SVA Forum

dawnjlane · Posted: Mon Nov 21, 2011 10:24 am Post subject: Raise your prices

Good morning all.

I am just about to email my clients to advise them that I intend raising their hourly rate from 1st January, something I have not done since 2006 when I started (5 years... where has the time gone?)

I am happy with the content of the email but don't know what to put in the email subject line - a delicate matter but one they need to read.

My current thought is: Your Office Online Limited - 2012 rate increases.

Does what it says on the tin... Any suggestions/thoughts?

Dawn
_________________
Dawn Lane VAcertified MAMS MInstAM
Your Office Online - www.your-office-online.co.uk
Virtual Business in a Box Ltd - www.virtualbusinessinabox.co.uk
dawn@your-office-online.co.uk
dawn@virtualbusinessinabox.co.uk

JTVA · Posted: Mon Nov 21, 2011 11:54 am Post subject:

I think this is good and straight to the point.

caroline · Posted: Mon Nov 21, 2011 1:28 pm Post subject:

Yup - you don't want to pussyfoot around and have people miss it. Might also be worth backing up with sending something out in the post too?
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dawnjlane · Posted: Mon Nov 21, 2011 1:50 pm Post subject:

Emails gone out - wait and see what they say...

Dawn
_________________
Dawn Lane VAcertified MAMS MInstAM
Your Office Online - www.your-office-online.co.uk
Virtual Business in a Box Ltd - www.virtualbusinessinabox.co.uk
dawn@your-office-online.co.uk
dawn@virtualbusinessinabox.co.uk

vpa-ni · Posted: Mon Nov 21, 2011 9:47 pm Post subject:

Dawn - I would be interested in hearing how your increase is accepted - or not!

I am in exactly the same position - I went live in 2007 and have not increased my rates since then. I was considering taking the same approach as you - advising clients of a proposed increase from January 2012.

Can I ask how you decided on the level of increase - what sort of % did you go for. You are right it is a delicate one and I want to make sure I can justify it and that it appears fair?

Any advice welcomed.
_________________
Heather Greig
VPA-NI
(Virtual Personal Assistant-Northern Ireland)

Phone: 07796 570850
Email: info@vpa-ni.co.uk
Web: www.vpa-ni.co.uk

dawnjlane · Posted: Tue Nov 22, 2011 12:07 pm Post subject:

Hi Heather

I have had a response back from one client which was positive but waiting for the rest to come back to me (two are out of the country at the moment).

I searched Goggle for wording for a raise in prices letter and found this site http://community.intuit.com/posts/price-increase-letter, and reworded the first one to suit me/my clients.

Another search about how much to increase rates and found this sitehttp://www.getharvest.com/blog/2009/03/how-to-raise-billing-rates-in-a-recession/. About the actual rate increase? - I was quite arbitrary really and thought that 5% was a reasonable amount. When I worked out what the rate would be if I had done a 5% increase each year since I had started, I arrived at the new client rate I want to charge (quite by chance though I think). I then opted for a rate in between the old and new rate for current clients.

Dawn
_________________
Dawn Lane VAcertified MAMS MInstAM
Your Office Online - www.your-office-online.co.uk
Virtual Business in a Box Ltd - www.virtualbusinessinabox.co.uk
dawn@your-office-online.co.uk
dawn@virtualbusinessinabox.co.uk

caroline · Posted: Tue Nov 22, 2011 1:16 pm Post subject:

Also bear in mind you don't want them to have too much time to think about it - if they are grumbling about the new rate and have 3 months to umm about whether they are going to switch providers, you may lose more clients than if say they have 6 weeks notice and would need to have someone in place by then.
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dawnjlane · Posted: Tue Nov 22, 2011 1:30 pm Post subject:

I was also quite firm in the wording - no "I am thinking about raising your hourly rate ..." but "It is my intention that your hourly rate will increase ..."

As Caroline says, too much notice and they may look else where. Also by telling them this close to Christmas doesn't give them the real opportunity to look elsewhere at short notice!

However, I have tried to keep the notice friendly; thanking them for their continued valued account and reminding them of the value for money I provide, which allows them to run their business successfully.

Dawn
_________________
Dawn Lane VAcertified MAMS MInstAM
Your Office Online - www.your-office-online.co.uk
Virtual Business in a Box Ltd - www.virtualbusinessinabox.co.uk
dawn@your-office-online.co.uk
dawn@virtualbusinessinabox.co.uk