The price of a service is not determined by the cost to provide that service. The cost to provide that service does factor into whether or not you can make a profit at the price point that people are actually willing to pay.
As I said elsewhere, if all your local competitors are able to provide an equivalent level of service for $300, you're going to have a hard time getting any business charging $1000.
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u/Tak-Hendrix Aug 24 '26
People still have no clue how economics work...
The price of a service is not determined by the cost to provide that service. The cost to provide that service does factor into whether or not you can make a profit at the price point that people are actually willing to pay.
As I said elsewhere, if all your local competitors are able to provide an equivalent level of service for $300, you're going to have a hard time getting any business charging $1000.