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by sjburt 862 days ago
I had an employer that would do 10% margin on cost plus. Fixed price they would shoot for 300% or 400%, and if they were getting close to losing money they would start begging for more before delivery. They only time they really lost money is when they were trying to get into a new line of business and wanted to build heritage.

If they ever needed to compete on price, they just wouldn’t. Usually their competitors wouldn’t either, there were only a few.