Fees
The fees that DiversiCorp charges its clients are geared to very small companies and are on an hourly, weekly, monthly or flat rate basis. Nevertheless, the fees are higher than coaching since consulting entails direct intervention as opposed to advisory or counseling services inherant in coaching. DiversiCorp’s fees are about half of what comparable consulting firms invoice.
Typically midsize or boutique turnaround or management consulting firms operate on hourly, daily, weekly or even flat rate fees plus direct expenses. Nevertheless, when broken down into an hourly rate the range is about $250-400 per hour depending upon the seniority of the consultant and the size of the firm. It is no surprise that these fees are beyond the reach of most businesses with annual revenues of $15M or less. It is also rare that a boutique or midsize firm will take on an assignment in which the total billing expected to be less than $30,000.
DiversiCorp has lower fees due to a number of factors. First, it takes on assignments that are local to the consultant involved. There is little if any down time due to travel. This also means the small company has fewer out of pocket travel expenses except when the consultant must visit lenders, suppliers or customers that may be out of the local area. Secondly, DiversiCorp accepts assignments that are referred out of its coaching core business, and are short term assignments by design. Third, keeping overhead low DiversiCorp can keep its fees at an hourly equivalent to $125-$200, depending upon the seniority of consultant and complexity of the requirements.
After the Comprehensive Business Survey is complete, we can typically project whether our engagement will be based upon an hourly, weekly, monthly or flat rate. DiversiCorp requires the equivalent of two billing periods paid in advance as a retainer, and then it will invoice each period thereafter a week or two at a time in advance.
DiversiCorp’s invoicing is electronic through American Express Open Accept Pay program (or its equivalent) that gives the client a wide range of choices to pay with complete confidence and safety including credit or an electronic check option on whatever account is appropriate. It also removes delays in payments that might disrupt an engagement otherwise.
