--- title: Understanding SAP Consulting Rates [Survey Results] description: Learn how SAP Consulting rates, largely determined by SAP K rates, are influenced and why SAP independent consultant rates will remain high image: https://www.sapbwconsulting.com/hs-fs/file-16545041-png/images/clamping_down_on_the_dollar_400_clr_8791.png --- ![](https://www.sapbwconsulting.com/hs-fs/file-16545041-png/images/clamping_down_on_the_dollar_400_clr_8791.png) # Understanding SAP Consulting Rates [Survey Results] Table of Contents ## Seems like everybody wants to be a [**SAP Consultant**](https://www.sapbwconsulting.com/blog/how-sap-certification-ought-to-work).    [Companies](https://www.sapbwconsulting.com/sap-consulting-any-module) who [need a SAP consultant](https://www.sapbwconsulting.com/sap-view-consultant-profiles-resumes-and-cv) are usually faced with a shortage of [SAP consultants](https://www.sapbwconsulting.com/get-sap-consulting-support-now) as many [SAP projects](https://www.sapbwconsulting.com/blog/12-risk-management-considerations-to-measure-wricef-a) have severely[ underestimated their required project staffing](https://www.sapbwconsulting.com/estimate-your-sap-bw-consulting-resource-needs-calculator-timer).  It is said that [Demand](https://www.sapbwconsulting.com/blog/how-to-use-sap-bw-to-prevent-retail-losses) will create its own Supply.  ## [SAP Consulting Rates](https://www.sapbwconsulting.com/consulting-rate-calculator-whats-your-rate-archived-0)   Unfortunately, [SAP Consulting](https://www.sapbwconsulting.com/blog/10-secret-tips-to-choosing-sap-consulting-companies) Rates, whether they are [**SAP Independent Consultant Rates**](https://www.sapbwconsulting.com/blog/7-ways-to-influence-independent-consultant-rates) or based on a **average [SAP consulting salary](https://www.sapbwconsulting.com/sap-consulting-fi-co-mm-sd-pp-plm-bw-vora-hr-crm-scm-apo-ehs-grc-modules)**, have not created a situation of excess supply of [SAP expertise](https://www.sapbwconsulting.com/sap-partnership-advisory-services).  Why is that?  Why is it unlikely to change anytime soon: ![SAP Consulting Rates](https://www.sapbwconsulting.com/hs-fs/file-16545041-png/images/clamping_down_on_the_dollar_400_clr_8791.png?width=70&height=187&name=clamping_down_on_the_dollar_400_clr_8791.png) **Companies Are Squeezed for Dollars ** - [**SAP K Ratings**](https://www.sapbwconsulting.com/blog/how-to-determine-your-fully-loaded-cost-rate), a [consultant skill level](https://www.sapbwconsulting.com/blog/5-kpi-design-best-practice-guidelines) rating and ranking system apparently developed or at least adopted by [SAP](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-p2-the-ultimate-guide), is subjective, in the extreme. These K Ratings go a long ways toward answering the question of [how much to charge](https://www.sapbwconsulting.com/charge-out-rate-calculator) for consulting. - There is an on-going struggle between the **[SAP contract rate](https://www.sapbwconsulting.com/charge-out-rate-calculator) vs salary rate**. - There is a lack of understanding on the differences between working as a [1099er, W-2er or on a C2C (Corp-to-Corp)](https://www.sapbwconsulting.com/sap-jobs/Submit-Resume/how-to-work-with-us/) among consultants. Some SAP [consultants](https://www.sapbwconsulting.com/sap-consulting-fi-co-mm-sd-pp-plm-bw-vora-hr-crm-scm-apo-ehs-grc-modules) do not realize that when [working on a 1099](https://www.sapbwconsulting.com/time-sheet-management-1099-payments-for-contractors), they pay their [Self Employment Tax using the 1040SE](https://www.sapbwconsulting.com/consulting-rate-calculator-whats-your-rate), (Self Employment) tax and that this also is applied toward their social security payments. [![FREE Consulting Rate Calculator](https://no-cache.hubspot.com/cta/default/118735/71be0dbe-5150-494e-9ad9-e0051bc88ab0.