As AdWorlds sales manager, assume that you estimate costs pertaining to a proposed job as $17,076. Your normal pricing policy is to apply a markup of 18% from total costs. However, you learn that three other agencies are likely to bid for the same job, and that their quotes will range from $16,500 to $22,000. What price should you quote? What factors other than cost must you consider?

Should Cost always be the driver of what a Price should be or should Price be what the Market will bear and you work on your cost to make it work?