The Price Is Right? --Dickeson

The "right" price is the customer's perception of value constrained by the competition. It has nothing to do with our "costs," does it? Therefore, it's remarkably silly to spend time noodling with budgeted hourly cost rates in establishing the price of a job, isn't it? Yet that's what a lot of us still do. Why do we do it when it has nothing at all to do with the price that the customer will accept? Beats me. Just habit, maybe our—very own paradigm—way of doing things.