Many small firms, without ever analysing it explicitly, end up positioned implicitly at a price level — often the lowest they can manage so as not to lose work — having never deliberately assessed whether that is genuinely sustainable for their cost structure.
The risk of competing on price alone
Competing purely by lowering prices works only while there is margin left to compress, and over time it erodes the firm's capacity to invest, to hire, or simply to survive a setback. It is a fragile approach, not a sustainable structural choice.
What justifies sitting higher
More dependable delivery times, better build quality, technical advice others do not offer: these can all justify a price above the average, provided they are communicated explicitly to the customer rather than taken for granted and never mentioned in the negotiation.
Understanding where you really sit
Comparing your prices with those typical in your local trade, not in the abstract but on comparable products, shows whether you occupy the lower, middle or upper band of the market — and whether that position is a deliberate choice or simply the result of never having examined it.