By figuring out what you expenses are and charging for a profit. Here's how I do it. I figured up my overhead (rent, utilities, phone, insurance, etc.), totaled my COGS, then added a markup and that was my price for everything I offered. You HAVE GOT to add that in or you are not really making any money.
Oh, and I don't market to the free sitting or free 8x10 crowd. They know coming to me that they will be spending a lot more than a chain studio. Besides, I give more time and offer more services than a chain studio does.
Not to mention, the last time I talked with my accountant, he reminded me that I'm NOT a non-profit organization.
