Originally Posted by
Edwin Santos
I agree completely. However, I believe there is a market for almost everything, including cabinetry. There might be differentiation in services here and there that may insulate one from some of the market competitive forces, but by and large, customers are savvy and rarely willing to grant carte blanche. What I was trying to say is that a good contractor develops a good sense of the market price for his work, and if his operation is more efficient than others, he can confidently operate at the market level or maybe even a little lower and not compromise his margins. I was not intending to suggest his price should be based on his cost in the literal senses, what I was trying to express was that more efficient costs allow that contractor to either command a higher margin, or keep the same margins but with some competitive flexibility in price.
I also agree with you that some % of rejected quotes is healthy. I was also taught that some % of bad debt is healthy also, even though it never feels like it at the time.