Hi guys,

Just need a little advice on the best way to renew a contract but to change the rates at the same time.
I have a client that paid for 3 months work at a certain rate an hour up front.
The funds are about to run out so I will be wanting to renew the contract.
The only thing now is I want to change my rate to a higher amount per hour as the work load is far ore then expected and I think i am worth more then the amount original agreed.
Is it ethical for me to introduce a new contract with a revised rate on it now that the inital working period is coming to an end. I dont want to offend the client and i would like to keep working with them so I am unsure of the best way to do this.
All advice welcome
cheers
Karen

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First Class Office Assistance
First Class Help For Your Business

I would recommend offering a notice of rate change effective in 30 days. Perhaps note at that time, the contract will be renewed. This will give the client some time to prepare for the rate increase.

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Delilah Smith
Caliber Virtual Services

I agree with Delilah. I don't think it is unfair to raise your rates, now that you have worked with this client for 3 months. You now know what the total picture is and you are in a position to accurately access a rate both fair to you and your client. The important thing is just to give enough time so the client can make his/her own decision. I think the only time you can't raise your rates is in the middle of an on-going contract. My 2cents.

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JoCarole
http://www.shoreofficeservices.com

I also agree with Delilah. A rate of change notice is the best way to give notice and at the same time causes the client to appreciate the work you do and consider the rate they are currently paying you.

I agree with everyone.

Before doing anything, notify your client that the contract is about to expire. 30 days is an ideal time to notify but 2 weeks should also work fine.

Second, ask him/her if s/he would like to renew the same.

If Yes, then proceed to proposing your new terms.

If No, then you already know what to do.

Hope this helps.