It appears to be a common practice. A business owner figures out the price of labor and materials adds an “upcharge” and VOILA – they have the price for their product or service. It is equally common for them to know that their competitor sells the product for $25 a pound and they meet that price. Or, their competitor makes a product for $25 a pound and they meet that price. No matter whether it is a product or a service the price strategy is the same…I will sell at the same rate as my competitor because that is the market. That approach will ruin your business and easily could be decreasing your profit.
Why am I saying that?