I would tell them nothing about your business expenses and the specifics of such. It's really none of their business. Does your local auto repair shop give you a breakdown explanation of why their shop rate is what it is? Does any business? NO, because it's none of the customers business.

This is the rate I charge, don't like it, go elsewhere. You contracted for this rate up front with full knowledge of it, now is not the time to re-negotiate.

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