Date: Sun, 29 Apr 2001 00:52:45 +0100
Reply-To: John Whittington <John.W@MEDISCIENCE.CO.UK>
Sender: "SAS(r) Discussion" <SAS-L@LISTSERV.UGA.EDU>
From: John Whittington <John.W@MEDISCIENCE.CO.UK>
Subject: Re: Slightly Off-Topic -- Consulting vs. Full-Time Wages
In-Reply-To: <E14tcvV-0005DK-00@relay1.netnames.net>
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At 22:02 28/04/01 GMT, Lou Pogoda wrote:
>It isn't, really. There are roughly 2000 working hours a year (50 weeks a
>year, 40 hours a week). If you are making $100k a year as a salaried
>employee, that's an hourly rate of 100,000 / 2000 = 50 an hour. ... But
>that's just salary. To stay even, you need to add in ....
Lou, I think you have missed the light-hearted side of Phil's comment,
which I think was picking up on Andy's typo when he wrote $100k/hour!
As for the serious question, everything of course depends upon what is
meant by 'consultancy'. For many people here, it may merely refer to a
series of relatively long 'full-time' (often 'on site') contracts - in
which case 2000, or even more, hours per year is quite feasible. However,
when one moves into what I would call 'true consultancy' (which is more
like what I do), 1000 hours per year is far more realistic basis for a rule
of thumb. However, one then has to more-or-less double (at least multiply
by 1.5) the resultant figures to account for all the overheads and
contingencies that you mention ....
.... accordingly, in terms of my rule of thumb for 'my' type of
consultancy, if one wants to make the equivalent of a $100k/year gross
salary, one would actually have to change something between $150 and $200
per hour - on the basis of 1000 chargeable hours per year, multipled by 1.5
or 2.0. Looked at the other way around, if one charges $100/hour for that
sort of consultancy, one is likely to end up equivalent to a gross employed
salary of some $50k-$67k/year.
That's how I see it, anyway!
Kind Regards
John
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