You're probably worth more than an external consultant because you already know the company - you won't waste any billable time on induction type stuff.

Should have been clear - I was in-house, salaried rather than being from a consultancy business, it's just that my background (a long time ago so not relevant for pay) was management consultant and I then did that sort of stuff in house for them for 10 years - McKinsey, Bain, BCG type work. No idea what day rate they pay big management consultancies. I've just calced what they paid me salary + bonus + pension (but not including the other stuff like car payments and share options etc.) and that was roughly £400 a day. So I'm guessing £600-£800 is reasonable given it is short term and I don't have all the benefits??

I know one or two people who worked from the company on contracts for similar work albeit in different areas (very big pharma so may not be huge uniformity across the different areas) - will try to get in touch with them and see what they charged.

Will also have a scout around and see oif there are any contracts advertised which are similar work.

I was told by a company that places independent consultants that they reckon on you earning your old annual salary in 100 days work (to allow for periods where you're not working etc), which would place my day rate at around £800 if I include pension and bonus.

Oh god, it's so hard working this all out for the first time!!!

Thanks for the advice by the way - all really helpful and getting me thinking :)

AT LEAST double what your salary was

I do not set the alarm for less than the national average weekly wage, per day - and that is on the basis I will not arrive with them before 9.45 !

You may need professional indemnity insurance which can be stunningly expensive. My stbexh used to pay £1700 per year - accounting finance type work.

my pii is £250 a year