It sounds like you've already been checking out your competition, so would aim to pitch your pricing around that point. In our area in Joburg, we find Smart Pricing is too low as well so we avoid it.
When we started out we were also concerned about setting the right price from the start - however we learned fairly quickly that this is in fact a continuous learning experience with lots of experimenting... So you will likely start to flex your pricing as you get into it - and discover whether you are busier on weekends or weekdays, how seasonal your area is, and of course keep an eye on any festivals or events that may present opportunities to increase pricing.
Unfortunately it's not a straightforward answer - which is why (for example) hotels have complex systems and dedicated staff to get the pricing right on a day-by-day basis.
