Yes thats one of the exact reasons. "They work out how much you are on Per Hour".
They dont always take into account your over heads like insurance, travel time, use of chemicals, wear n tear on machines, your van. The list is endless.
We priced a up for some landscaping work the other day. The price came out around the £30,000 mark. They also asked how long it would take, how many staff on site.
They in there own mind no matter wether the customer is residential or commercial all have some price in mind.
1. A Budget
What they want to spend
2. A reasonable figure
In their budget the generally have a +- figure this allows for them to assertain a reasonable figure including profit.
3 Time scale
This gives then their formula - works out your day rate or hourly rate
4 Averge cost of materials
All jobs have materials generally - so they have a guide for this. No matter what industry you are in they can get a guide to how much this comes to. Either in per square metres or feet per bottle.
Depending on the job they work out if the price is reasonable to the skill level that is required.
Cleaning - skill level generally very basic
Electricial - Skill level - High - people could get a shock or even fatal
Doctors - 7 years study etc skill level very high. You save lives also have whats known as respect.
The final judgement is if they like you. if they like you, you are on to a winner and even if you were a little higher they are more likly to favour you.
ill add here a few months back I needed a new boiler. We had an old back boiler. So needed it relocated.
We called in British gas. Why? They are a big company. Name brand. So they should know what they are doing.
Price - £5000.
I already had a price in mind. I also worked out what the boilers would cost as well.
Now I had a price in mind of £2000. I also told them this after the quotation.
I also asked how long they would be on site. Reply 2 days.
I got another quote in from a local one man band. Great service. £1700.
I said yes even before he finished printing the quote. Onsite 2 days.
Some companies just RIP you off. I also do not need the extra garbage about "Our service is better , support 2nd to none"
I get this rubbish from cleaning suppliers. I know when I am being ripped off.
Dave