In pricing a service or product it is general practice to not merely charge for the effort spent and the costs involved + margin but from the value delivered down. As an independent consultant, how do you set the price of your work? What is the process of determining your hourly rate as an independent software developer? If you have one, what is your hourly rate and how did you arrive at that figure? What factors would you take into account.  Is the process of setting a hourly rate only based on balancing demand with supply so that supply (you and your time) doesn't get overwhelmed? When are the good times to raise your rates? Are there projects in which you have had to charge higher than other projects? If so, please cite examples.Do you change your hourly rate based on what kind of development you are doing? (for example, .net programming more, and lesser for php programming)Do you set hourly rates based on what type of business the client is? If so how?If you know of any relevant articles or material on the topic of charging for programming services, please post the same. 
How Do You Determine Your Hourly Rate?
freelancing;business;pricing
In pricing a service or product it is  general practice to not merely charge  for the effort spent and the costs  involved + margin but from the value  delivered down. As an independent  consultant, how do you set the price  of your work?A combination of the above + what the market will take.  Some further answers below.What is the process of determining  your hourly rate as an independent  software developer? If you have one,  what is your hourly rate and how did  you arrive at that figure?I actually have a daily rate.  I start at the market rate for a senior Java developer and then added 'chunks' to that rate based on my unique selling points for a particular client if they are relevant.  So for one client my experience in open source community management is a bonus, another client values my contacts in the Java community as a whole (I co-lead the JUG in London) etc.  I also factor who the client is and what sector they are in (financials will pay more if you have relevant business experience for example).Supply and demand also come into it, as does the length of contract.What factors would you take into  account. Is the process of setting a  hourly rate only based on balancing  demand with supply so that supply (you  and your time) doesn't get  overwhelmed?No it's not just based on that one factor, it's one of many factors.When is it a good time to raise your  rates?When you have demonstrated over a length of time that you are worth more than your original rate and the market/client can afford it.  Remember as a contractor/consultant they expect to see real value for money, it helps to be able to track your work to a tangible saving/revenue/profit.Do you change your hourly rate based  on what kind of development you are  doing? (for example, .net programming  more, and lesser for php programming)Yes, the market will pay differently for different skill sets.Do you set hourly rates based on what  type of business the client is? If so  how?Yes, as above, investment banks and the like do pay more - but they expect more as well, if you don't deliver you're soon out the door :)HTH!