Higher gas (energy) costs = price increase?

[amartlock]

We've had the mat for over three months now. Gas/electric have gone up drastically since last year (under the old owner who did not raise prices). I expect that energy will increase again in the next 3-6 months.

Since we bought the mat, we have made some aesthetic improvements and have a big remodel project that will take a month involving replacing the wallboard and counter top that is in between the two rows of washers. It's currently a disaster to the eye. Once we upgrade this area we plan to raise the prices $.25. My worry is that in the next 6 months energy will increase again and we will be looking at another price increase. Will this be too much for our customers? Obviously, it will also depend on the competition, we've got a mat less than a mile away. Any suggestions on how to approach the owner with our concerns without price fixing?

[pete f]

You can approach the other owner, just give a phone call. Fixing price is illegal, but so is homeless hanging around your mat, and they don;t go to jail. Unless your mats control a large portion of the market it is not really fixing price, well maybe it is.

Mat owners are going to face the same sort of thing the airlines, trucking companies, and other fuel users face. The price of fuels, and in many areas, tax and insurances, cam fee, has gone up substantially higher then regular CPI. This means the business will make less money this year, maybe next or another couple years. After shifting prices for a few years, and if fuels go steady or drop, we may make better returns. Sure, I want 5 mins per quarter dry but I don't see it happen to quick in most of my mats. I don't see how we are going to jack prices double or triple CPI, which is what is needed .
Remember the years of cheap fuels and how much you made!
That may happen again someday, for now the business is less profitable than it used to be.