>> But there is nothing more galling to get a price for something only to find that someone else got it cheaper
The fact that someone paid less than me, or indeed that someone paid more, has no impact on my satisfaction.
I paid what it was worth to me at that moment.
Same as my salary, I am not more or less happy with it because someone else earns more or less than me.
>>I guess the mistake was not reacting to the change in their business soon enough.
Exactly. Periodic views to assess exactly that should be in place. Out of idle curiosity if the risk or workload had become heavier, would you have picked up on that and increased the price?
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