Hi, I am the Managing Director of a $100m Technology Company and I consider there to be 2 approaches to pricing:

1. From the bottom up. This is where you calculate the cost of production / the service including all overheads and your time and then add the profit margin you wish to make on top.

2. Top down: What is the market willing to pay for your product and charge that price. For this approach you may need to do competitor and or market analysis or simple trial and error.

In my line of work, we regularly have a significant competitive advantage which makes option 2 far more attractive. By way of example, if I used option 1 with a standard 20% margin added, I would charge the client around $50k per day for our services. Option 2 allows me to charge $150k per day.

Checkout my blogs at www.mrgrowthmentor.com for further insight.

I would be happy to talk through your specific situation at your convenience.