I'm starting a consulting practice and I need to establish a retainer price. I can't predict how many hours each month I'll spend with clients, which makes it hard to set a price. What's a reasonable approach to take?
It's crucial to communicate with your client about this uncertainty. I recommend offering a range based on possible hours, then adjust after a few months of working together. This can also help align expectations.
I usually base my retainer on average hours I think I'll spend, plus a buffer. For example, if I think it'll take 10 hours a month, I set the retainer at that hourly rate times 10, then add 20% more for unexpected tasks. This approach gives me flexibility.
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