Unfortunately, I have to respectfully disagree with the author. Several reasons:

1. My moniker is "The Price Whisperer." This moniker is not something I invented, but I was called this so many times I adopted it. I have helped almost 1000 companies take themselves to the next level by pricing right and putting pricing at the center of their business strategy, including one-man-band consulting and coaching companies.

2. Levels: $28.40 an hour? Give me a break. You will not get a competent gardener, plumber, or house painter for that price. A friend of mine has an hourly rate of $25,000. He says he should not be engaged if he cannot add $250k in value in an hour. I rarely sell my time hourly, but when I do, my fees equal a top-level attorney.

3. Price sets an expectation of value and benefit. If you underprice your service (as with 28.40/hour), your client will expect poor results and benefits and will not buy.

4. And this is the most critical flaw here - the price should reflect the value you deliver to your customers. Maybe $28.40 is a reflection of the value, but then that value is not very high. So as a consultant, it becomes crucial to understand what value you bring to the client and what the client is willing to pay. So how do you find out what clients are willing to pay - because you cannot ask. So what you do is that you talk to some 25 companies that are neither clients nor prospects, and you describe your consulting and the benefits you bring, and then ask two questions:

- Now that you know the benefit my consulting will give your company, what hourly rate is so low that you will not believe what I promise to deliver is possible or true? A rate that is so low you expect poor results.

- Secondly, let's look at it from the other side - assume now that my service is excellent and that I overdeliver, and you would become a very happy customer. What is the hourly rate that, despite the benefits, is too high and would prevent you from engaging me?

After talking to 25 companies, you average the results of these questions and get a range. A low range you should not go below, and a high range you should not go over.

For those who want to learn more about setting prices and rates right and stop leaving money on the table, google my name.

Per Sjofors

aka "The Price Whisperer"