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I want to get inputs in payroll pricing for self employed who normally hire 1-3 employees and pay them weekly. For a small market, how much on average would charge to process payroll?

Call Paychex, ADP, and similar national chains and ask them for prices.
Also price out Gusto or similar self service.
Then your price should be somewhere between those 2 if you want to attract payroll business, or double the national chains if you would prefer not to have payroll clients.

In my neck of the woods for a small business (under 50 ee) the average is $50 per month plus $5 per employee for weekly payroll with direct deposit only. They also throw in the 940 and 941 forms partially filled.

Most outfits offer a website where HR or business owner have to enter employee data and hours each week prior to weekly run. Changes after the run cost extra. Very few now accept fax or voice call hours updates.

We charge $179 per month for up to 10 employees.

Includes all tax deposits and filings, mailing out w2s, and help with insurance audits.

We don't run payroll or write checks, we provide an interface through a 3rd party software processor like intuit or patriot.

Don't be too cheap, its a lot of work sometimes.

I do not want payroll unless I have other work, so I have fairly high fees. Minimum of $150/mo, but $25 per check, $40 for payroll tax payments, $150 for Q1-Q3 payroll reports, $175 plus costs for Q4 reporting. Anything outside of those specified fees is $150/hr. I also charge $150/year for payroll software.

So, for your client example: 3 checks per week, I assume monthly payroll liability deposits = 12 checks per month + $40 for liability payments = $340/mo on average, with some months being $500+.