Everyone in IT thinks consulting is the "easy path" after years in software development, networking, or cybersecurity. But most aren't consulting they’re contracting.
They work like full-time employees: sitting in meetings, following the same processes, facing the same expectations. The difference? They get paid by the hour and miss out on benefits.
The shocking truth: it's not a lack of skill that holds them back. It's how they price themselves.
When you charge by the hour, you're selling time. True consultants sell value. And until you make that shift, you’re leaving thousands —maybe hundreds of thousands—on the table.
So ask yourself: are you charging for your hours or for the impact only you can deliver?
The Market
The market was around $110 billions dollars in 2025 according to IbisWorld.com. The industry has approximately 2 millions employees and more +450k businesses.
The industry is growing as more businesses rely on it to drive their digital transformation. They are adopting Online Payments, Cloud-Based Computing, Data Analysis, Artificial Intelligence, and more. The industry depends on your expertise and experience, while expecting you to work for pennies on the dollar.
The consulting industry segments divisions:
- By Type:
- Operations Consulting
- Security Consulting
- Strategy Consulting
- By Enterprise Size:
- Large Enterprise
- Small
- Medium Enterprise
- By Application:
- Government
- Banking
- Financial Services, And Insurance (BFSI)
- Telecommunications
- Manufacturing
- Other Applications
Sub-Segments:
- By Operations Consulting:
- IT Infrastructure Optimization
- Process Improvement
- Digital Transformation Services
- IT Service Management
- By Security Consulting:
- Cyber-security Assessment
- Compliance And Risk Management
- Data Protection And Privacy Consulting
- Threat Intelligence And Incident Response
- By Strategy Consulting:
- IT Strategy Development
- Technology Roadmap Planning
- Digital Strategy And Innovation
- Mergers And Acquisitions IT Strategy
I am confident that you see where your expertise fits in the industry. What if the price you charge is lowering your perceived value? Let’s break down the facts and see what’s happening.
Case Study
I just finished a consulting project with a large company that provides IT services to a government institution.
image arrow up
In just two months, my work generated $500,000 in savings.
And I was paid $19,200.
Here’s why.
I priced myself the way most contractors do, based on cost, not value:
Rate = Electricity + Internet + Tools + Other expenses + 25% profit
That formula landed me at $60/hour.
At the time, the scope sounded reasonable:
coaching developers, improving practices, and translating architecture from leads to my small team.
But once inside the project, the reality was very different.
I discovered massive gaps in the onboarding process.
So I fixed them.
Within two months:
- Developer onboarding dropped from one week to under three hours
- Zero rework after setup
- Morale skyrocketed on a highly complex project
- The solution scaled across 80 developers team
The result: $500,000 saved and that number will continue to grow with every new hire, especially given their high turnover rate.
Let's look at the numbers:
My compensation
(40 hours/week × 8 weeks × $60/hour) = $19,200
Value delivered ≈ $500,000
That means I left $480,800 on the table.
Not because I lacked skill.
Not because the client undervalued the work.
But because I used a contractor pricing mindset for a consultant level impact.
Contractor revenue: $19,200
Consultant revenue: at least $400,000
The difference wasn't effort.
It was pricing strategy.
Contractor Pricing Strategy vs Consultant Pricing Strategy
Consultant Mindset: The 3 Questions That Matter
To operate on the consultant side not the contractor side you must be able to answer these three questions clearly:
- What is the degree of usefulness of the outcome I deliver to the client?
- What proven process do I bring that the client does not already have?
- What level of trust can I establish with the person who makes the buying decision?
These three elements are the real leverage in any negotiation. This is where pricing power comes from.
Price your services accordingly.
All that glitters is not gold
At this point, you might be thinking:
“This sounds great in theory, but in the real world it doesn't work like that.”
You’re right it doesn’t happen by accident.
Results are never won at the moment of negotiation.
They are earned long before the conversation about price ever happens.
Just like championships aren't won mid-season they're won through preparation, positioning, and execution long before the final game.
This approach requires work beyond delivering the service itself:
- Use a consultant pricing strategy, not an hourly one
- Operate as an expert and authority, not a pair of hands
- Build a personal brand that precedes you
- Establish long-term relationships, not one-off transactions
- Above all, build trust before you need it
If you are interested, I can break down each of these elements in more detail.
Conclusion
Always set your price based on the value you create, not the effort you expend.
Create a unique offer that clearly separates you from the employee-for-hire mindset.
You are not selling hours, you are running a solopreneur business that helps clients solve problems they cannot solve on their own.
And remember:
A bottle of water costs:
- $1 at the grocery store
- $7 at Yankee Stadium
- $12 on a transatlantic flight
The product is the same.
Only the context and perceived value change.
You decide how you want to be perceived.
I’m curious what's the biggest shift you'd need to make to start pricing your work based on value instead of hours?
