Prices are increasing; do you know your costs?

Prices Are Increasing; Do You Know Your Costs?
Prices are increasing and there is not a single business or individual that is not, or has not been effected. I don't like it, I'm sure your customers don't like it, but it's a reality that we cannot change. So take a deep breath, forget what you used to pay and start working on your current costs and the inevitable price increases that we must pass along to our customers. “But my customers won't pay it!” Your right, they won't unless you ask! No one likes price increases, but customers like it less when the business they depend on for service is not there anymore. On the positive side, prices and costs are increasing for everyone, no exceptions. So everyone is having to increase the prices they charge for their services. The playing field is level.	Here's the facts: Almost every product related to the oil and/or chemical industry has seen substantial price increases over the last year. That means many products that your business uses have increased. Gasoline prices have climbed to record highs. Your cost to make a delivery or to write an estimate have dramatically increased over the last year. In addition the cost for any product that you pick-up, have delivered or shipped to your business has also dramatically increased. These cost increases have effected every business in the nation, no matter how large or small. Businesses must pass along price increases , or cut costs, to remain healthy.
Keep these points in mind: Customers may scream to the contrary, but if your competitors are not raising prices they won't be a threat to you in the future. They won’t be in business! Pricing your work at a profit is the most important step in remaining a successful business. The most successful shops are the ones who know what their costs are, and they know that to remain successful in business they must take in more money than they spend - period! Often times, knowing true costs are the biggest problem small businesses face. Without this information, or worse with inaccurate information, they often under price work.
As we talk to customers, price increases inevitably come up and the complaining starts! "These high prices are going to put me out of business!". We understand that nobody likes price increases, us included, but when we ask how long it's been since they increased their prices it usually gets quiet and this silence is often followed with a confession that they have not raised prices in years. Don't let this be you!