This has been a debate I've 'internalised' - popular term currently, and externalised with a few close friends both in the creative industry and in others. One friend who also now happens to be a client said "Dude, your rates are too low. You could be charging a lot more - well, charge others a lot more."
My response was along the lines of "I'm trying to build a business and an extensive portfolio", but a concern is if I price myself too cheaply will that lessen my worth? And how do you work out what you have to charge to break-even or better yet, get ahead? I'd looked at what larger firms were charging but this was confusing, nothing seemed clear cut. I was privy to a conversation recently where the comment was made that a merchant could make twice as much markup on the same service from their outlet in Marlborough as they could in Nelson. This I don't agree with at all. I understand the basics of supply and demand, but this feels a bit shonky."Oh, you're calling on a Blenheim number, so that'll be..."
Call me old fashioned, but I believe in being upfront about my rates. 
Phil (back9design) sent me this link, it's a good tool for working this stuff out. really useful for any freelancers or independent creative types out there.

Computer hardware and software cost a similar price to what my electrician buddies have loaded in their vans and needs updating more frequently than their tools. My camera's worth more than my car and will devalue at a similar rate.  All things to consider when costing your time, but the first priority surely must be  to grow the business, therefore rates have to be attractive but also sustainable.  

Here's a little video I've posted before on facebook but it has a message I like to remind myself of and share with anyone who creates anything themselves. 

And this next video, again from Derek Sivers, pretty well sums up my intentions for Aeon Design. I bought Dereks book a while back which isn't so much a self-help business book, it just him explaining how it worked for him, you can take what you want from it. 

Many of you will by now have used Skype and experienced the lag and dropping out of calls... but hey, its handy for free calling- good for group calls- screen sharing and video is all great when it works. But for voice calls (incoming and outgoing) it's not quite up to the standard you'd want to rely upon for business right? I've gone through a long list of alternatives and trialled many of them fairly thoroughly, hoping to satisfy my interest, which is not paying over priced calls and line rental to Telecom NZ.

Voice over IP (VoIP) has been around for a while now but with mixed results. My current system has been working faultless (touch wood) for 3 months now, and it is significantly cheaper than a 'real' telephone line  
and I don't get any calls from pesky telemarketers or worst still, those cons trying to get you to allow access to your computer.

Currently my VoIP line rental costs $11.50 per month, with that I get a local phone number, I get 2000 local minutes (good as unlimited), I also get 200 minutes national/international minutes - so calls around NZ, and much of the western world are effectively free (up to 200 mins which is a fair chunk of nattering). And it comes with all the trimmings, Caller ID, 3 way calling, Voice mail, Caller tunes -endless customisation. In fact, there is so much it can be a little overwhelming if you're not a tech-head. 

I'm about to change this up a notch to $34.50 a month, which will give me 1000 national/international mins, 4000 local mins and 100 mobile mins, plus a second line which will be toll free (my 0800 62 6666 is being ported across). The toll free line can draw upon the free calling mins. Yep, to some of you this is probably very dull, but I know some of you are fizzing at the bung reading this!

Who'll benefit most from a setup like this? Anyone working from home for a start, and espcially anyone like myself with naked broadband (internet without a phone line).

If you are a tech-head, even just a quasi tech-head or a part time geek click read more for a complete run down on how to hack your Vodafone (Huawei) router so you can use some of the locked out features, and plug your corded and cordless phones and have them work like they're on a POTS (plain old telephone system)