If I may interject a paradigm shift.
When two partys enter into negotiations one is offering and the other is receiving. They both have the same end in mind. "What is the best deal I can get". If we change the perspective here, they are both seeking the "highest and best value" from their negotiation.
Case: I recently purchased a business from a friend, he offered 6 months Free hosting AND free domain name registration, to top it off his rates were highly discounted. (possibly the reason he needed out of the business). One of his prospects called me and inquired about the Free 6 months and the free domain. What I said was something like this; "To be very frank, I dont do free. I dont offer free. Those rates are not my rates and to be brutally honest you get what you pay for. I do business class hosting, and you get my cell phone number."
In the time of a 30 minute "how hosting works" he paid 2x the discounted rate and bought the first year of his domain outright. A nice profit for a nice pleasant no pitch conversation.
He received his highest and best value. (infact he asked me if I wanted more money)
I do not state a set-up fee, but there is a premium on all accounts to buy the first year of domain reg outright.
Price yourself. Price your services. Seek those that will pay.
Those that wont pay were not going to be your clients anyway; at any price.
If you talk yourself out of money it will leave you with empty pockets.
thank you for your time,
-DH