Budding Consultant: What to charge for performing a desktop study.

[JoCam]

Hi All,

I have been considering Quality Consultancy for quite some time now, initially offering assistance with procedure writing, processes, QMS training and Quality Audits/Gap Analyses. A College associate (I'm doing an AutoCad course in the evenings at present) has recently set up a Civil Engineering firm, and we have discussed the setting up of websites extensively. Anyway, he has approached me to perform a desktop study of the Quality Manual and procedures he has compiled to gain certification to ISO 9001 at his facility. Initially I said I would do this as a favour, but he insists I charge for it. Whereas I have spent a lot of time thinking about becoming a Quality Consultant, most of the effort so far has been in what I can offer and how, and not yet anything financial. How much should I charge my college associate for this audit?

Thanks in advance.

 

[Wes Bucey]

I've moved this thread to a Forum where it might generate more response.
There are a few factors to consider in setting a price. Here's just a few:

1. First, for the examiner's time,
2. second , the examiner's expertise,
3. third, but not least, the potential ramifications for the individual hiring the examiner and his organization if the advice or recommendations of the examiner turn out to be faulty.

Let's hear from some of the old hands and newbies, too, about their views, especially other factors they think go into pricing a desk review.

 

[AndyN]

I've moved this thread to a Forum where it might generate more response.
There are a few factors to consider in setting a price. Here's just a few:

1. First, for the examiner's time,
2. second , the examiner's expertise,
3. third, but not least, the potential ramifications for the individual hiring the examiner and his organization if the advice or recommendations of the examiner turn out to be faulty.

Let's hear from some of the old hands and newbies, too, about their views, especially other factors they think go into pricing a desk review.

Jo - if you are going to review the complete documentation system prepare a comprehensive report and make recommendations based on your findings, so that your friend can get a plan of action together - maybe in preparation for a certification audit, etc, then it'll take a days worth of you time, at least. What's that worth? $500 is what I've seen charged for such a review

 

[JoCam]

Jo - if you are going to review the complete documentation system prepare a comprehensive report and make recommendations based on your findings, so that your friend can get a plan of action together - maybe in preparation for a certification audit, etc, then it'll take a days worth of you time, at least. What's that worth? $500 is what I've seen charged for such a review

Thanks AndyN,

That is exactly what I plan to do, but I'm not sure whether to charge for the hour or a one off fee for both the review and report. I suppose I'm looking for something that looks professional, but doesn't make my college friend recoil in horror.

 

[AndyN]

Thanks AndyN,

That is exactly what I plan to do, but I'm not sure whether to charge for the hour or a one off fee for both the review and report. I suppose I'm looking for something that looks professional, but doesn't make my college friend recoil in horror.

For such a task, when it's not exactly clear how long it will take - if they've done well, it could be less time - by the hour would be appropriate, IMHO.

I've found it's always the report where time is consumed - so it's worth getting a clear expectation from them what they'd like to see from you. That will cushion the 'blow' since the more comprehensive, the more it will cost.

 

[Duke Okes]

My preference (and it reduces risk for client) is a fixed fee. Amount would depend on number of documents and estimated time it would take.

 

[Wes Bucey]

When I am faced with such a proposition by a prospective client, I usually ask if I can skim read the documents (at no charge) BEFORE making a proposal on costs.

Remember, though, that I am a "full service" consultant and have been able to say to some clients after a brief perusal, "These appear to be in pretty good order. I don't expect to recommend any major changes, and maybe not even minor 'tweaks,' so I would charge only $_______ for the time it will take to write a summary of the good points and any questionable points, together with my recommendation for changing the ones I see as questionable."

Sometimes, however, I come across one which is obviously cribbed from someone else's operation and has no relationship to its own operation. In such cases, I take no money at that point, but tell the folks they will be best served by writing about their own operation, not trying to graft someone else's operation on to theirs. One example from memory was a small four man machine shop which had copied Boeing's Quality Manual word for word, merely substituting their own name in place of Boeing's.

The middle ground is to review one in which the documentation has some glaring flaws and yet the underlying operation is pretty stable. I usually bill for one full day of my time, even though it may take two or three days to sit the significant players down and give them the "Dutch Uncle" talk about the basic philosophy behind good documentation before giving them a summary of the fixes, followed by a free re-evaluation of the "fixed" documentation.

I, however, at this stage of my career, have different motives and financial needs than most consultants who NEED each fee they collect. I have a soft spot for the businesses and the folks who run them who are obviously trying to do good things, but have a few blind spots (fears?) about red tape and paperwork. I figure EVERYBODY , including me, gets helped when I help a business become more efficient The cascade effect throughout the entire supply chain is usually positive and, just incidentally, I get to reinforce my personal brand as a "go to guy."

 

[Duke Okes]

Kudos to you, Wes.

 

[John Broomfield]

Hi All,

I have been considering Quality Consultancy for quite some time now, initially offering assistance with procedure writing, processes, QMS training and Quality Audits/Gap Analyses. A College associate (I'm doing an AutoCad course in the evenings at present) has recently set up a Civil Engineering firm, and we have discussed the setting up of websites extensively. Anyway, he has approached me to perform a desktop study of the Quality Manual and procedures he has compiled to gain certification to ISO 9001 at his facility. Initially I said I would do this as a favour, but he insists I charge for it. Whereas I have spent a lot of time thinking about becoming a Quality Consultant, most of the effort so far has been in what I can offer and how, and not yet anything financial. How much should I charge my college associate for this audit?

Thanks in advance.

JoCam,

May I suggest not selling days or hours? Determine the value to the client and quote half of that value.

Reduce your admin costs by selling the value of your work. Specify your service for this particular job/project. Obtain the client's approval of your specification. Then sell the value of your solution inclusive of all expenses.

In specifying your service you are planning to fulfill the client's objectives and this can give you a better understanding of your client's needs than your competitors have.

You are also rewarded for your productivity (and frugality) when you work this way. Every now and again you will make a loss but you will then update your spec template to learn from that loss so it never happens again.

Clients love certainty of their cost instead of being hit with expenses and other bills from the time merchants.

John

 

[JoCam]

Thank you Wes, as always, excellent advice.

I did get a look at the job last night, and have taken it away to do exactly what you have said, and propose a charge after initial review. The system looks very good as my friend has been putting it together for 7 months in preparation for setting up his business, and I'm not expecting many recommendations for improvement. If anything it will be highlighting the processes and procedures that are not required for ISO 9001 compliance, but that he may wish to hold onto should he decide to go for an integrated system.

Thanks agan Wes.