I would have to disagree with the argument that he gouged his customer.
He was able to come out with a higher price per hour on the labor which is a wonderful thing to see. But that could have just as easily gone the other way, something could have slowed down the process and his price per hour could have plummeted.
The other issue would be, he had a good run as he stated. Things were in the groove. So he gives the customer a discount. Next year they want the same price, so he gives it to him, and an issue occurs that slows things down even further. Now his price per hour is even lower than he had hoped for.
My feeling is, a price was agreed on. The customer was happy with the product that was given. That should always be the goal.
If someone finds a way to speed up the process, that is good news for his profits. Profit isn't a dirty word, it is the reason to be in business.
But I think a good way to go out of business is to always worry about "only" charging a small margin over your costs.
- Noel |