You’ve decided to monetize your expertise. You know you can help people. But when a potential client asks “What do you charge?”—you freeze. Too high and you’ll scare them away. Too low and you’ll be resentful and broke. Here’s how to actually figure out what to charge.
Why Pricing Feels Impossible (And Why That’s Normal)
If you’re struggling to price your consulting services, you’re in good company. Pricing is the #1 challenge new consultants face, and it’s particularly hard for women who’ve been socialized to undervalue their expertise and avoid seeming “greedy.”
The truth is, pricing isn’t actually about math—it’s about psychology. You’re not just calculating what your time is worth; you’re deciding what value you’re creating and whether you deserve to be paid for it.
Let’s break through that mental block and get you to a number you can say out loud without apologizing.
The Three Pricing Models You Need to Understand
Before you can set your rate, you need to understand how consultants get paid. There are three main models, each with distinct advantages and traps.
1. Hourly Billing
How it works: You charge a set rate per hour worked. Track your time, send an invoice multiplying hours by your rate.
Pros: Simple, transparent, easy for clients to understand. Good for projects where scope is unclear or constantly changing.
Cons: Caps your earning potential based on time rather than value. The better you get at your work (i.e., the faster you complete it), the less you earn. Encourages clients to watch the clock instead of focusing on results.
When to use it: When you’re just starting out and need cash flow, when scope is genuinely uncertain, or for ongoing support work where tasks vary week to week.
Average hourly rates (2026):
- General business consulting: $50-150/hour
- Specialized consulting (HR, marketing, operations): $150-300/hour
- Technical/AI consulting: $300-500/hour
- Executive coaching: $200-500+/hour
2. Project-Based (Fixed Fee)
How it works: You quote one price for an entire project with defined deliverables. Client knows total cost upfront regardless of hours spent.
Pros: Clients love cost certainty. You’re rewarded for efficiency—if you complete the work faster than estimated, you don’t lose money. Easier for clients to get budget approval.
Cons: If scope creeps, you eat the cost unless you’ve built in change order processes. Requires accurately estimating time and complexity upfront (hard when you’re new).
When to use it: When deliverables are crystal clear, when you’ve done similar projects before and can estimate accurately, when clients prefer predictable budgeting.
Average project fees (2026):
- Small projects (audits, assessments): $1,000-$5,000
- Medium projects (strategy development, program design): $5,000-$25,000
- Large projects (full implementations, transformations): $25,000-$100,000+
3. Value-Based Pricing
How it works: You price based on the financial impact you create for the client, not hours worked. If you save them $500K, you might charge $75K regardless of whether it took you 50 hours or 500 hours.
Pros: Highest earning potential. Aligns your incentives with client success. Rewards expertise and efficiency rather than time spent.
Cons: Requires confidence and skill in “value conversations” to quantify impact. Client must be sophisticated enough to see beyond hourly rates. Only works when value is clearly measurable.
When to use it: Once you have proven results and testimonials. When working with clients who think strategically about ROI. When the outcome is financially quantifiable (increased revenue, cost savings, risk mitigation).
How to Calculate Your Minimum Rate (The Formula)
Regardless of which model you choose, you need to know your absolute minimum—the floor below which you’re losing money.
Step 1: Determine your target annual income
What do you need to earn to cover your living expenses and feel financially secure? Be realistic. If you were making $100K in your corporate job, you probably need at least $80K-100K from consulting to maintain your lifestyle.
Step 2: Add your business expenses
Insurance, software subscriptions, website hosting, marketing, professional development, taxes (plan on 25-30% of income), etc. For most solopreneurs, this is $15K-30K annually.
Step 3: Calculate your billable hours
This is where people mess up. You won’t bill 40 hours/week, 50 weeks/year (2,000 hours). Realistically:
- 50% of your time goes to non-billable work: proposals, admin, marketing, learning, networking
- Factor in vacation, sick days, holidays
- Most consultants bill 1,000-1,200 hours annually
Step 4: Do the math
Formula: (Target Income + Business Expenses) ÷ Billable Hours = Minimum Hourly Rate
Example:
- Target income: $100,000
- Business expenses: $25,000
- Total needed: $125,000
- Billable hours: 1,000
- Minimum hourly rate: $125/hour
This is your floor. You should never go below this unless you’re deliberately underpricing your first 2-3 clients to build testimonials (more on that later).
How to Set Your Actual Rate (Beyond the Math)
Your minimum rate keeps the lights on. But you should charge more than your minimum. Here’s how to determine your actual rate:
Factor 1: Your Expertise Level
- 0-2 years consulting: Minimum rate to 1.2x minimum
- 3-5 years consulting: 1.5x to 2x minimum
- 5-10 years consulting: 2x to 3x minimum
- 10+ years + recognized expertise: 3x+ minimum
But here’s the thing: corporate experience counts. If you spent 15 years in HR leadership and you’re now consulting, you’re not a “beginner consultant”—you’re an experienced HR professional who happens to be new to independent consulting. Price accordingly.
Factor 2: Specialization Premium
The more specific your expertise, the more you can charge. “I help businesses with strategy” is generic. “I help SaaS companies $2M-10M ARR optimize their pricing strategy” is specific and commands premium rates.
General business consultant: $75-150/hour Niche expert: $200-400/hour
Factor 3: Market Demand
Are clients desperately searching for your expertise or is it readily available? Skills in high demand (AI, cybersecurity, regulatory compliance, executive coaching) command premiums.
Factor 4: Client’s Alternative Options
What would it cost the client NOT to hire you? What’s their next best alternative?
- Hiring a full-time employee: $100K+ salary plus benefits ($130K+ total cost)
- Hiring a big consulting firm: $300-500/hour with minimum engagements
- Doing nothing: potential losses from inefficiency, missed opportunities
If your $150/hour seems expensive to a client, remind them that a full-time hire costs $60-70/hour once you factor in benefits, overhead, and management time—and that person is permanent. You’re flexible and project-based.
