Is there really such thing as charging to much

Status
Not open for further replies.

Coppersmith

Senior Member
Location
Tampa, FL, USA
Occupation
Electrical Contractor
I'm so glad to read this thread. Usually it's some guy charging insanely low rates and me trying to convince him he's losing money. Being the most expensive guy in town and still being very busy is exactly where you want to be. Pure economic theory says "charge what the market will bear". That means keep raising your prices until your incoming business levels off.

If you want to relieve your guilt, go ask a contracts or divorce lawyer what s/he charges. It will be $300-500/hr or more. Is the service they are providing more valuable than ours? Accident attorneys take 33-40% of multimillion dollar payouts. Do they feel guilty? Probably, but you don't see them lowering their rates.

Instead of racing to the bottom, let's all decide to race to the top.
 

Coppersmith

Senior Member
Location
Tampa, FL, USA
Occupation
Electrical Contractor
What I heard is that you raise your price 10%, wait 6 mos, if OK, do another 10%, repeat. . .

Why wait six months? If you keep getting business, raise your price daily. All the people who called you are not getting together and comparing notes. Also make sure you are fishing where the fish are. Understand that some people are calling out of necessity and others out of a desire for luxury. The latter are more willing to spend the money.
 

Marshmo

Member
Location
OK, USA
Occupation
Electrical Contractor
Excellent info in this thread. I used to have same worries. If you make sure the customer is getting top quality for top price you'll sleep like a baby.
 
Status
Not open for further replies.
Top