Learn how to set reasonable fee structures for your services based on experience, expertise, geography, and market research. Consider factors like travel time rates, comparative markets, and fringe benefits. Compare average salaries to make informed decisions.
01 / 51Determining Your Fee Structure: Tips for Setting Competitive Rates
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Determining Your Fee Structure: Tips for Setting Competitive Rates
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Quantity of Experience vs. Expertise • The cost of living for a geographic region impacts determining fee structure • Experience and expertise are also components of determining a fee structure
Quantity of Experience and Expertise • A new orientation and mobility specialist may negotiate a lower rate • Compared to a veteran orientation and mobility specialist with over twenty-five years of experience
Geography 201 • States such as New York will typically have a higher fee basis than states like Georgia • A contractor in New York state charges $135 per hour • Another contractor in Alabama charges $58 per hour
Comparative Research with a twist • Determining for example, the base salary of an orientation and mobility specialist who works for a school district • Keep in mind that you are comparing apples to kiwis not apples to apples
Comparative Research with a twist • A private contractor would need to consider other factors such as expenses • gas • vehicle maintenance • office supplies • other expenditures
Comparative Research with a twist • Professional Errors and Omissions Liability insurance • General Commercial Liability Insurance • Business coverage for your vehicle
Comparative Markets • Determine what competitors charge e.g. other private contractors
Private Contracting • What state(s) have the lowest paid private contactors ? • Hint: Location, location, location
Travel Time • Some contractors charge a separate fee for travel time • Others incorporate it into their hourly rate • Travel time rates range from .51 per mile • 50% of the hourly rate for travel time
Travel Time • Georgia ($25) • Texas ($30) • New Mexico ($40)
Similar Markets • What is the average beginning salary of a teacher in the great state of Michigan? • What state has the highest average beginning salary for a teacher?
School Districts • What is the typical school year a school district employee ? • Is that factored into calculating base salary?
School Districts • What state has the lowest average beginning salary for a teacher ? • What is the median range for beginning teachers salaries ?
School Districts • State with the lowest average beginning salary (Montana) ($26,000) • Median range for beginning teacher salaries • ($37,000)
Mileage Reimbursement • Another benefit would be either the use of the company vehicle for work related travel • Reimbursement for mileage (personal vehicle) • Wear and tear on your car is not typically reimbursed
Blind Rehabilitation Outpatient Specialists • Many positions have factored into their base salary a locality adjustment based on the cost of living in specific geographic regions
Highest to Lowest Locality Payment Adjustments • San Jose-Oakland-San Francisco, California (35.15%) • Indianapolis-Anderson-Columbus, Indiana (14.68%) • Rest of the United States • (14.16% ) • State of Alaska • (4.72%)
Taking the leap • Congratulations, you have decided to go out on your own and become self-employed • Give yourself a pat on the back • Now exhale (after you have figured out what you have just done)
Take the Leap • Take a moment to say good bye to • Dependable paychecks • Fringe Benefits • Paid time off
Administration of your business • Paperwork…. oh what fun • Monthly deposits for federal, state and reemployment taxes (unemployment taxes) • Keeping current with all licenses required to have a business in your city, county and state
Administration of your business • Ensuring that invoices are paid in a timely manner • Ensuring that business expenses are paid on time
Resources • GS-11 requires ACVREP COMS (at least one area of certification more than one is preferred) • Salary Table 2012-GS
Resources • Rates Frozen at 2010 Levels effective January 2012 • Annual Rates by Grade and Step http://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2012/general-schedule/saltbl.pdf
Resources • Teacher salaries by state • http://teacherportal.com/teacher-salaries-by-state
Resources • The National Council of State Agencies for the Blind (NCSAB) • http://www.ncsab.org/director-list.aspx • Emailing every state that has a vocational rehabilitation program or a contractor facilitating that need
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