The technique of calculating break-even point is very useful. Develop a break-even point model using a spreadsheet. The model should reflect your start-up costs and operating plan. Of course this is all estimated and theoretical. Pricing Policy See Barclays Bank advice on pricing .
Many businesses fail because of underpricing.
You can launch at a price just below the competition but this has two problems. Firstly the competition may then cut its prices to keep its customers and force your back against the wall. Did anyone say that going into business was easy. Margins and Contribution Being profitable is the reason you want to go into business. See Barclays Bank advice on break-even analysis .