What should anything cost?

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Posted by RaiderKarl on May 03, 2001 at 12:47:55:

In Reply to: Re: first calculate your marginal cost then multiply it by something posted by mike on May 02, 2001 at 22:18:28:

I am not down on locksmithing. Its just that locksmithing has got nothing to do with it.

What should anything cost? To answer this you have to enter the realm of economic price theory.

First of all, you need to determine how much it costs you out of your pocket to do the job. You certainly would not charge less than this. And if the client can only afford to pay a very little, or approximately the same amount as it costs you out of pocket to do the work, then unless the client is a she, and very beautiful, and single, and you are trying to win her heart or special favours from her, it is a waste of your time to do the work.

The other end of the question is bordered by what the object is worth once recovered. If it is not worth a lot, then why bother? Leave it submerged. The saltwater and fish will recycle it over time. If it is not worth a lot, then who would want you to recover it? They can just get a new one, whatever it is.

In between these two borders, or extremes, is the question of "the market" or in other words, what is everybody else offering to do the same job of recovery. You have to check into this and find out. If you price yourself too high, you wont get the job offer. If you price yourself lower, you will possibly get the offer, but how much lower is it worth to you? So you have to ask around in your neighborhood what are others charging. Thats called "the market."

Like I said, it has nothing to do with what is charged by a locksmith; tinker, tailor, soldier, or spy.

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