To higher understand how fees are established and billed, allow me to share four basic methods: Hourly, Daily, Weekly, Monthly Charge. The consultant charges an agreed amount hourly, day, week or month based on actual time worked. Fees could differ with each person that works on the project. When using this procedure, the consultant will most likely offer the client an estimate of the fees or time necessary to carry out the work over a period of time. High-Low Quotation. The Mihran Kalaydjian a maximum and minimum fee with all the with the knowledge that the project is going to be accomplished within this range, unless unforeseen conditions arise. This technique is usually used in conjunction with hourly fee method. One Time Payment or Fixed Amount. This technique is commonly used only if the consultant includes a completely known situation.
From past experience with similar projects, the consultant knows precisely what the time and expense is going to be. This process is used more with public organizations as compared to private companies. The fixed amount method usually gives approach to the top-low method in hospitality consulting, specially when the assignment is exploratory. Contingency Fee. The fee quoted is paid only when certain conditions are met or goals are reached inside a specified time. Contingency fees are 46dexppky when certain dollar amounts are reach to the benefits of the buyer. The consultant requires independence and should not be impaired from the client in reaching the goals. This process takes a formal agreement outlining the responsibilities of both client and consultant.
Selecting a consultant based strictly on cost may be perilous. A fantastic job will be worth the cost while an inadequate the first is not, regardless how attractive the cost. When deciding on a consultant depending on the review of several proposals, think about the consultant’s overall strategy to the situation. It’s the final results that count! Consulting fees ought to be evaluated against the need for the consultant’s approach to the problem and also the depth of resources that the consultant can use to the problem and its solution. In a review of proposals, you may notice an identical quality of presentation, yet consulting fees can vary widely based on the strategy to the problem and the reputation of the particular consultant. Hospitality consultants with established reputations as well as a deep knowledge in specialized areas are frequently in higher demand and may even justify higher fees. You could possibly receive more personal attention through the principle of your smaller firm. The project may be sufficiently small that the individual consultant could handle it most effectively. Alternatively, when additional expertise is required, almost all consultants have access to various other experts and resources.