I am in mergers and acquisitions, and I am a certified Valuations Expert, and I see this all the time.  Specifically in the service industry. Owners are afraid to lose a bid because they need to keep their employees employed so they take jobs just to make payroll.  They can't figure out why they are not making money!  Most owners are scraping by while paying their service people a nice wage.  They have not raised pricing in ten years.  It's not always the case but you would be surprised.  I don't think you are in business until you learn your income statement.  Know your numbers!  How can you make financial decisions when you can't understand your income statement.  I met a lady who owned a furniture store.  They lived and worked in this quaint little east Texas town.  "It's a great place, the kind of place where you would want to raise your children.  We sell our products at a discount to help the local community. A lot of the business owners feel that way."  I asked "when you bought groceries last time; did you get a discount? The gas you bought in your car?  the Tex Mex dinner you purchased last night, all at a discount?"