Hi,

I've read through the great threads here regarding rate increases. It seems that most VAs who implemented increases did so with existing clients. So my question is about signing on new clients.

1) Does anyone include a rate increase clause in their initial contract with new clients?

I'm starting a client out at a discounted rate but I'd like to move that rate up eventually. I'm toying with putting an increase clause in the contract. Yes, no and if so, shall I include a percentage or a percentage range?

2) Or, do you not include anything in your contract about rate renewals and just raise rates as time progresses?

Thanks,

Janine

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Janine it is funny to come across this post as I was reviewing my contracts on Friday. I currently do not have either within my contract. I did raise rates in the fall and notified all current clients by letter that I was doing so.

I have 2 new clients that I had to send the contracts to and was toying with the idea whether or not to put a clause in there. I had no problems when I raised my rates with the current clients so I am feeling if and when I need to raise them for new clients I will just follow suit with what worked for me in the past.

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Dawn Riley
A Virtual Assistant in Paradise
Our business is about making yours better

Janine,
I have one in my contract. Something to the effect that rates may be increased yearly. I feel everything else is going up and we really need to keep up with inflation for our own business.
Jo-Carole

I'm glad you posed this question. I thought I had included it in my agreement. I just checked and didn't. This is something I do intend to add to it when I do the revision later this week.

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Shannon

I ended up not putting a very specific increase clause in my contract for this discounted client.

I thought that if I did put in a yearly increase, as some have done (5 percent for the first year, 5 more the 2nd and 5 in the third with the third being the last year) for example, I might be limiting myself.

What if I need to raise the rate in 6 months instead of one year; 2 percent instead of 5, for example?

So what I did was to include in the contract that rates can be evaluated at any time during the year. This way it was 'out there' to the client that the rate will be reviewed and if I did need to raise it for any reason, then it would not be a total surprise. (Of course, she doesn't have to take the increase in whatever time I deem is needed and she can back-out with working with me anyway.) So I decided not to put in a clause with a percent but just said that the rates could be evaluated at any time.

This just means that the rates are not ground in stone. I wanted this client to know that in a subtle way.

Thank you for everyone's reply!

Janine

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What a fantastic question! Thank you so much, this is definitely something I need to add to my standard contracts.

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Samantha Mayfield CPS
www.StarLeafLLC.com

Does anyone care to share verbiage or a sample letter that you use to announce a rate increase? I am dealing with this for a rate increase after 2 years with a client and never raising rates for them.

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Jenifer D

I just found this thread when searching "Rate Increase"

http://http://www.virtualassistantfo...-increase-4297

Great letter ideas.

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Jenifer D

I've thought of this as well. I've been taking notes on what I want to include in letters to my clients - it's great because I work for a CPA firm and see engagement letters everywhere for many different services, so that really helps me a lot and give me many ideas. I've always been kind of worried about raising prices. I like the idea of simply saying that rates may be evaluated at any time. Something just short and sweet, but doesn't dwell on it or give a certain time frame or percentage increase.

Does anyone actually have a usual amount or percentage that they increase each year or do you all kind of just play it by ear and take it a day at a time?

I look forward to hearing your reponses and any other suggestions.

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-Kelli
Virtual Assistant/Bookkeeper

Originally Posted by Your Virtual Wizard

So what I did was to include in the contract that rates can be evaluated at any time during the year. This way it was 'out there' to the client that the rate will be reviewed and if I did need to raise it for any reason, then it would not be a total surprise.

I love that! I was wondering how to handle a need for rate increases in the future ... terrific guideline.

zippy