Sure, I had a similar first reaction, but thought about it. If you have skills but haven't yet developed a deep-enough client base, you're in a quandary. You can't bill for $10/hour, or no one will take you seriously. You need perceived value, so you have to quote some reasonably high rate, even if you case-by-case discount it or work gratis.

(At least that's how I imagine it must work. I've never consulted.)