One of my father's best friends was a jeweler. He was struggling with what to charge, and how to increase his business. My father told him to double or triple i

One of my father's best friends was a jeweler. He was struggling with what to charge, and how to increase his business. My father told him to double or triple it. At first he was very hesitant. This seemed nuts. Yet, my father asked him how much a $500 ring was worth to a consumer? Then if you put a $2000 price tag on a ring how much it was worth? When it comes to some things, the price equals the quality. For jeweler this is especially true. Jewelry is something you're trying to impress with, and a $2000 ring is a lot more impressive than a $500 ring. In a certain way, its an intangible, just like programming. A $25/hr programmer sounds probably pretty green to me and not that great. Yet, someone who is charging $150/hr must be pretty damn good. Of course, if you can't deliver the goods, none of this works, but assuming that you can competently deliver, raise the prices. You'll compete more that way than trying to lower yourself to beat the lowest guy on eLance.