ECN Forum Forums General Topics of the Trade Business Related Discussion Know your costs?

Now it makes more sense...

Different facets of the industry probably require different "pricing techniques", I'll say.

Knowing your costs is important to all of us, and must be considerd, but knowing your competitions costs and prices is equally important on my end. I can't go overboard on my labor amount, and stay competitive. I can be higher with no worries, but that amount can't be excessive. Most of my customers are looking for someone who is "in the right price range" for the area.

Dnk....

Dnk,

Try to find some way to set yourself apart besides price. There will always be someone that will be cheaper or willing to cut their price too easily.Why should you let someone that may not know their costs dictate your rates.

Is everyone in the same price range delivering the same product and service? Does your competition have the same education and ethics as you?

Low price is a good way to run your business if you want to win the race to bankrupcy.

Dave

If your competition has less overhead and lower costs than either you're spending money needlessly or you're competing for different markets. I do from small to large commercial, small industrial and I have a guy doing resi service full time but I can't compete on price with cottage work because that's not the market I'm after.