Great question. Tuff question. Many factors to consider here.
My first peice of advice for all local SEO's is to read this
article by Mike Ramsey:
My second piece of advise is to read Ian Laurie's slideshare presentations about "one trick ponies"
here ,
here,
here and his presentations about reporting. Not reporting clean citation profile percentages, # of likes/shares/+'s, or rankings. But rather understanding business goals in terms of new customers and revenue. Reporting that aligns with the bigger picture.
Mike talks about getting really good at something first. For most here that is solid citations, a review strategy, basic on page, or maybe content. For me it organic local. I got really, really good first before moving on to/adding web dev, ppc, etc.
Mike also talks about when he decided to quit working for $200 - $500 per month and moved minimums up to $1500 and $100 per hour. I'm guessing that he had a much more robust strategy and team at that point. The value was higher, the experience was higher as well as the credibility.
I use to build sites for 2k. Now I charge 5 times that. But the deliverables are also much greater. Better design, better copy, call tracking that doesn't f%?& up rankings, remarketing, ripping fast code, servers etc.
I use to take on local seo campaigns for $300 - $500. Now I'm interested in clients with budgets for seo, ppc, display, and content. I use to do most of the work myself. Now I have half dozen people involved in each campaign, each with bills to pay and mouths to feed.
I was able to start charging more when I could tell my clients/prospective clients things like "our cpl average for dental - $42, cpa - $87, and roas - 8 to 1.
I believe that in the
long run dollars will follow and stick with value. If you're charging $500 mo and the client is earning $4000 cash from those efforts + lifetime value of clients, you won't have a hard time raising rates or waiting for those willing to pay. If you don't know the numbers that matter (cpl, cpa, roas, clv) it will be very difficult to decide how to price services.
Selling citation clean up, or blogging, or websites will quickly put you in position of showing people your "service menu" and prices. Then you will find yourself in bidding wars with other service menus. Aligning motives with clients and understanding your real bottom line value will completely change how you price your services.