|Posted on July 12, 2014 at 3:50 PM||comments (3)|
I had to buy a tire last Monday because It had a rip right to the side of the tread and could not be patched. So I went to Rudy's Tires here in our neighborhood. The gentleman there gave me the price of $90 which included balancing. I thought that was very reasonable considering I have low profile tires on my Acura.
In the past I would have haggled him for a lower price but, since starting my business and considering they are a small operation I was willing to pay them with what they quoted me. The reason why is because I was considering their overhead and profits. Sometimes customers won't be willing to pay for the cost of your time as a service provider. That's okay because, in business you need to target the kind of customers that are willing to pay what you are quoting. In my experience if you underbid because you convince yourself that you need the business then, you are setting yourself up for not only paying yourself a low wage for what your time is worth as a business owner but, that your overhead if worth coming out of you pocket.