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Conventional wisdom dictates that you should discount to get the business at any cost. This article suggests that you in fact should be raising your prices instead and focussing on your most valuable customers instead.
Full Economic Costing Of Professional Services
The price at which a contract is sold is often determined taking into considering how badly the contractor needs the business and how much it is thought the client is willing to pay. In order to deliver these services at a profit, it is also necessary to understand the true cost of delivering those services. This paper looks at some of the "hidden costs" of doing operations and proposes a model for "Full Economic Costing" of a company.