I'm self-employed. I charge this client $130 per service call, a discounted rate we negotiated in 2019. My rate for everybody else currently $190 per service call. This company has been giving me about $2,500 a year in business, but there's currently a shortage of people in my profession and I've got more business than I can handle anyway.
They cited supply chain issues as the reason their company is currently squeezed for profit, which is 100% believable. But the suggestion that I charge my clients more to subsidize their bottom line was offensive. Their exact words were:
It would be best if you can keep the same rate to us and only adjust the rate you charge to customers directly to make up for the cost rise [inflation].
I'm trying to figure out the best way to drop them. It might feel good in the moment to tell them to shove it, but I really don't have anything against them. I've been thinking of referring them to the cheapest person in my area (who charges on a sliding scale of $75-150). I figure giving that person more business than he can handle will limit his availability and force him to raise his prices, which is also beneficial to me. Right?