SETTING AND MAXIMIZING PRICE ON YOUR CONSULTING SERVICES PANELISTS: DAN KAMDAR ILENE BUTKA LARRY NAGEL JIM BOYD

MY BACKGROUND Dan Kamdar is a president of Affordable Engineering Services. The company is a multi-discipline firm that specializes in Test Engineering, Reliability, Logistics and Quality for Aerospace and Defense applications. Dan has MSEE and MBA degrees and worked as a Senior Engineering Manager at Boeing for 25 Years.

ANALYSIS OF FEE FOR ALL CONSULTANTS The table shows the equivalent hourly fees charged by all consultants. Engineering experience Minimum Maximum Median 1 to 10 years $20/hr $175/hr $90/hr 11 to 20 years $40/hr $320/hr $100/hr 21 to 30 years $25/hr $2000/hr $110/hr 31 to 40 years $31/hr $1000/hr $120/hr Over 40 years $45/hr $468/hr $105/hr

The following table shows the annual earnings of these consultants. Engineering experience Minimum Maximum Median 1 to 10 years $3,700 $1,500,000 $89, to 20 years $1,500 $1,050,000 $100, to 30 years $1,000 $1,200,000 $100, to 40 years $7,348 $1,000,000 $100,000 Over 40 years $2,009 $415,500 $75,000

WHAT PRICE SHOULD YOU CHARGE? DATA SOURCES: (1)ALLIANCE OF IEEE CONSULTANTS NETWORK – JANUARY 2003 SURVEY (2) PROFESSIONAL AND TECHNICAL CONSULTANTS ASSOCIATION (PATCA) – 1999 SURVEY

SUMMARY: (1)TYPICAL CONSULTANT HAS A BS (27%), MS (51%) OR A PHD (20%) DEGREE. (2) HOURLY RATE RANGE FROM $35 TO $250 AN HOUR. AVERAGE RATE IS $98 AN HOUR. CONTRACT ENGINEERS (JOB SHOP) EARN BETWEEN $50 AND $60. (3)80% BILL AS TIME & MATERIAL; 20 % AS A FIRM FIXED PRICE CONTRACT. (4)71% WORK FULL TIME AS A CONSULTANT. BALANCE WORK PART TIME AS A CONSULTANT. (5)89% OF THE CONSULTANTS HAVE OFFICE IN THE HOME. (6)42% CARRY GENERAL LIABILITY INSURANCE. 8% CARRY PROFESSIONAL LIABILITY.

AGE OF CONSULTANT

HOW LONG AS A CONSULTANT

HOURLY RATE

CONSULTING INCOME

SOURCES OF CONSULTING WORK