Last week, I posted a Q & A on Flat Fee Pricing.  Just as I've finally found the time to respond to the comments, Jay Shepherd does me one better in this thoughtful piece titled Hourly Billing: The End of the Beginning.  Please read the entire piece, but I'll share here Jay's response to lawyers who argue that time determines price (even in flat-fee models) and should be tracked:

The price depends on only one thing: the amount the customer will pay at that time. You can prattle on all you want about costs and budgets and efficiencies and inefficiencies, but it doesn't matter a whit. It's up to you to set a price that is less than or equal to the value the client places on your service. If you do, you'll be hired for the job. If the value to the client is high enough, you should be able to charge enough so that your revenue exceeds your costs, giving you a profit. But don't expect your client to care about your costs or your profits — that's not their job.