Pricing based on cost (with fixed "this is a fair amount of profit") is a terrible pricing scheme. patio11 talks about this a lot. Here's a podcast where he ta

Pricing based on cost (with fixed "this is a fair amount of profit") is a terrible pricing scheme. patio11 talks about this a lot. Here's a podcast where he talked about it (more in the context of B2B software, but many principles still apply): http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-mckenzie-on-why-your-customers-would-be-happier-if-you-charged-more/ http://www.kalzumeus.com/2012/09/21/ramit-sethi-and-patrick-... If you scroll through his comments, you'll see many instances of him telling people to charge more for things and explaining some of this stuff news.ycombinator.com/threads?id=patio11