From an installers point of view I got tired of the cheap rates I was getting paid from shops (because they all jumped on board) vs the cost of living in my area. I moved across the country where it is significantly cheaper to live yet the labor rates are essentially the same. I just gave myself a raise but I had to use the back door. Best part is the installers here get treated with a little respect instead of just being another warm body to kick. Either way, I'm happy.
What are your installers credentials? I agree retailers are in a tough situation with all the competition. Got a call the other day from a homeowner, talked himself out of using me for a demo, at the end he said he wanted a 12$ an hour laborer to remove his tile floors. I said we are a professional service, so it's the homeowners who are trained to get the lowest price. I don't lay Floors, just lay Blame.
If your quality matches your prices, chances are your reputation will keep you plenty busy. Why worry about being underbid on labor? It's a matter of selling people on why you are WORTH the extra.
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