Increase rates after long relationship


#1

My client assigns developers for offshore projects. They are planning to increase their rates. They will have to request/tell all current clients about this price increase. What are some tips to keep in mind while delivering this message? Thank you.


#2

It might not be possible to keep all your clients after the increase. The best thing you can do is to make them feel like their business would always be welcome and that you will continue to be a reliable service provider despite the rate increase.

One thing you can do is to inform clients of the planned increase early on. If possible, in form them of why this increase is necessary for your business. And as a courtesy, give them the option to renegotiate their contract. It’s possible that the rate increase could impact their finances and strain your relationship with them. By giving them this option, you’re giving them time to

  • reallocate money so they can continue working with you
  • find other providers without burning bridges, opening the door to a continued relationship.

#3

JuliaStaRomana, I couldn’t have said it better myself! This is exactly the correct way to respond to this question! Very well done!

The key is, to keep it a soft approach, with early notification! Nobody likes going into a gas station they’ve used for years, finding that the price per gallon went up to 5 bucks, when yesterday it was 2.85! Let them know early, so they can plan, and not get po’d at you for your higher rates!
#YouReadMyMind!

Cite credible reasons for the price increase:

  1. Labor shortages,
  2. Increased labor cost,
  3. Increased benefits costs…
  4. Our health insurance went up!
  5. The specialized training costs for certain projects is killing us…
  6. Our company cat died and we had to cover the burial…
    You’ll get it!

#4

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