I think that in the long run the customer always dictates what they are willing to pay and what they are willing to pay for. The American Automobile Industry is a good example. For years they thought the public would buy whatever was made. When competition was introduced into the market and they found out that they were wrong. Same thing with the phone companies. If you don't have a lot of competition , it's easier to name your price and your service. If the competition is strong then you must give the customer what they want. The idea is to make the customer believe they want what you are selling. The American people think that they wish to pay big bucks for SUV's ( a four wheel drive station wagon , that doesn't get good gas mileage ). If the hourly rate is high enough then a flat bid will look attractive.
