Please help with the following question and a provide detailed explanation as mentioned. "You and your two roommates are starting a pet grooming

Please help with the following question and a provide detailed explanation as mentioned.

"You and your two roommates are starting a pet grooming service to help put yourselves through college. There are two other well-established pet services in your area. Should you set your price higher or lower than that of the competition? Justify your answer. 

Make sure to consider two key factors: value provided and perceptions of quality."