You're absolutely correct. I had to generalize to make the point, but you have identified one of the flaws in my generalization.

The other flaw is that the amount doesn't really matter. What matters is the pain that it causes the client. Many large corporations can and do write large checks for consulting that they never intend to follow -- for various reasons. Just because the amount seems big to you doesn't mean it's even noticeable by the client.

But still, rates are a signaling mechanism. Even with higher rates, there's still a lot of careful screening you should do before accepting a client. Assuming you're in that position, of course.

There's a whole school of thought that says that even when clients are playing political games with consultants, it's still possible to have positive influence. But that's completely off the track from the simple point about people accepting advice. People are more likely to accept advice if it is done as part of some reciprocal arrangement or trade. Free advice is mostly worthless.