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How do you know when you are charging too less

Anil Dash has some intersting advice on how to price one's goods and services:

"I think I came up with my best suggestion today, and it involves only two simple steps:
1. Slap the client in face.
2. Tell the client your hourly rate.
If the person looked more shocked, horrified, offended, hurt, saddened, or wounded by the slap in the face, then you are still pricing yourself too low."

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