Setting Up Shop as a Consultant

Hi;
A company wants to retain me as a consultant for web design and Internet 
marketing. Without discussing pricing, how do I go about figuring out how 
to bill these people? I'll determine what my time is worth, but...
**Do I sell them *blocks* of my time?
**Do I write up a proposal of how much of my time they need? (Frankly, I 
have no idea!)
**Do I set up a retainer?
This is *all* new to me. Your advice is appreciated.
TIA,
BenO

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