Chris, I think this is a fantastic article and it has inspired some great discussion. And Jasmine, thank you for plugging our "What Should I Charge" webinar at http://www.howdesign.com/webinars/webinarpricing.asp
I'm so glad you found it helpful!
I agree with Chris that when you charge by the hour, you may be cheating yourself. As many of you said, over time, you get better at what you do--sometimes a lot better. But if you charge by the hour, the better you get, the less time you spend and the less money you make. Pricing by the project, although more challenging, is better for you in the long run.
I deal with many creative professionals who wonder if they're charging enough. And they probably aren't. I remind my clients that they are not selling their time; they are selling their brain, their attention and their creative imagination- and that has a value that can be difficult to quantify!
More on that here:
http://biznik.com/learn/articles/fees-pricing/what-exactly-are-you-selling
As far as hourly rates- you need to know what yours is. It's one of the building blocks of your price, but you should never reveal that hourly rate in a proposal or in conversations with your client. When figuring out what to charge, there are many factors! You need to factor in your desired salary, overhead and profit. I could go on for pages about this topic (at the risk of promoting myself, I'll just mention that I actually do in my new book, The Designer's Guide to Marketing & Pricing, co-authored with my partner, Peleg Top).
It deals with the nuts & bolts of running a creative design business, and I think it's particularly helpful for anyone who asks, "Am I charging enough."
Chris, thanks again for a great article.