The business has seasonality to it so clients understand that the
discounted prices are temporary. We agree that margins could erode if
precedents are set but since they have recently tapped into a new
market (after becoming qualified in a special field) they can choose
higher "profit velocity" jobs to quote. So they have begun to segment
their market.
They ARE beginning a promotional campaign and results are starting to
happen. The biggest change has been away from "waiting for the phone
to ring" to promoting and quoting aggressively to increase
throughput.
Bryan