I follow Matt McGee on Twitter for occasional SEO tips. He expanded on one good article about Small Business services and what they should expect from an SEO expert, except for cost.
I’ve wrestled with the cost factor as well. SEO seems such a fundamental building block, that it clearly could charge whatever the market will accept…but that doesn’t fit well with most small businesses. I enjoy working with small businesses much more than larger ones, so want to charge less, but need to be fair to myself. Matt thinks a very fair starting point is $300/hr, which he discusses in depth on his blog: