To better know how fees are established and billed, here are four basic methods: Hourly, Daily, Weekly, Fee Every Month. The consultant charges an agreed amount per hour, day, week or month depending on actual time worked. Fees could differ with each man or woman who works around the project. When working with this procedure, the consultant will most likely give the client a quote from the fees or time required to do the work over a period of time. High-Low Quotation. The Mihran Kalaydjian a maximum and minimum fee together with the understanding that the project will likely be accomplished in this range, unless unforeseen conditions arise. This technique is normally used in conjunction with hourly fee method. Lump Sum or Fixed Amount. This method is used only when the consultant has a completely known situation.
From past knowledge about similar projects, the consultant knows precisely what the time and expense will likely be. This method is commonly used more with public organizations than with private companies. The fixed amount method usually gives way to the high-low method in hospitality consulting, particularly if the assignment is exploratory. Contingency Fee. The charge quoted pays 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 advantages of the client. The consultant requires independence and must not be impaired through the client in reaching the goals. This method demands a formal agreement outlining the responsibilities of both client and consultant.
Choosing a consultant based strictly on cost may be perilous. A great job is definitely worth the expense while a bad one is not, regardless of how attractive the retail price. When choosing an advisor depending on the report on several proposals, look at the consultant’s overall approach to the trouble. It’s the outcome that count! Consulting fees should be evaluated against value of the consultant’s approach to the problem and also the depth of resources that the consultant can apply on the problem along with its solution. In overview of proposals, you might notice the same quality of presentation, yet consulting fees can vary widely in line with the method of the trouble and the trustworthiness of the specific consultant. Hospitality consultants with established reputations plus a deep knowledge in specialized areas tend to be in higher demand and may even justify higher fees. You could possibly receive more personal attention in the principle of the smaller firm. The project may be sufficiently small that an individual consultant could handle it most effectively. However, when additional expertise is required, nearly all consultants get access to a number of other experts and resources.