Offering fair and honest prices will make your clients love you, and they will be very likely to refer you to others in the area as well. Here are a few things to consider when making the difficult decision.
You need to determine exactly what level of salary is needed to pay for all your personal expenses. You may have to make some little sacrifices at first, but you shouldn't have to make too many or it will affect your business.
What is your competition charging? You should charge about the same amount the competition is charging. If you charge less, prospects may believe that this is equivalent to second-rate service. If you charge more, you need to be able to give a valid reason as to why you're that much better than the competition.
How much is the market willing to pay? You can quote higher fees if the demand for consultants is high and there are only a few consultants in the market; however, make sure that your fees are always fair and reasonable.
To learn more about how to set your fees appropriately and fairly for both you and your clients, read the entire article (link above).
Added by Computer Consulting 101 Professional Kit