Well, I kinda got myself in a bind with my pricing of a mulching job for a longtime customer that I do minimal work for cutting and snowplowing.
In the previous years, I did his mulching for a cheap price. The reason was it was real easy and I ussually had left over mulch I would use for scince was a small job about 3 yds. Now with the increases in mulch and gas this year and the increase in my labor cost. The price for me to make any money off this mulching job is double the price what I did last year. How would you approach this with the customer without losing him for the other services you provide to him.
Its a bit difficut to raise your labor costs form $20 to $45 an hour in one year. This problem arose, when a forgot to raise his price the previous years as everyone elses went up. I was not paying attention to the small customer when I was more busy with customers who were paying big bucks.
I guess I will inform him in person of this stituation. I will tell him that my busnines has grown substancely in the past year and that I cannot provide mulching services for that price anymore. It will be XXXX of dollars if you would like our company to handle it this year. Any Advise?