reasonably speaking when I started out I charged too low and often found myself doing 4 times the amount of hours I charged for. I even had a client tell me I wasn't charging him enougn and he trippled the amount I invoiced him and told me to send him a new invoice reflecting the changed.
CHARGING LESS :
- looks like you are not confident of getting the job done
- you will only get the projects that business people find not that important (often these projects are the least fun)
- you will make some competition lower their price (not the ones that get the really fun projects that pay)
- you will make it look as though you are a beginner that is willing to do anything at all (and often some people will take advantage of that)
- if you are stuck in a rut and don't know something you need to know to get the project done you have no choice but to learn it the hard way (books, online forums, google, last minute stress, clock ticking away)
CHARGING MORE :
- you will turn away potential clients
- you will get some people contact you for bigger better projects that might be out of your league (but hey you could also contact people to join you if you get a big project and get a team together that you would oversee)
- you will give off the impression that you are in that business knowing what the heck you are doing
- if you are stuck in a rut and don't have the technical knowledge to finish something you can always hire someone else to finish the job because after all you charged enough to give yourself a little insurance.
EITHER WAY :
if you are starting out do charge less. But if you are really looking to just learn and make a spare buck in the process don't try to compete with big businesses. There is a niche for begginers in the web arena. Imagine if you want that latest book on PHP4 from Wrox publishing. Ask your friend's father if he wants you to build a web site. Tell him that you are looking for something that could bring yourself more knowledge and a little bit of pocket money. Then spell it out for him. You want that book to start with and you want him to give you content for the web site (information regarding the company). You meet on week ends to see how things are going. Do read the Yale web style guide to figure out who the audience is etc... It will help you out.
if you are a veteran of the web charge more. Your act is straight and you can get some of those real deals. Seek your competition and attempt to match their offers or do partnerships with them. For example a design firm that does logos and stuff woulnd't mind stricking a deal with you if you want to subcontract any graphic design to them and they can probably help you out a lot with that. Let's say they charge 600$ a day (common in the area where I did most of my web design) you can ask them if you can get as good as 500$ a day from them. Once you do charge 600$ a day for graphic design to the companies you deal with. Assemble the projects, make sure everything fits together and you could be making a living soon.
I hope this helps. Gary
Haran