Training Business – to determine how much to charge for the training of service

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If you are – or wish to enter – training business, you are going to deal with the challenge of determining how much to charge for your training. It can be frustrating and difficult process. Keep in mind that jobs like doctors and lawyers, and yes, even plumbers, have widely different rates. The training field is no different. You might get some guidance from a professional organization such as ASTD (American Society of Training and Development), or you could probably find information online.

But here are some issues and guidelines to keep in mind. First of all, the charges are based on many factors:

  • model training (“commodity” training, such as teaching a computer program is cheaper than the “soft skills” training, such as leadership development, which add Polish and liquidity managers)
  • experience and reputation (someone in the business for a long time, established client list, and other credentials, such as a book, will simply be able to charge more than a “newbie”)
  • perceived value of training results, such as whether the training delivers measurable improvement in implementation, such as master new skills, against only some book learning or “feel good” results
  • what the customer pays (companies with deeper pockets training will not compromise on a charge that could turn a small business)

Although there are no set standards for fees, here are some guidelines that you can use

  • If you are going to charge for an hour (probably not the best choice, unless you’re going to make a lot of advice or individual coaching), fees range from probably $ 50 to $ 500 per hour, based on all factors listed above. You might offer “volume discounts” for many hours projects.
  • If you are going to offer public courses, where people sign up on their own to meet the program (in hotel meeting rooms or your classroom), then you will probably charge per person. Your goal is to fill the seats, so your prices have to be considered “bargain”, so lots of people will sign up. Asked price for these types of applications are usually something like $ 99 or $ 129 a person.
  • If you are going to do business with a company, it is probably reasonable to charge of the workshop. Depending on the nature of the program, the intensity of the learning environment his audience it is intended for, and other criteria above, it could be anywhere from $ 500 to $ 10,000 per day. I guess $ 2,000 to $ 5,000 is the most typical. There area always a fixed cost in the workshop, no matter what length, and shorter sessions is going to appear relatively more expensive. As well, the fee for long sessions will be proportionately less where fixed costs are spread out over a longer period. So, for example, say you charge $ 2,500 for a one-day program. For half a day, you could charge $ 1,500 (more than half of the $ 2,500). For the two-day meeting, you could charge $ 4,000 (less than double to $ 2,500). Similarly, if a client wants to contract for you to carry one day program more than once, then you probably want a discount payment. So use the same $ 2.500 example, if a customer wants you to deliver the program five different times, then you might charge a total of $ 10,000 or even $ 8,000 instead of $ 12.500.

Two other business costs to consider:

  • One material fee. If you prepare materials for participants, such as handouts or course workbooks, is entitled to charge any person for that matter. You have a couple of options: to charge what it cost you to prepare them, in which case, you want to include a bill of the printer charges receiving the invoice. The other option is to mark up the content, so you can make a small profit. The amount of the levy is up to you. You just want to do what makes each person a reasonable fee. One customer could keep $ 20 a head is unreasonable, another client might not flinch at $ 100 each. You need to know your customer and the perceived value of your.
  • The other cost issue is cost. It is standard business practice to go through to the customer any bona fide expenses incurred due to deliver this training, such as travel expenses, meals, mileage, parking. Be careful though. Many things that you could have bought for your program would not be considered appropriate follow costs. These would be items that are an essential part of training, such as name tents, candy, notepads, pencils, etc. It is understood that the fee includes the types of costs.

What do you charge for the training and materials fee, make sure that it’s been agreed to in writing upfront.

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