FSP 1.1

What are you worth ?

If you undercharge today, it will be very difficult to ever ask the
larger amount necessary to stay in business.

Pronto. Unless the delta is small, it's very difficult to raise fees
substantially once you set a rate. Here's a trick:
If, for whatever reason, you think you need to lower your rates, don't. Use
your standard rate. But give the client an *explicit* break. Literally. Tell
them that "as a sign of goodwill," "since this is our first project." "as a
long time customer," "as a prelude to a larger project" etc., you are
providing services worth $XXX without charge. Make sure they understand that
this is a one-time , tied to an explicit cause and in expectation of
future business. And *always* get something in return for your largess: more
flexible hours/deadline, more freedom in execution, promotional rights,
intro to their clients/departments, reuse of code, access to their services,
etc. In other words, make them think there is an exchange of considerations
going on here, as opposed to you merely giving up something worth money.
...
The scenario might be more complex. For example, say you have one client
who is willing to pay a sizable fee. You might be able to undercharge
another client and in the end you still make a profit.

That may prove to be short sighted. As a client I'd be furious if I find out
that I was paying substantially more for the same service and, in fact,
subsidizing my competition. Also, the client you're undercharging will most
likely expect you to continue to undercharge. If you happen to need the
money at any given moment (regardless of anything else), then, obviously,
you should do whatever it takes to secure payment. But as a career move,
this is risky. Ziya Oz