its just like what lawyers do. I had i lawyer set up a s-corp for me for $750, which he said was cheap.
My brothers friend is a lawyer and said he would have done it for $150.
Its just easy paperwork, but every other lawyer just charges $750-$1000.
They charge that much because they can get away with it.
They charge that much because they have to cover their expenses off their billable time. That means that they have to pay for their rent, their marketing expenses, their staff, their office equipment, their vacation time, their health plan, their pension contributions and their taxes off the revenue they pull in from client fees.
Assume 200 working days per year (365 days subtract weekends, holidays, sick time and a modest vacation) @ 8 hours per day. That's a total available hours for billable work ==> 1600 hours.
Assume our lawyer wants an income of $100K per annum. Less than that, he might as well close up shop and get a job. Given his overhead, lets further assume that revenue of $200K will provide that income.
If he can bill out all his 1600 hours, then his hourly rate could be $125 per hour. If your lawyer spent 2 hours interviewing you and filling out paperwork, combined, the bill would be $250. Not far off from the rate your brother's friend would have charged you.
However, anyone in a small professional practice is doing well to bill out 40% of their theoretical maximum billable hours. Most of their time is spent in administrative tasks, professional continuing education, and endless rounds of networking, and other marketing tasks.
So 40% of 1600 hours is 640 hours. $200K / 640 = $312.5 per hour. At that rate, two hours is $625, and $750 doesn't seem so far fetched. Play with income requirements and revenue requirements, and it's not hard to see that same two hours billed out at $1000 -- just pad the process out with one additional hour of face-to-face time, spent interviewing and educating the client.
Professional services is a very low margin business. To be able to make a 'professional income' you have to have the stomach to charge outrageous hourly rates. Once I confronted the reality, I decided that I really didn't want to have that professional service business after all.
That said, let me share some entertaining stories about unscrupulous SEO consultants I found over here: Gypsies, Tramps and Thieves: Ethical SEOs and Search Engineers Narc Out SEO Fraud - Inside CRM