Originally Posted by SupportMyOffice

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.

I found that this article by Men With Pens was very helpful - How to Increase Your Rates for the New Year

Great article, Deb. I especially liked this part:

Quote:

Don’t go into in-depth excuses. You have no obligation to justify why you want to increase your rates. You’re in business, you need better rates, and that’s all. If you’ve expressed how the rate increase benefits clients, then you’ve conveyed the right message. Stay away from wording that mentions cost of living or rising expenses that have crunched you. This only reminds clients of their own financial woes, making them even less likely to want to give you more money.

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Lezly Harrison
Laserdog Productions - Code that Doesn't Bite

I have included a clause in my agreement stating "We reserve the right to change rates with 30 day notice to client."

But I don't know if that's being reasonable and I haven't even thought about what the rate increase might be or if i should be thinking of future increases when I don't even have a client!

Since most of our monthly bookkeeping services are priced based on a "per transaction" basis we do include a clause that allows us to review and revise the pricing structure every six months.

We also make sure our clients understand that this clause protects them as well as us since if their transaction volume falls so will their monthly billing.

So far it's worked out well.

Leslie

This is a great thread. I never really thought about putting in my contracts, but now that this is out there I think this is something I should do.

I like the non-specific statement Janine made that it can be evaluated at anytime during the year, but do you think that they might worry you will start off at one rate and then try to gouge them later. I think we should also let them know that the increases won't go over so much within a year to give them some comfort that one day they are paying $x amount of dollars and then the next you are increasing to 3x's that or whatever. Not that I am saying anyone here would do that I am just wondering if this might be a client concern.

I always worry when I am looking at a contract with something nonspecific in it and I've started asking people to clarify those statements in the contract (in writing) before I sign them. I mean you just never know. Does that make sense?

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I state in my covering letter that rates will be reviewed each January and June and any increase will be advised a minimum 60 days in writing.

Gives them plenty of time to get used to the idea plus it gives me the opportunity to review prices twice a year and raise them IF I feel it's necessary. Although once a year has been more than adequate for the last eight years!

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