You need to be competitive but you also need to make a profit because otherwise your startup business will never get off the ground.
This is hard because many businesses with large capital resources can afford to charge less than the new startup.
Think of the way that Asda can buy in huge amounts of stock in comparison to the small corner shop.
You also need to possibly get through the first year with very little profit. Can you manage if you are not receiving an income? This is how most startup businesses are at first - working many, many hours a day and seeing very little for their efforts.
Startup businesses are banking on the first few years feeding through to earn them income in the future but you do need to be able to live whilst starting up!
The best businesses look at their pricing strategy again and again - they check what others are charging and they keep an eye on what's going on with special offers and bargains.
Recalculate everything if necessary because otherwise you may find that you have very few people contacting you. You may have been competitive at the start but you need to stay competitive!