November 2008

Vol. 1, Issue 10

Contents:
1. Bed & Bike America
2. We Need Your Support for 2009 Programs
3. Resources Highlights - Management Tools
4. Hot Topics - Consulting Fees

Bed & Bike America
By: Sue Knaup, Executive Director

Our official launch of this new One Street program won't happen until January, but we wanted all of you to have a sneak preview of what it will offer. Leo Sobottka, our fabulous and talented intern from Berlin, is developing the web space that will help cycle tourists find bike-friendly hotels, hostels and even campsites across the U.S. and eventually Canada and South America - thus our choice of the name "America" to allow this expansion. Leo is following the successful program of the ADFC, the German bike federation, but in a simpler format to start with. Take a look at our link for the program: www.bedandbikeamerica.org

Leo and I will begin meetings with accommodation vendors next week, so we apologize that you will not find any posted yet. But we have enjoyed enthusiastic calls from several vendors and hotel chains already, just in response to this front page newspaper article that was picked up by AP and appeared across the U.S. As Leo puts it, "Our partners are sitting on their backpacks, ready to go!"

If you know of accommodation vendors who might like to be listed as a Bed & Bike America vendor - hotels, bed & breakfasts, hostels, campsites - please email me their contact info at sue{at}onestreet.org. It is no charge for a one page vendor listing that will be linked to the home page map for easy access by cycle tourists. We'll also offer home page sponsorship opportunities, for vendors who want even more promotion of their bicycle friendly accommodations. And look for our next update in January. If all goes well, we'll be celebrating our official launch of Bed and Bike America!

We Need Your Support for 2009 Programs

November is our month to prepare for One Street's program successes in the following year. Regular E-news readers will know that our on-call support and Social Bike Business program represent the framework of our program offerings. In 2009, we plan to take each of these to their next level. But that won't be possible unless we receive new funds from supporters like you. You can find our supporter form here: http://www.onestreet.org/donate_gate.php . And here are just a few big steps we'll be able to take with your support:

In 2009, with your support, we'll upgrade our on-call services, publish our coaching curriculum to train new coaches, conduct workshops for leaders, and develop the Resources area of our website into an interactive library that always offers the latest and greatest resources from around the world. And since One Street only serves leaders of organizations that are working to increase bicycling, these on-call services translate directly into more people choosing to bicycle in communities around the world.

Also in 2009, with your support, we'll launch our first Social Bike Business pilot project that will establish a training and bicycle manufacturing center that will serve nearby distressed neighborhoods with affordable transportation bicycles. This center will train new bike shop owners who live in poverty and help them open their own bike shops in distressed neighborhoods near the center that sell and service these bikes.

But we can't take these exciting steps without your support. Please click on the link above to offer your support and ensure One Street continues to build on our strong foundation.

Resources Highlights - Management Tools

Leaders of organizations working to increase bicycling need easy access to the "must haves" for running an effective and sustainable organization. Whether they have been at the helm for years or have just stepped into the role, One Street's Management Resources web page is worth regular visits to ensure all the important tools are in place: http://www.onestreet.org/management.html

Hot Topics - Consulting Fees

This month we received more calls than usual regarding calculating consulting fees in funding proposals. Most of these calls were very uplifting because the leaders made sure to check in with us BEFORE sending their proposal to the government agencies and for-profit partners they hoped to work with. This allowed us to steer these leaders towards competitive rates that will not only show their value to the partners, but cover all costs of the project including overhead.

At One Street we always encourage leaders of nonprofit organizations to seek out opportunities to offer their expertise as consultants. Not only does this establish their organization as the source for bicycle expertise in the communities they serve, but it can also offer a new source for much need funds.

Unfortunately, many nonprofit leaders do not understand how to calculate hourly consulting fees and often state fees that coincide with employee hourly salary rates that do not include hidden overhead costs for each of these employee hours.

Such low-ball pricing causes two major problems for the organization:

  • If they are hired for the project, it will end up draining the general funds of the organization and compromising their other programs. In the worst cases, since signing the contract commits the organization to complete the work, staff from other program areas must be laid off due to this general fund drain.
  • Presenting a contract proposal with such low hourly rates shows the potential partner that the organization and its experts have an extremely low value - you get what you pay for. In fact, such low-ball pricing often dooms a proposal.

Here's how you find out the going rate for consulting fees for your next contract proposal:

  1. Google "hourly consultant fees" "hourly consulting rates" or "hourly contractor rates" plus the name of your city and you'll likely find minutes of government meetings that approved the going rates for several types of experts.
  2. Ask a few service companies whose work would equate somewhat with what you and your organization would offer the potential project. For instance, web designers, accountants, and even plumbers primarily offer expertise.
  3. If you have a close relationship with your potential partner/funder you can simply ask them what hourly contracting or consulting fees they are used to paying.

To give you an idea of common hourly rates for high-level expertise such as bicycle project design, outreach to constituents, public meeting coordination, in-school bicycle education, etc.:

  • In large cities, hourly rates are usually just below or just above $100.
  • In small or midsized cities, common hourly rates range between $70 and $80.

If you can also offer less expert positions, for instance project coordination, data input, or resource gathering. These positions should be proposed at a slightly lower rate than the rate for the experts, perhaps $50 - $60 per hour.

And one final, important note: If you plan to use volunteers to do some of the project work such as bike counts or data entry, you still must request the $60 per hour rate per volunteer! Just as you cannot align your consulting rates with staff salaries, you also must avoid fixating on the fact that the volunteers are "free." In fact, volunteers often cost your organization more per hour than regular staff members because they require so much outreach, coaching and coordination time. And don't forget the pizza!