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/71be0dbe-5150-494e-9ad9-e0051bc88ab0) - There is false perception of an on-going downward pressure on [**consulting pay rates**](https://www.sapbwconsulting.com/fully-loaded-cost-calculator).  Or at least that is what you may hear in the market. - Your [**SAP rate**](https://www.sapbwconsulting.com/blog/sap-center-of-expertise-sap-coe-approach), as an independent or salaried [SAP consultant](https://www.sapbwconsulting.com/request-sap-functional-consulting-support), depends upon **you** keeping your skill sets up-to-date.  - From a [SAP client](https://www.sapbwconsulting.com/discover-10-keys-to-selecting-sap-consulting-companies) perspective, [SAP ](https://www.sapbwconsulting.com/blog/5-reasons-why-your-business-needs-sap-services-consulting)**[consultant](https://www.sapbwconsulting.com/blog/5-reasons-why-your-business-needs-sap-services-consulting) fee rates** ALWAYS seem high:)   They are, in fact, not going down, [nor will they](https://www.sapbwconsulting.com/blog/how-to-understand-sap-modules-in-5-minutes).  Why?  **Training: ** SAP is not reducing the cost nor actually able to increase the value of their training. **Experience:**  Good [SAP consultants](https://www.sapbwconsulting.com/blog/top-10-strategies-for-maximizing-roi-with-sap-consulting-services) become [great SAP consultants](https://www.sapbwconsulting.com/enterprise-services/sap-industry-solutions/value-engineering) with experience, sometimes. **[SAP Consultant](https://www.sapbwconsulting.com/sap-consulting-services) Pay Expectations: **   ## Communication Skills are Critical   Almost all customers that we are working with have, as their number one consultant skill requirement, the ability to [communicate](https://www.sapbwconsulting.com/free-website-seo-audit-grader-serp-sem-amp) in English at the native level.  Seems like a basic, assumed [requirement](https://www.sapbwconsulting.com/free-website-seo-grade-audit-serp-sem-amp), but the market has suffered by the absence of this skill and now it is front and center.   ## Top Gun SAP Consultants  To give you some idea of some of the key SAP BW Skills required of a Top Gun [SAP BW](https://www.sapbwconsulting.com/understanding-sap-bw-in-5-minutes) consultant, we have prepared this little spider chart.   ![SAP BW Consultant Skills Training Plan Matrix](https://www.sapbwconsulting.com/hs-fs/file-233722588-png/images/sap_bw_consultant_spider_chart.png)   ## SAP BW Consultant Spider Chart   As you can see from the spider chart above, the most effective SAP BW consultants (the ones who will finish your project on schedule and not cause you project delays, redo's, do-overs or burn through your budget) are: - Consultants with the **most experience** - Consultants who are **On-Site** They are also the most expensive and for good reason. They have demonstrated the ability to deliver and the market has rewarded them for that. A consultant with any weaknesses in their knowledge or experience related to the areas above will most likely not be able to do the work required of them.   ## Continuous Learning This does not mean they can not learn. We all can, do and must learn and expand our knowledge on every project. But it does mean they will have to take the time while on your project to learn the material, tools and techniques which will extend your project time line. This is simply another [risk](https://www.sapbwconsulting.com/manage-risk-using-our-risk-management-guide) and the cost of doing a project. Budget for it and move on. For example, you can not learn **ABAP** overnight in your hotel room or pick it up from **SDN**. [![Get SAP Consultant Rates - 2012](https://no-cache.hubspot.com/cta/default/118735/45ad425d-defa-412f-bd7e-23b4ccdc36a4.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/45ad425d-defa-412f-bd7e-23b4ccdc36a4) . [![Get SAP Consultant Rates - 2014](https://no-cache.hubspot.com/cta/default/118735/f9148f2c-3b5f-4183-a71d-c357a9926c52.