I wasn't sure whether the latter firms had found some new pixie dust by now. Good to know. Obie Fernandez has a talk online somewhere about billing where he says something like no one working in Rails should bill less than $150/hour and that he bills himself and his developers at $250 but will occasionally give discounts for various reasons. Maybe I have numbers wrong - just found it - http://www.infoq.com/presentations/fernandez-sales-do-the-hu...

I recommend watching it. Good talk. Takeaway point - always err on the side of charging too much :)