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I agree with CVP and totally disagree with John Crawford. You should consider your local market. Try to find out how much customers are used to pay in your market, and price accordingly. If you are not well established, discount is an option. But dumping the market price is a disservice to your colleagues, and first of all to yourself in the future.
Any book on how to start your business advices not to use “calculate your cost and add a margin” scheme. Go backwards, starting from the market price, take out your production costs, that’s how you’ll get your margin.