Rate structure for different services?
Hi all, and Happy New Year.
As you know, I've been doing quite a bit of tech work lately in my area - emergency service, regular maintenance, and installs. With the way last year went, it looks as though I'm going to continue to be able to do this going forward. This is good.
One thing that I've been noticing is that many of my install customers (and even a few of my regular service call ones) are looking for information beyond the machine - menu structure, recipes, basic barista technique, bar layout, etc. I'm going to begin offering these services on a little more formal basis starting next week.
Based on the pricing for the SCAA's classes and the Counter Intelligence rate, I have an idea of how much is being charged for intro/hands on classes - around $150 per person. I'll probably discount that for my customers (or sessions that are attached to installs or maintenance jobs) to $125 per person, including coffee, milk, and course materials. This class is meant to take 4ish hours, depending on how many people are involved. I may discount additional people a little to reflect incremental costs.
The consulting fee is a bit of a question mark though. Can't very well charge my "street" tech rate of $60/hr for that, can I? Never hired a coffee consultant so I have no idea what the going rate is. So... what should I charge? What have you paid? What would strike you as being reasonable and fair? What, aside from answers to questions and chicken-scratch sketches, should my customer expect in return?
Thanks in advance for any input here.
Replies to This Discussion
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Permalink Reply by Brady on
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Oh, and to answer a couple of potential questions in advance...
In addition to training a couple of baristas at our shop, I've been a Station Lead at SCAA hands-on espresso twice. I've attended Counter Culture's Beginner Espresso, and helped out a bit in that session. Planning on attending SCAA's Instructor Development Program at next opportunity, to get Lead Instructor certification.
My training packet is going to be built from the SCAA's Hands-On Espresso one and Counter Culture's Beginner Espresso Lab... with a couple of my own tweaks.
As far as consulting, I helped start up the family shop, including doing that bar design, menu, and recipes... with good results. I've also been doing a bit of free consulting with several customers over the past couple of months, just to see if the information I had to give was at all valuable. They've found it very useful, and the results I've seen in their shops were good.
I know my credentials aren't terribly impressive, but I think the information I have to offer is sound and useful. Training and Consulting aren't meant to be a focus for my business just yet... there are more experienced trainers and consultants working in my area already. This is just meant to be something that I'll also offer while I'm there doing equipment work, in case they ask... because they often do.
Thoughts?
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Permalink Reply by Dennis McQuoid on
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Don't sell yourself short. You have a lot of valuable knowledge. As for the classes, at those rates you would need a minimum of 4 people before additional person discounts. You can go through a lot of milk and coffee during a training session. Materials cost is not free either.
I would say your consulting rates should be at least as much, if not more, than your tech fees. Not all services are hourly based. For instance, you could charge a fee for bringing in an architect and build-out contractor. Of course you would have responsibility for overseeing their work.
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Permalink Reply by Jay Caragay on
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One of my uncles, who is a very savvy businessman, once told me that the beauty of consulting is that you get paid for giving advice and if it goes wrong, it can always be turned around that they didn't follow your advice.
If I were you, I would investigate Andrew Hetzel's website. He's a coffee consultant and makes what seems to be quite a good bit of money at it.
Also, there's a popular story about Pablo Picasso. Once upon a time, a lady ran into Picasso while in Paris and asked him to sketch her. He agreed and did a quick, ten minute sketch of the lady and then charged her ten thousand francs. The lady said to Pablo: "But it only took you ten minutes!" To which, Picasso replied: "Madame, it has taken me my entire life to do that sketch."
Respect your abilities and charge accordingly.
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