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/f9148f2c-3b5f-4183-a71d-c357a9926c52)     This can result in embarrassing project delays and require additional manpower to be added to the project to fill in the experience gaps. Two heads may be better than one, but they cost twice as much. SAP BW technical interview questions in any of the areas above will soon uncover those candidates who are qualified and those who are not.   ## Multiple Staffing Approaches Offered   A little side note here: we have **Offshore** teams, we have **Remote Development** teams and we have **On-Site** teams. On our [IT Staffing Service](https://www.sapbwconsulting.com/sap-consulting-any-module) side, we even do **Perm and Direct Hire** placements. The **On-Site** model by far has been the most effective.   ## Experience Counts   **We recommend **that you always hire the most experienced person you can find and that the work be done **on-site**. You will pay a little more money for their expertise but it is money well spent or perhaps [invested](https://www.sapbwconsulting.com/blog/how-to-improve-sap-profitability-management-p2-the-ultimate-guide). It's like paying a little more money for the best car on the road. You get better quality, you get better workmanship, you get better results and you get a better experience.   ## Learn About SAP Using Our Mindmap   Want to learn more about the vast system known as SAP?  Try our SAP Mindmap to get started.       [![Explore SAP R3 Solution](https://no-cache.hubspot.com/cta/default/118735/f18b9643-3abf-4f23-83cb-705d67939bb6.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/f18b9643-3abf-4f23-83cb-705d67939bb6)   **People Who Read This Also Read:** - [12 Easy Steps To Being A Better SAP Consultant](https://www.sapbwconsulting.com/blog/12-easy-steps-to-being-a-better-sap-consultant) - [Get Our Guide To Becoming A Top Gun SAP Consultant](https://www.sapbwconsulting.com/get-our-guide-to-becoming-a-top-gun-sap-consultant) - [How To Use SAP Value Engineering Services](https://www.sapbwconsulting.com/blog/how-to-use-sap-value-engineering-services) - [Learn What Makes The SAP DFPS Solution Different](https://www.sapbwconsulting.com/blog/learn-what-makes-sap-dfps-solution-different) - [3 Keys To Selecting SAP Professional Services Consulting Firms](https://www.sapbwconsulting.com/blog/3-keys-to-selecting-sap-professional-services-consulting)      ## **About SAP BW Consulting, Inc.**   SAP BW Consulting, Inc. [provides specialized SAP solutions](https://www.sapbwconsulting.com/blog/sap-services-consulting), including [SAP Business Intelligence](https://www.sapbwconsulting.com/blog/learn-more-about-our-sap-business-intelligence-consulting-services) (BI) and SAP Business Warehouse (BW) consulting, SAP ABAP development, and [SAP project management](https://www.sapbwconsulting.com/blog/sap-support-companies) across 16 core SAP modules and 31 industry solutions.   We also developed our own [1099 Contractor Invoicing and Payment Management System](https://www.sapbwconsulting.com/blog/1099-contractor-payments) to meet in-house needs, now available to clients. As certified HubSpot Marketing and Sales Partners, we offer lead generation and sales support, alongside Salesforce and Balanced Scorecard consulting services.   Unlock your business's potential. [Book a meeting with us](https://www.sapbwconsulting.com/request-sap-implementation-consulting-support-meeting-request).   Topics from this blog: [Best Practices](https://www.sapbwconsulting.com/blog/topic/best-practices) [Consulting](https://www.sapbwconsulting.com/blog/topic/consulting) [BW](https://www.sapbwconsulting.com/blog/topic/bw) [Service Partner](https://www.sapbwconsulting.com/blog/topic/service-partner) ### Download SAP BW Mindmap Learn what SAP Business Warehouse is and what it does in under five minutes [![Get this Mindmap](https://no-cache.hubspot.com/cta/default/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b) [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ### Lonnie D. Ayers, PMP About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and ** remote coaching. ** ![Balanced Scorecard Consultant](https://www.sapbwconsulting.com/hubfs/social-suggested-images/Balanced%20Scorecard%20Certified%20Graduate.jpg) He also recently released a book **"How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results",** which is available on [ Amazon.](https://www.amazon.com/Dominate-Turbocharging-Digital-Marketing-Results/dp/1728357950/ref=sr_1_1?dchild=1&qid=1589182458&refinements=p_27%3ALonnie+D.