Hello,

I've been with my first client, a non-profit, since July of 2007. They are a local client although the majority of the work is done online. When I first started, I had a full-time job and didn't worry that much about the hourly rate. However, now that I am a full-time VA, they are at the lower end of my fee spectrum. I'd like to ask for an increase in pay and feel that it is good to put this into effect at the start of 2010.

Do you have any suggestions on how to do this? I plan on letting them know that they will still have a generous discount compared to my other clients as my rates have doubled since I started with them.

Has anybody else been in this position? If so, how did you handle it?

Thanks in advance.

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Kimberly DeJesus Support Services
www.kdsshawaii.com

Hi Kimberly If they are a client [and not an employer] then you don't need to ask for a raise, but rather, iinform them of a change in your fee structure.

I'd send them a letter informing them of the change, although I do think three weeks notice is maybe not enough - I always give two months. In any case, draft a letter, thank them for the working relationship, offer a few examples of how you've improved your skill set and service offerings [to the benefit of your clientele] and then let them know how much the increase is, when it will take effect, and any other relative items that might come into play. Close the letter with a note about how much you're looking forward to working with them in the new year and voila!

No excuses, no apologies. If you know that you're worth more and you feel they've outgrown their current hourly rate then be kind but straightforward.

I'll look forward to hearing how this goes for you, please keep us posted.

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Hi, Kimberly!

I completely agree with Tess. If you are not on their payroll as an employee and this is YOUR business, by all means....you are entitled to raise your rates when you feel it necessary to do so. Like Tess suggested, send a letter informing them of your rate increase and give them at least a 30-day notice that you are doing so.

I wouldn't mention anything about them still remaining at a discounted rate compared to your other clients. What you charge your clients should remain strictly between you and them individually and should be kept confidential. You shouldn't have to feel as though you need to explain yourself. Your value is your value. I'm sure they see that - especially since you have been working with them for a few years. They are obviously happy with you.

If they value you and your work, they will know you are worth every cent of it and not bat an eye!

Good luck!

Thank you both. I'm going to do as you suggested and will give them 2 months notice.

I wasn't a business owner when I started with them so had a completely different mindset when the terms were set-up. I am the only person that gets paid for my time. The Board Members are all volunteer and do really great things for the local community.

I'll keep you posted on how it turns out.

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Kimberly DeJesus Support Services
www.kdsshawaii.com

Tess has given great advice as usual don’t be apologetic about a price increase when your running a business you must charge a rate that makes the business viable.

Hi

I normally try and raise my rates in January if I'm planning on doing it. It just seems to work well for me. I think people might expect it more then than say May.

One thing that I'll often do for marketing purposes too is to have a "lock in 2009 prices now." And then if they do, they get those prices for 3 months. This works better with new clients too, but often I'll have a client book more on a retainer because of it. It's nice to go into the new year too knowing that you are secure with clients.

Thanks!

Diana Ennen
Virtual Word Publishing

I fully agree with what Tess said as well. I work for a non-profit and we don't usually bat an eye when someone raises their rates on us. It's a necessary cost of doing business and we've seen a lot of rate increases lately due to the cost of doing business (i.e. we have a lot of deliveries and people are raising prices to compensate for the rising cost of gas).

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Stephanie
New VA in the research phase :daisy:

The topic of this thread made me raise my eyebrows. Tess is right on. You raise your rates, no asking involved. If it's been a while since you've raised your rates you might want to show that you've held your rates steady for ___ period of time. Or offer an incentive like discount with a referral along with your letter.

Most clients will value the business relationship that you have built with them and an increase is just part of doing business.

Let us know how everything turns out.

Cheers!!

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Bernice
Energy Virtual Assistant