I would just tell him, "Look, don't lie to me. If you want to raise your prices like that, just be honest and say so". Then, inform him your business is now going elsewhere because, doing what he is entitled to do as a business owner, he has now priced himself out of the market.

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“Montana seems to me to be what a small boy would think Texas is like from hearing Texans.”
John Steinbeck

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