I see a point in charging per market, and covering time and material in business. I also see a point in not underselling yourself.
But, isn't this your first entry into being paid for your photographic services? You have no prior experience, right? By charging per market, you are essentially saying you can produce products as good as the "market." I'm not saying you are not as good as the next guy. Perhaps you are better.
But, if I were a potential customer and if I have to front the payment, I'd be very cautious in selecting someone totally new with no track record. Quite frankly, I'd go for someone with experience, reputation, and plenty of great looking and impressive samples.
How about working for someone part time and learn the business first? How about setting your price to just cover your actual cost, but not 100% of your time and consider this practical training/experience? When people pay money, expectation is made.
Most start-up businesses barely cover the cost and won't even break even. I see your enthusiasm, but I think, going head first into this and thinking of profit or breaking even every time may be premature. If I were to hang my name as a professional photographer and start collecting serious money, I'd be sure I know my skill, business, and market - not to mention knowing what to do when problems arise.