How did you decide what to charge for your services or product?

Is it based on your location?

Your experience level?

Business model where it's to do with the number of bums on seats and then your pricing structure really starts to make sense?

An average of your competition?

After a fair bit of initial faffing around, aimed at the lower end of the main competition.  Fairly soon after raised prices to be mid-upper end relative to the competition which didn't seem to have any adverse effect on sign ups (didn't raise prices for existing clients).

Pricing's never easy, especially for service type businesses.  The traditional "work out what it costs you then add on a bit" doesn't really work when you're predominantly selling your time.

For us it is relatively easy as we manufacture a product, and therefore know what it cost to build. So all we have to do is just decide on what margin to add to it. And then if we want to apply any discount to customers.

The discount can change also with what other companies we are competing against if it’s for a tender etc.

To be honest most of my prices are industry standard, middle of the road level.  I am not a bargain basement option but I'm not top London firm prices either.  My hourly rate is a lot lower because I calculate it based on experience and overheads and I manage to keep these low by having a virtual office.