How can a small service firm that hasn't raised rates in 3 years properly explain a 38% raise in its rate card ?

Comments

TonyLiu: why the sudden rise to 38 percent? Can you raise a modest 10 percent the next three years?
Mixmtl: The idea is that rates should have gone up in those years and that we plan to raise on a yearly basis (less drastic though)

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November 25, 2007

Posted by IceNineJon

3 stars ( 2 ratings )

I'd recommend raising the rates and explaining the raise. Something like: "As loyal client, you know we've avoided raising our rates for the past three years. However, due to ____, we now must increase our rates to (provide new rate card). This change is necessary to provide you with the same great service...." (something like that).

Comments

isaacboy: I would suggest the likely cause is inflation which your customers should understand.
Mixmtl: I agree, inflation is part of the equation. Now I am wondering if we should also mention the fact that in theory the raise should have been gradual which nasicallymeans that they still saved fees in that time and that we are not covering for lost revenues.
isaacboy: it may not hurt to encourage the practice that your increase comes in hand with more or improved services.

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How can a small service firm that hasn't raised rates in 3 years properly explain a 38% raise in its rate card ?

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