Jef Lippiatt Owner at Startup Chucktown
I think the best way to figure this out is to test with actual or potential customers.
Neil Steggall Partner at Wardour Capital Partners
I agree with Jef''s comments but would add that a common error made in pricing products and services is a failure to understand your fixed cost structure (including your anticipated wages) and accounting for this when building you costing and quoting.
If when all costs are calculated you are above the market ask:
We often find clients say "oh our customers just won't spend the money". Quite often the client is trying to sell what they perceive their customers "need" whereas long term research shows both B2B and consumers buy what they "want". It is often only a small, emotive change yet the difference in meeting wants is usually the difference between profit and loss.
To understand this better check out this youtube clip re Apple: http://www.ted.com/talks/lang/en/simon_sinek_how_g...
Another good source is Peter Drucker re satisfying customer wants.
Hope this helps,