I have been charging x-amount per hour for several years now. I have one long-time regular client (mid-size company) that I have not raised yet. They are currently $3 an hour less than my current rate. (They don't know that I'm charging more for everyone else.) I'm thinking raising their rate the entire difference all at once would be too big of a jump and I'd love some thoughts on the subject!

Thank you!

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

Hello,
You say you have been doing work for that compagny the last 3 years, you must have an idea on an average hours you work for them. Why not start introducing some package price instead of charging by the hour? This will give you more flexibility to raise your rate.

You have to talk more about the benefits they get by having you as there VA.

Hi Swannie, thank you for the suggestion, but I can't offer packages for transcription (which is all I do for 99% of my clients) because my regular clients are medium- to large-size companies (mostly insurance) and cannot work that way. They normally need to be invoiced per transcript (or itemized on a monthly transcript) in order to bill back to a specific claim. I've actually been working with them for about six years. Most of my clients are hourly, a few are per audio minute.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

Hey Pam -

With that one particular client I would raise him/her up a little at a time. I would even tell them, in some very diplomatic way, that they are not currently paying what everyone else is - and make them feel special that you kept them low all those years. In other words, schmooze them. It is not unreasonable to raise our rates every year, or at least 2. He/she has been getting a bargain. So maybe let them know that the new rate will occur beginning March or April (give them time to work it into their budget) and let them know you'll be doing it in 6 month increments over the next 2 years, but then make the increments match what you'll be raising your other clients to next year.

So...if you were at $10.00 an hour now (totally for example and not at all realistic to those who would think this is)...and you are charging $13.00/hr. for everyone else - and next year you want to increase them to $14.00/hr. then you would increase him/her $1.00/hour every 6 months for 2 years, so by that time everyone is at $14.00/hr.

HTH

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Pam Blackman - The Process Coach
Get more done in less time by streamlining!

Hi Pam,

I am of the school of thought that I don't really have to give an explanation of a rate increase to anyone. This is business.

It sounds as if you don't have any rate increase clause in your contract with this client. [In my contract, I state that at 6 months I review the account and if an increase is warranted I give 30 days notice.]

If you do not have an a rate increase clause, consider preparing an addendum to your contract indicating that over the next 30 days you will be evaluating the account and may notify them of a rate increase. This gives them a heads up.

I would just increase it one set percentage and simply state that this is their new rate. They already know you have not raised their rate in 3 years so there is no explanation needed.

If you feel that the increase would be 'too large' for them to handle, then break it up over a period of time. 2% for 6 months and 2% for the next two months until they are paying a competitive, even rate along with your other clients. (These percentages are fictitious and for example only.)

You should be paid well for the services you provide. Since they have been with you for 3 years, they know the high level of value you provide.

Janine

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Oh yes I understand that kind of service isn't calculated the same. So true sorry I miss that was your service.

But I agree with Janine on having an increase price section in the contract and reviewing every 6 months to a year. That way they can't say they were not aware of it. You can refer them to that section on the contract. Good one Janine