*sticks finger in mouth*
*Trying to feel the direction of the wind with wet finger*
The advice for profit margin is different depending on your industry and who you're asking, but here's my two cents:
If you're selling physical goods, you generally want to sell the product for at least 4x – 6x more than what you're buying it for.
When it comes to digital goods (software, information, SaaS) it's not unusual to have a 20x – 100x markup.
But look at your industry. Even if you don't have any close competitors, you're probably operating in an established niche or area of business.
Are you selling to the big dogs, large enterprises? Or are you selling to the solopreneur?
Solopreneurs won't afford paying top market prices + a 6 months consulting retainer.
Price it based on who you're selling to, and based on what they need.
I once heard some pricing advice from Ramit Sethi that totally blew me away:
“You don't want a too high conversion rate"
…and this can sound way off at first, but when you think about it, he's totally right.
Business is about balance. A balance between you getting paid what you're worth, and your customer paying what they think whatever you’re selling is worth.
If you're selling brand new Volvo XC90's for $5000 – you're going to sell a lot of them.
Volvo XC90 retail for at least $60.000 and as a result, people are going to flock around you because they're getting the deal of a lifetime.
You are going to have a way too high conversion rate – and you won’t be able keep that up if you want to make a living.
You need to raise prices to lower your conversion rate.
Ideally, you want to have a 2% – 5% conversion rate.
Because at that level you're not giving away too much value, and your customers feel that they're buying something valuable.
My suggestion is that you adjust your pricing until you convert between 2% – 5% of your leads into customers.