Kat Rasmussen wrote:
Not true. Price fixing is when everyone agrees to charge the same price, thus eliminating price competition. Since there is no attempt at collusion to charge the same price, there is no price fixing.What Rick says is true -- it is illegal for US businesses (including individuals who freelance) to discuss rates with members of the same industry. The legal term here is price fixing, and it is taken very seriously, regardless of the intent of the discussion or the context within which the discussion takes place.
This discussion is more focused on what the market will bear, or how much we CAN charge, not should charge. If the average going rate for a particular project with a particular level of experience of the Web author is 3.5K, and I decide to charge 3K, I don't hear anyone suggesting I shouldn't since some price competition is good for everyone. What is suggested is while I can charge 500 if I want to, but I shouldn't because it puts artificial pressure on the rest of us, which isn't the same thing. What sometime happens, and which is a problem, is that sometime a company starts selling something at a loss to force out the competition, only to raise it very high later on when there is no more competition.
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