+Ayers&s=books&sr=1-1&text=Lonnie+D.+Ayers)**** [View All Articles by Lonnie D. Ayers, PMP](https://www.sapbwconsulting.com/blog/author/lonnie-d-ayers-pmp) ## The SAP Blog Subscribe to our blog and receive SAP BW Updates, demand generation, inbound marketing, sales enablement, technology and revenue generation insights and ideas delivered right to your email. [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ![SAP](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/960101754/?value=0&guid=ON&script=0) ![](https://www.facebook.com/tr?id=199270410761059&ev=PageView&noscript=1) ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/understanding-sap-consulting-rates#blogposting", "@type" : "BlogPosting", "about" : [ { "@type" : "Thing", "name" : "Learn", "sameAs" : "https://en.wikipedia.org/wiki/Learning" }, { "@type" : "Organization", "name" : "SAP", "sameAs" : "https://en.wikipedia.org/wiki/SAP_SE" }, { "@type" : "Thing", "name" : "Consulting", "sameAs" : "https://en.wikipedia.org/wiki/Consultant" }, { "@type" : "Thing", "name" : "rates", "sameAs" : "https://en.wikipedia.org/wiki/Rates_(tax)" } ], "author" : { "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person" }, "headline" : "Understanding SAP Consulting Rates", "inLanguage" : "en", "mainEntityOfPage" : { "@id" : "https://www.sapbwconsulting.com/blog/understanding-sap-consulting-rates#webpage" }, "mentions" : [ { "@type" : "Thing", "name" : "Results", "sameAs" : "https://en.wikipedia.org/wiki/Result" }, { "@type" : "Thing", "name" : "Companies", "sameAs" : "https://en.wikipedia.org/wiki/Corporation" }, { "@type" : "Thing", "name" : "shortage", "sameAs" : "https://en.wikipedia.org/wiki/Shortage" }, { "@type" : "Thing", "name" : "required", "sameAs" : "https://en.wikipedia.org/wiki/Requirement" }, { "@type" : "Thing", "name" : "project", "sameAs" : "https://en.wikipedia.org/wiki/Project" }, { "@type" : "Thing", "name" : "Demand", "sameAs" : "https://en.wikipedia.org/wiki/Supply_and_demand" }, { "@type" : "Thing", "name" : "Supply", "sameAs" : "https://en.wikipedia.org/wiki/Supply_chain" } ], "name" : "Understanding SAP Consulting Rates", "potentialAction" : { "@type" : "ViewAction", "name" : "Get SAP Consulting Rates", "target" : { "@type" : "EntryPoint", "actionPlatform" : [ "http://schema.org/DesktopWebPlatform", "http://schema.org/MobileWebPlatform" ], "inLanguage" : "en", "urlTemplate" : "https://www.sapbwconsulting.com/sap-consulting-rates-bw-bi-bo-hana-market-survey-2014" } }, "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com/blog/understanding-sap-consulting-rates" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#website", "@type" : "WebSite", "inLanguage" : "en", "name" : "SAP BW Consulting, Inc.", "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#organization", "@type" : "Organization", "logo" : { "@id" : "https://www.sapbwconsulting.com#logo" }, "name" : "SAP BW Consulting, Inc.", "sameAs" : [ "https://www.linkedin.com/company/543163/admin/", "https://www.youtube.com/user/SAPBWConsulting/", "https://twitter.com/Lonniea39", "https://www.facebook.com/SAPBWConsulting" ], "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#logo", "@type" : "ImageObject", "caption" : "SAP BW Consulting, Inc. logo", "url" : "https://www.sapbwconsulting.com/hs-fs/hubfs/sapbw-consulting.png?width=2847&name=sapbw-consulting.png" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person", "@type" : "Person", "name" : "Lonnie D. 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