The “First Client Discount” Strategy
Here’s a smart approach for your first 2-3 clients: deliberately undercharge in exchange for something valuable.
Offer: “My standard rate is $150/hour, but because I’m building my portfolio, I’m offering this project at $100/hour in exchange for a detailed testimonial, a case study I can publish, and 2-3 referrals to similar clients.”
Why this works:
- You’re not apologizing for being “cheap”—you’re explaining the discount is strategic
- You anchor them to your real rate ($150), so they know you’re giving them a deal
- You get testimonials and case studies, which are worth more than the money you’re leaving on the table
- You set the expectation that future clients will pay full rate
Do this for 2-3 clients max. Then move to full rate. Don’t get stuck in the “building portfolio” trap for years.
How to Quote a Project (Not Just an Hour)
Many consultants eventually move from hourly to project-based pricing because it’s easier to sell and more profitable. Here’s how to quote projects:
Step 1: Scope the project meticulously
- What exact deliverables will you provide?
- What’s included vs. explicitly NOT included?
- What timeline?
- How many revision rounds?
- What does the client need to provide?
Step 2: Estimate your hours (honestly)
How long will this actually take you, including research, client meetings, revisions, and unexpected issues?
Step 3: Multiply hours by your rate
If you estimate 40 hours and your rate is $150/hour, that’s $6,000.
Step 4: Add a 20% buffer
Projects always take longer than expected. Buffer: $1,200. New total: $7,200.
Step 5: Round to a clean number
Final project fee: $7,500
Present it as a flat fee with clear deliverables. Never show your hourly math—that invites negotiation and commoditizes your expertise.
How to Talk About Money Without Apologizing
The way you communicate your pricing matters as much as the number itself.
Bad: “Um, I was thinking maybe like $100 an hour? But I’m flexible if that’s too much!”
Good: “My rate for this type of work is $150/hour. Based on what you’ve described, I estimate this will be a $7,500 project.”
Notice:
- No hedging (“um,” “like,” “maybe”)
- No apologizing or justifying
- No offering to negotiate before they’ve asked
- Stated matter-of-factly, like you’re telling them what time it is
When they say it’s expensive:
“I understand this is an investment. Let’s talk about what you’re hoping to achieve and whether the ROI makes sense for your situation.”
Then shut up. Let them talk. Often they’re not actually saying no—they’re processing.
How to Raise Your Rates (And When)
Once you’ve been consulting for 6-12 months, you should raise your rates. Here’s how:
For hourly consultants: Increase by 10-20% every six months until you reach market rate for your expertise level.
For project-based consultants: Review quarterly and adjust based on demand. If you’re closing 80%+ of your proposals, you’re underpriced. Aim for 50-60% close rate.
How to tell existing clients:
“Starting [date 60 days out], my rates will be increasing to $X. I wanted to give you advance notice. If you’d like to lock in current rates for any upcoming projects, let’s discuss those before [date].”
Most will accept it. Some will churn. That’s okay—you’ll replace them with clients who pay your new rate.
Common Pricing Mistakes Women Make
Mistake 1: Charging what you think people will pay instead of what you’re worth.
You’re not a mind reader. Let clients tell you if your rate is too high.
Mistake 2: Offering discounts before anyone asks.
“My rate is $150/hour but I could do $100 for you!” Stop. Quote your real rate. If they negotiate, then you can discuss.
Mistake 3: Comparing your rate to your old salary.
“I only made $50/hour at my job, so $150/hour seems crazy!” Your old employer charged clients $300+/hour for your work and pocketed the difference. Now YOU keep that difference.
Mistake 4: Underpricing because “I’m still learning.”
Your clients don’t care that you’re figuring things out. They care about results. If you can deliver results, charge for them.
Mistake 5: Doing scope creep work for free.
“Oh, just one more thing…”—and suddenly you’ve done 20 extra hours unpaid. Learn to say: “That would be outside our current scope. I can send you a change order for that additional work.”
The Value Conversation (For When You’re Ready)
Once you have a few wins under your belt, start thinking in terms of value, not time. Ask questions like:
- “What would it mean financially if this project succeeds?”
- “What’s the cost of not solving this problem?”
- “If we increase retention by 15%, what’s that worth to you annually?”
- “How much are you currently losing to this inefficiency?”
If the answer is “This could save us $300K annually,” a $30K project fee suddenly seems reasonable—even if it only takes you 100 hours.
The Real Answer: It Depends (But Here’s Your Starting Point)
If you’ve read this far and you’re still thinking “Just tell me what to charge!”—here’s my direct advice for professional women with 10+ years of corporate experience starting a consulting practice:
Your first 3 clients: $75-100/hour or $3,000-5,000 per small project
Clients 4-10: $125-175/hour or $5,000-15,000 per project
After 10 clients: $150-250/hour or $10,000-50,000 per project
Once established (1-2 years): $200-400/hour or move fully to value-based pricing
These are starting points, not ceilings. Adjust based on your niche, location, and the value you create.
Pricing isn’t about picking the “right” number—it’s about picking a number you can say confidently, testing it in the market, and adjusting based on feedback.
The biggest mistake isn’t charging too much or too little. It’s never starting because you can’t figure out what to charge.
Pick a number. Say it out loud. See what happens. Then adjust.
That’s how every successful consultant figured it out. Including the ones charging $500/hour now who started at $75/hour five years ago.
Your expertise has value. You just need to start charging for it.
Additional Resources
Related WMN Article: How to Get Your First 10 Clients (When You Have Zero Network)
Consulting Success: Consulting Fees Guide
