Opportunity/cost: lessons from a plumber

My uncle taught me this thing when I was a teenager about how he used to price his business. He ran a plumbing company. What he did was basically the first 75% of hours were priced at 100%, so the regular rate, but at 75 to 80% [of hours], he would increase the rate; at 80 to 100% [of hours], he’d increase it, and at over 100% of a normal work week, he’d increase the rate even more. And he was super transparent with people about this, like, “I’m really busy right now. I hate to give you this quote, but to do the job properly, here’s what we’d have to price it at.”

From Ryan Holiday: How to Win the War with Yourself [The Knowledge Project Ep. #208] 

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