I got an email from Chris, one of the visitors of my website. Chris asked about pricing, how to calculate the hourly rate for your services. When I responded my letter was big enough to be considered a small article, so I decided to post it here, so others would benefit from it as well. So here it goes.

The pricing question is a tough one. I myself have not figured out completely. But anyway I will try to help you out as much as I can at this point. Pricing is not only your compensation, but it has a few other sides - marketing and growth. Compensation is simple - it is price of the materials, rent, utilities (and such) and time you've spent on providing the service (and/or salaries you pay). So after that you are square - no gain, no debts. As well you can add deprecation of your equipment and preivious education time/costinto this category.
Then the next simple to explain is the growth - you have to move forward and grow, education as well could be here (depends how you look at it). The growth is profit, which you use in order to expand your business, buy new and better equipment, learn new stuff, train new assistant, and such.

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