Ben has nailed his answer. Great reply!

I believe in adding a lot of value by going above, and far beyond, the Clients requirements.

I currently have an offer on my website of $500 NZD for a 5 page website. This website would be the most basic website you could imagine, with maybe 1 piece of eye candy thrown in. This site would be uber simple in structure and coding. It would take me 8 hours or less to get this kind of website from initial meeting to completion.

My hourly rate is currently $100 NZD/hour and I am considering raising it.

Don't undersell yourselves. Most of you are actually better visual designers than me, but I am a better business person