How to notify clients your raising hourly rates

this is big contrary!:confused: this way of things happenings can hardly exist!:frowning:

I’d like to suggest a bit more based on what Jexley said.

You need to spin it. Spin it right and the client’s perception of the quality of your services will increase and they’ll be thrilled to pay extra.

Most people say this:

“Because of rising costs we regret that we need to raise our prices to $x per hour. Changes come into effect on June 30.”

Boring. Nothing of interest to the client.

Try something like this:

Your goal is to inform the client of the rate rise. But you also have an opportunity to educate your client and demonstrate to them the large benefits of having you as their web guy.

=================

"Thanks so much for your wonderful support and assistance as we’ve grown the business over the past few years. To have such a supportive client like you [name] has been a terrific asset and our wins in this award/that award have been as a result of that support.

As you might know, we’re now widely acknowledged as one of [city] leading web development companies. It’s a reputation we’re very proud of and one we aim to keep.

[LIST]
[]We make regular upgrades to our hardware and software systems,
[
]Our team undertakes ongoing training, and
[*]We have put in places infrastructure to cope with increasing requirements[/LIST]To ensure our ongoing ability to provide high level of services in a timely manner we have adjusted our hourly rate to enable this. You’ll be pleased to know we’ve managed to keep our hourly rate below the rate of inflation over the past 2 years/or some other index or thing you think of.

The new fees are: $x.

One of the difficulties we’ve had over the years is ensuring our same level of excellent service for urgent projects.

We always help where we can, of course, and will continue to do so. To guarantee the same level of service we have initiated a new policy that enables us to perform these urgent projects smoothly and easily.

Because urgent projects required additional project hours (i.e. overtime) the best way to facilitate their completion is to charge a slight premium to compensate for the cost increases we have.

Urgent projects will be discussed on a case by case basis (of course we need to ensure existing projects do not suffer), however the hourly fee with generally be charged at $y.

Thanks again for your terrific support over the years - we look forward to continuing to provide the most up-to-date and top quality web services you’ve come to expect!"

================================

But my biggest suggestion is this:

[LIST=1]
[]Ring your top 10 clients.
[
]Ask them for their help because they are “clients I respect and who understand business”.
[]Ask them the best way to communicate a price rise.
[
]Then implement a bit of what they say.
[*]Then send them a small thank you gift/thank you letter to say “Thanks for your help with the price rise issue - it was great advice, I implemented it and it worked.”[/LIST]That way your biggest 10 clients will be thrilled you asked and will know the price rise is coming and will feel part of your business.

Hope that helps. Good luck.

I just wait until they contact me about getting some work done, I tell them the new rate when I have negotiating power. No one is ever going to be happy to hear about a rate increase, so I just simply state thats the new market price for my time.

If they ask or complain, I have a few comebacks about rising costs, buying equipment, the weather…

I dont really care to explain it much either, I have worked lined up solid at the new rate.

People get what they pay for. If they want a better service then they must pay for it. That’s just the way it is. People accept this but do not say.

You must also cover yourself and include in your terms that prices/charges may increase due to …

If you word things nice enough and make sure that your customers know why you have increased your prices then you will not have much of a problem.