Grumpy said:Knowing the going rate is important really. Yes your price should be based on your own overhead and expenses but the going rate will let you know if your too high, and you may need to restructure. Knowing the going rate will tell you if you are too low and under bidding yourself.
Grumpy said:Yes Mark in a way. If his overhead is way higher than anyone else he will lose jobs on price alone. If his overhead is way low and he is the lowest bid, he might as well raise his price a little bit and make more profit.
Yes Marketing and selling is very important. Infact I would say marketing and selling is AS important as being able to bid but what is also equally as important is knowing your compitition. I know if I am bidding against various companies I can raise my price because they charge an arm and a leg, and sometimes a few fingers. I know when I am bidding against some other low ball companies I have to adjust my presentation. I tell the customer upfront "I wont be the cheapest and here is why... "
All I am saying is knowing your compitition will sometimes open your eyes to your own strengths and weaknesses.