iceemn360 - I am in a similar boat, maybe 6-9 months ahead of you. I've recently launched my "Captured Moments" business, but still have yet to get an LLC. I spend an hour or two with families to capture their moments.
Sample gallery:
Captured Moments by Lori | Albert Family
(don't pay attention to the pricing on these photos, this was a pro-bono thing to launch my business, the print prices are base lab prices)
Pricing is very difficult! As someone already said in this thread, the last thing you want to do is get your name out there as a "cheap" photographer. Your name will get passed around, inevitably. It started for me where I did my friend's low-key wedding for free, and others asked me for my "card". ACK! I created cards the next week!
As an amateur, I started thinking I should charge $50/hour. Travel is something to consider, too. I charged one family $50/hour, but traveled an hour in each direction to get to them! I was seriously underpaid. You should charge an additional fee if you go more than 15-30 miles in any direciton. I am finally comfortable charging $75/hour for now.
Regarding pricing .... Don't use Costco/Walgreens/CVS/etc!! Their quality is terrible!! Especially for a paid gig. I was hooked up to mpix.com and never went back. Their prices are great, and their quality is better. I ordered the same prints through Walgreens, and through mpix, and there was no comparison.
Consider crop ratios. You take a picture, but the client wants it cropped to 5x7 or 8x10, etc. Places like Walgreens/Costco do an automatic-crop and will cut things off that you dont want cut off. With places like mpix, you have much more control.
Lastly, for an amateur who wants to showcase and sell their work ... I just signed up with zenfolio.
Zenfolio | hosting service for photo galleries | a place to learn and enjoy photography Zenfolio | Features and Plans
I signed up for the preium account and it is terrific. I set my price lists, and the customers order their prints right from my gallery. mpix is the lab that produces the prints.
As for print pricing ... there's work that goes into getting those prints ready, usually (post-processing/editing) .. your print prices should reflect that. This is a big arena, so you need to make your best decision. I charge $4.99 for a 4x6, $7.99 for 5x7, $19.99 for 8x10, $39.99 for 11x17.
Here are the prices to have these printed through mpix:
Mpix.com - Print Pricing
So, I pay zenfolio an 8% service fee, plus the lab fee.
Example: 5x7 print
My fee: $7.99
Lab fee: $1.29
My profit: $5.90
8% Fee to Zenfolio: $0.80
Good Luck! It's overwhelming but rewarding