Great feedback guys, yeah ZAP I most definitely relate to what you said !
One downside of going down that road is not only will you work for the minimum wage (or worse) but you’ll burn out bit by bit and the quality of your work will suffer. In the end, you loose. I know I had to bite this bullet since I was totally new to this business and needed work to prove myself (not so long ago I was a total quality consultant, my major is business and administration

).
One thing which makes it easier to defend your prices is :
1) know the value of your work for your client : Of course it’s really hard to define how much added value a well thought out website will bring to a client : you can’t reasonnably estimate a figure, but you can for sure use a few things. First, having a few studies and figures handy about the internet market can help. Second, compare : something I often do is, show them their competitor’s websites. It helps when you can offer ideas to improve on those and go the extra mile.
2) know the time, money and skills you put into your business... and make it clear to your client I tried a few time tracking software, but the one which really got my attention is
Billings which handles time tracking but invoices as well...currently testing this. I still wait for the release of ActiveCollab 1.0 (already use 0.7.1 for project management), which include a time tracking tool to see if Billings is necessary or not.
It’s really important to keep track of time spent on projects. Lots of small tasks add up to real significant time spent ! Start measuring and you’ll see you spend way more time than you thought on a project...