Whenever a conversation comes up about my freelance projects, people would often ask, ‘How much do you charge for a website’? When I was just starting out, I used to charge less than an average, because I just wanted to get the job. However, I decided to review my rates after reading an article somewhere on the web which says one should not charge too little than all his peers in the freelance industry because it will lower the standard market rate. It is one of the most eye-opening articles for me because you don’t want to set an inaccurate expectation and sell the industry that you work for short. I have also learned that when you are charging for a project, it is ok to charge a little more if you are sure you can deliver the result in a shorter time than most of your peers could, and vice versa - charge a little less if you think you are going to take a little more time because you have not done a similiar project before. After all, experience and efficiency should be valued.

And here is a great story:

Legend has it that Pablo Picasso was sketching in the park when a bold woman approached him.

“It’s you — Picasso, the great artist! Oh, you must sketch my portrait! I insist.”

So Picasso agreed to sketch her. After studying her for a moment, he used a single pencil stroke to create her portrait. He handed the women his work of art.

“It’s perfect!” she gushed. “You managed to capture my essence with one stroke, in one moment. Thank you! How much do I owe you?”

“Five thousand dollars,” the artist replied.

“B-b-but, what?” the woman sputtered. “How could you want so much money for this picture? It only took you a second to draw it!”

To which Picasso responded, “Madame, it took me my entire life.”

SOURE: http://eisabainyo.net/weblog/

and what is "average" and by whose standard(s)? Just curious.

In general, I would say, even if it means staying for a while without doing a site, if you know what you are doing, charge nothing less than $800 for a 5-page site.

However, I decided to review my rates after reading an article somewhere on the web which says one should not charge too little than all his peers in the freelance industry because it will lower the standard market rate. It is one of the most eye-opening articles for me because you don’t want to set an inaccurate expectation and sell the industry that you work for short.

Sounds like pure capitalist yarn to me,
But, I can relate.

free market capitalism is the best path to prosperity (i bet olushola will come back with a post about why, if it's so good, the world is experiencing financial meltdown, for which I have a response ready to immediately respond with )