Hourly rates undervalue consultants. It is a simple price based on quantity that we place on the front of customers, and have nothing to do with value, even more with relationship.
There is an awesome book about that. [1] It tells you how to set the right price and the right relationship with a customer. The philosophy is: firstly to show them the value you will provide, secondly to be able to set the right price, and thirdly the fusion of both with the contract. At the end, it is not a question to set an hourly rate and count the hours; it's about how much value you can give them, and set the right price. Then consultants build a contract with rules that reflect that (and protect them).
You have a lot of explanation inside with different chapters. It is a must read for me; even just the chapters that explain each ways to set price are a gem. You can easily adapt it to any business.
It is also similar to an post on HN some weeks ago. [2]
There is an awesome book about that. [1] It tells you how to set the right price and the right relationship with a customer. The philosophy is: firstly to show them the value you will provide, secondly to be able to set the right price, and thirdly the fusion of both with the contract. At the end, it is not a question to set an hourly rate and count the hours; it's about how much value you can give them, and set the right price. Then consultants build a contract with rules that reflect that (and protect them).
You have a lot of explanation inside with different chapters. It is a must read for me; even just the chapters that explain each ways to set price are a gem. You can easily adapt it to any business.
It is also similar to an post on HN some weeks ago. [2]
[1] http://www.amazon.com/Value-Based-Fees-Charge-Youre-Worth/dp...
[2] http://sixrevisions.com/business/earn-more-on-projects/