This is address to those who offer services as a product.

It's quite easy to price a tangible product because you have something to start with like the buying cost or manufacturing cost, etc.. But when it comes to service how do you determine your "selling price".

Do you sort of spy your competitors and based your price a little lower or higher. Or do you compute by the number of hours that you will devote in delivering your service and multiply it to $10 or $20 depending on your hourly rate? (I hope you get what I mean. )

By the way, the service I'm talking about is Wordpress blog complete set-up (including content).