Again, you missed the point. The guy bidding the property has an hourly rate of $60 so for him and him alone those are his prices for 1 hour of service and a 1/2 hour of service. This guy can only bid the property at "$60 x 1 hour with a 21" mower = $60 (this is the only equation that matters)" The other formula can't be used because you can't use your 60" mower on that property. Now, if we have a different property where the 60" could be used, it is a $30 job if it take a 1/2 hour to service. This property never was a $60 job...$60 x .5 hours with a 60" mower = $30 If you bid $60 on this property you wouldn't get the job because your price is twice as much as the market will bear for this type of property. There is no low balling, there is no profit being left on the table, the business owner is not a poor business owner and he is not a fool. The only fool is they guy who doesn't understand what the market will bear and the market will not bear the prices of the guy who is trying to charge $60 for a $30 property. I mow that property with a 60" and it takes me a 1/2 hour and I charge $30. You mow that property with a 21" and it takes you 1 hour and you charge $30. It is a $30 lawn and I am more efficient than you servicing this property. With the property that can only be serviced with a 21" mower, we are both equally efficient…Now we both have a decision to make… My normal hourly rate is $60 Your normal hourly rate is $30 We service different markets and occasionally our markets cross over into one another as is the case where the client with the 30" gate calls both of us to bid the property. In this particular case, I am operating outside of my market (larger properties more suited for 60" mowers). This is your market (smaller properties that can be serviced with 21" mowers). If I bid that property I can try to service this property at my hourly rate of $60 but I won't get the job because your market will only bear $30 per hour. My decision is to either pass on the job, price it at my regular hourly rate, or price it at the hourly rate for that market, or price it somewhere in between the two rates. As a smart business owner whose business requires an hourly rate of $60, I bid $60 and don't care if I get the job or not because I don't want to work in your market but I will if the client is willing to pay my higher hourly rate. The property doesn't all of a sudden become a $60 property because I happened to show up to bid. Your decision is to either bid normally at $30 an hour or try to bid more per hour and risk not getting the job. You bid $30 and get the job because that is what the market will bear. If we both bid $60, there is a good chance that neither one of us will get the job because the third guy bidding knows his market well and knows this is a $30 lawn but because the client told him that the two other companies wanted $60 this third guy decides to bid $45 and makes $15 more than he would have had you not chosen to price yourself out of the market and give the client the false impression that she has a $60 lawn and is lucky to find a nice guy to cut it for only $45. You didn't get this job but you are helping to raise prices in your market by pricing yourself out of that market.