We’re renovating some office space and need to paint the inside walls prior to moving in.
We obtained a quote to paint the space a couple of months ago in the amount of $2,450. As we negotiated terms and leasehold improvements, time marched on.
The market has heated up and demand for painters has increased. We got a recent quote from a different contractor for $7,566. Almost triple!
Apparently, some painters believe that price is established using supply and demand. Maybe the oil cartels can do this macro-economic pricing policy but it doesn’t apply to the local painters.
Here’s the problem with stupid pricing – it decreases customer loyalty and encourages new entrants or do-it-yourselfers – which will decrease demand (according to the painter’s theory). This will further decrease prices.
We’re either going to hire some students to paint the place or ask the landlord, who is an honest and great guy, to paint the place.
Supply and demand don’t set prices for our services. Value sets the price.
Focus on value and the price will take care of itself.
Copyright 2010. All Rights Reserved. Phil Symchych
