my old boss set our prices based on margins that would allow the company to pay off all of its debt in a set period of time, given wildly optimistic sales projections. The market did not agree with him. Interestingly, as he raised prices, sales dropped. He felt that this was because our sales reps weren’t working hard enough, and our service was lacking. His proposed solution was to raise prices a little bit more to make up for the revenue shortfall. There are costs to being stupid.
What is even more fun is the guy who prices to lose money on every job planning on making it up in volume.