For company I am working at, it is acceptable to pay more for even long term consultanst, than to pay market price for experienced developers. The reason explained was, that it is different budget line - HR does not want to "overpay" for emplyees, so consultancy is the only option.

I would so that about 3/4 places I've consulted, I wouldn't want to work full time.

Mostly because they simply didn't know how to run an IT office, and so they couldn't build a culture where good IT people want to work. When they finally get a strong candidate, they end up overloading the poor hire, because finally, it looks like they can get their infrastructure fixed or dream project off the ground.

because nobody wants to be hired for the position. it isn't even about the money, there's simply no candidates - and any candidates competent enough are already consultants and/or freelancers.

I.e. those hires are expensive. I am sure there would be candidates with an offer of $1M/year.

of course, everyone has a number - but also, for that money you'll just hire a consultant and will probably come out ahead.