Consultants who charge far below market rates risk looking inexperienced. If you're solving real problems, price your work near industry benchmarks, not at $50 an hour when competitors charge $150 to $200. Buyers judge credibility by what you charge.
Beyond that initial phase of having a few clients, you really have to think of pricing completely different to what might come to your mind. If you've differentiated yourself and if people see the value of what you have and you're solving real problems, not every lead is going to be price sensitive. Some will be. They like to haggle and they like to get 5 proposals and go with the least expensive. But if the going rate in your industry, let's say it's $200 an hour, let's say $150 an hour, and you go in and you present yourself as this highly qualified consultant and you price your services at $50 an hour, I can tell you that a lot of buyers will put a big question mark.
