Price is there not to make profit, but to help create a sustainable market.
A few years back, a friend and I were running an experimental cafe. Our offerings were simple; a meal for about 800yen, a coffee for about 400yen, or both for about 1000yen.
We were running the cafe for a bit of fun, not to make money, so I was ok with offering an even cheaper deal, say the meal came with a free cup of coffee. Luckily, I was wisely advised against that.
Even though we weren’t doing it for the money, the price was extremely important. If we priced ourselves too cheaply, then it cheapens the market overall, and may put a strain on other cafes, or make them run out of business. This is the opposite of what we want.
Competitive pricing builds sustainable markets. Never sell yourself short, it could put you out of a job, or even worse, make you the lowest denominator.
MOUNTAINS OF WISDOM
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