The right price is very important for every freelancer as if you will price your services to high you will not be able to get any client and if you are getting low payments for your work you will end up in loss of your interest in the work. The best way of setting up a price is to get a project and then decide the price at the level at which both the parties you and your client can work happily.
To begin the first step is to make a base line or the minimum amount that you need hourly as your reward so that it will cover at least your cost that will be your break even baseline. Then understand that earning below this limit will end up in losses to you and you will not be able to get any income from that work. After this first step it will be a lot easier for you to determine a minimum amount of profit that you want to make from your business and also keep in mind that when you will set your price like that you will be able to compete in the market also. Try to be honest while preparing this baseline as if you will charge more you are doing nothing but to make fool of yourself as it will result in a long term hurt to you.
So honestly make a baseline below which your business will got killed. This cannot be accurate as it is a guess but this guess will keep on improving by your experience. After making a base line the second thing comes which is the profit which is also a necessary for you but it’s not about over charging your client. It’s a reward given to you for the provision of your services.
Your quality of service and price will create a value for you in client’s mind and which mean that your customer service, work and rate of work are better than the other competitors. So profit is simply a percentage that you want to earn over your baseline limit. But first prove that the price is to be worthy of competition to yourself. Surely, no one can stop you from charging 100% over base line but it will only hurt you as this will end up in a very high price so you will receive fewer offers. So try to be realistic while setting profit percentage that a competitive price will help you in getting more work and more respect in the clients.