>>I know that everyone's been mentioning the cost of living, and the fact that you need to plan accordingly and charge accordingly for your needs. But there's a supply-side factor, too -- companies are more or less willing to pay different amounts depending on their geographic location. This is due of course to the cost of living, as well as competition, etc., but it's important to point it out. Don't just figure out what you need to survive in your city/town/country, but try to learn as well what the companies are used to paying. Also, the type of business will matter a good deal, so take that into account. Otherwise, you may end up charging lower than you could have.
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>>For instance, in New York City, where I live, the cost of living is quite high. But, many companies I have worked with are used to paying much higher rates than elsewhere in the country. In addition, a financial services client could pay a lot more than a small non-profit.
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>Vim this is not true.
>Companies are profit maximazers and try to pay as less as possible.
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That wasn't exactly my point... I was trying to say that when figuring one's rate, it's important to take into account not just what you *need* but also what companies around you are willing to *pay.* It's important to think through both.

I agree that a company will always pay as little as it feels it has to... but some companies feel that $50 an hour for programming is a lot, while others are much more used to $125-$175. If they have been in this business long enough, thney learn that, usually, you get what you pay for.... And that may impact their sense of how much they will have to pay for a quality product.