If you are in, or want to get into, the training business, you will be faced with the challenge of determining how much to charge for your training programs. It can be a frustrating and intimidating process. Keep in mind that professions like doctors and lawyers, and yes, even plumbers, have wildly variable rates. Training camp is no different. You can get some guidelines from a professional organization like ASTD (American Society for Training and Development), or you could probably find information online.

But here are some considerations and guidelines to keep in mind. First, the fees are based on a number of factors:

• your training topic (“basic” training, like teaching a computer program, is cheaper than “soft skills” training, like leadership development, which adds polish and marketability to executives)
• your experience and reputation (someone in the business for a long time, with an established client list and other credentials, such as a published book, will simply be able to charge more than a “newbie”)
• the perceived value of your training results, for example, whether your training provides a measurable improvement in performance, such as mastering a new skill, compared to learning from a book or “feel good” results
• what the customer will pay (corporations with deeper training pockets won’t flinch at a fee that might turn a smaller company off)

While there are no set industry standards for fees, here are some guidelines you can use:

• If you’re going to charge by the hour (probably not the best option, unless you’re going to be doing a lot of one-on-one consulting or coaching), rates are probably anywhere from $50-$500 per hour, depending on all the factors listed above. You can offer a “quantity discount” for multi-hour projects.
• If you are going to offer public seminars, where people register on their own to attend your program (in a hotel meeting room or in your own classroom), then you will probably charge per person. Your goal is to fill seats, so your prices should be perceived as a “bargain” so many people will sign up. Common prices for these types of programs are usually something like $99 or $129 per person.
• If you are going to do your business with companies, probably the most practical thing is to charge per workshop. Depending on the nature of the program, the intensity of its learning environment, its intended audience, and the other criteria above, it could range from $500 to $10,000 per day. I guess $2,000 to $5,000 is more typical. There are always some fixed costs to a workshop, no matter how long it is, so a shorter session will seem proportionally more expensive. In addition, the charge for a longer session will be proportionally lower since the fixed costs are spread over a longer time. So, for example, let’s say you charge $2,500 for a one-day program. For half a day, you can charge $1500 (more than half of the $2500). For a two-day session, you can charge $4,000 (less than double $2,500). Similarly, if a client wants to hire you to deliver their day-long program more than once, then you’ll probably discount their charge. So, using the same $2,500 example, if your client wants you to deliver that program five different times, then you could charge a total of $10,000 or even $8,000 instead of $12,500.

Two other cost issues to consider:

• One is a charge for materials. If you prepare materials for the participants, such as handouts or course workbooks, it is appropriate to charge something per person for those materials. You have a couple of options: you charge what it cost you to prepare them, in which case, you would include the invoice from the printer as an expense receipt with your invoice. The other option is to mark up the materials, so you can make a small profit. The amount of the surcharge is up to you. You just want to do whatever makes the per person fee reasonable. One customer might think $20 a head is unreasonable, another customer might be unfazed by $100 each. You have to know your customer and the perceived value of your materials.
• The other cost issue is expenses. It is standard business practice to pass on to the client any bona fide expenses incurred as a result of the delivery of this training, such as travel expenses, meals, mileage, parking fees. However, be careful. Many things you may have purchased for your program would not be considered appropriate carryover expenses. These would be items that are an essential part of your training, such as name tents, candy, notepads, pencils, etc. Your fee is understood to include those types of costs.

Regardless of what you charge for your training fee and materials, make sure it is agreed to in advance in writing.