OK lets start this off on a sensible note and see how far we get. If you charged £10 you would get every job you quoted for.
At £20 say 98% would accept your quote. So if you go up in price by increments of £10 at a time you would still get takers but progressively less as the price goes up.
Finally, for arguements sake we say that at £500 you get 1% take up but you waste a huge amount of time quoting for jobs you don't get. So your actual profit is zilch.
Allowing that time is money, advertising is expensive. Just where exactly does the profitability hit maximum?
Vince your reasoning is nearly correct however consider that as the price point moves upward then value needs to be added to the service to justify the higher price in order to maximise the uptake for your service. Value can be lots of different things, and some add more value than others.
ie we wash your frames as well as the windows, we will give you a rain guarantee, if your not 100% satisfied we will come back straight away to put things right. All these "standards" alter the customers perception of what represents value for their money.
Its getting the balance right thats the hard bit. And for those that already know this im sorry to bore you with repetition.
Mark