Hello Everyone
I am in the process of re-establishing a small training provider for the hospitality industry.
I am making some good gains with a bespoke package that I have developed for 1-2-1 training.
However, how would I charge for this? Would it be a day rate? or perhaps charge for the whole project? or even per delegate?
Does anyone have a tool on how to work out these rates, using any of the above as a basis?
Any feedback would be much appreciated as this is the first time that I have undertook this exercise.
Regards
Neil
Neil Farren
2 Responses
Make it pay
Neil
This is a big question and one that I am often asked by our members; especially those entering the market from the ‘safety’ of employment.
The basic premise is that you have to make your time pay. The model that you might use must pay for your time whethr it be by project or by day/hour. And how much to you need to get for your time; please find a link to a piece I wrote as a way of enlightening purchasers why trainers charge what they do.
http://trainerbase.info/purchasers/tpb2
You now know what you need to charge for your time. Per day / per project / per delegate will use the above as a basis. If you consider the per delegate then you have another variable to add to your calculation.
If you want to earn £500 per day (for your time) and there are 10 delegates that set the rate at £50+. The problem with this is that what happens if only 6 turn up or pay.
One of the biggest concerns I have with 1.2.1 coaching is that the business model does not appear to stack up. If you are worth £500/day; that is £70+ per hour. Will coachees pay this (big corporates might)? And granted the value should be based on the outcomes of any intervention; but that is whole different subject:)
I hope the above helps.
Peter
Founder, Chief Executive
TrainerBase
The Association for Learning Practitioners.
And if anyone whants to use the above scenario, do please attribute it to TrainerBase (me:)).
Does it cost what it’s worth?
Neil,
ultimately, you decide what your time is worth and what value you think you’ll bring to your clients.
They, of course, will decide what value your expertise, has for them.
I have found that some people/ agencies will think any price is over costly, others think that a daily rate of, say £500, suggests that you can’t be very good!
My 1-2-1 rates vary from £60 – £150 an hour for up to two hours i.e. minimum £120.
That you are making good gains with the bespoke package is evidence that your service serves people well.
And I wish you well
MM