Earlier quoted context omitted.
I don't know where you're located, but $60/hr seems insanely low. Annualized as a full time job that's $125k/yr. not terrible, but quite a bit less than what a good developer can make as base salary at a tech company. But that tech company job comes with benefits, paid vacation, stability, and possibly equity and bonuses. Plus the freelance gigs are rarely actually full time (even if you have enough clients on a stea…
I absolutely agree. For freelance/contract work the price should be about double expected base salary. First of all because agencies get away with charging that much so you're just undercutting yourself needlessly unless you join in. But secondly because there are big costs; liability insurance and software licensing being some of them.
Perhaps they deliver a different sort of value than an individual freelancer? Having a larger staff, having multiple people with different expertise, separate billing/financial folks, admin folks, etc. They provide a different set of services and customer experience - some people want/need that, some don't, but just because agency ABC is charing $200/hr doesn't mean every else can "get away with that" as well. Just being able to have 4 people work simultaneously on a project may be worth the increased pricing for some clients.
Liability insurance isn't that big a cost, and unless you're focused on some really niche industry, "software licensing" probably isn't that big a deal for an individual freelancer. I'd be surprised if even with multiple systems, those combined costs are more than a couple thousand per year (much less for most people I know).
Health insurance is going to be a far bigger expense than almost everything else put together for most folks.