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Raising fees

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by v_marrero

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What's the best way to break a rate increase to an existing client?

7 replies

by cactus pete

When the end of the term of your contract nears, propose the new contract, and point out the rate change.

If there is no contract, propose one.

by oz_media

too many people are afraid to ask for the sale, thus no business follows.
As dpetrak said, update your contract (that's if you have a formal arrangement)if not, it's a good idea to write one.
Just like asking for a raise, GO AND ASK FOR IT!
If I think I'm underpaid, i just send out a rate increase notice to my clients. Most just file it and pay the higher rate, one or two usually question it and I give them reasons for the neccesary increase. Others may debate that they can't afford it, this is when your time proven debating skills come in to prove you are the best value for money etc.

If you are going to work for yourself as a consultant, you need the skills to run your own business, not just the skills to support systems.

Ifyour increase is unjustified or too high, your clients may go elsewhere. If you can justifty your rates and prove the value for money to any questionable clients, you'll have no problem.

Try taking a sales course, most techs have no idea how to handle that end of the market nor do they see a need to learn sales, until they are in your position. Most sales managers and CO's HATE contracts and lengthy reports or evaluations, cut and dry give them the goods, you'll earn more respect.

by v_marrero

I will draft the updated contract & present it to the client since my current contract is up for renewal, and see what their reaction is. Actually what I am proposing is to up the fee on the discounted work which is the work done towards the end ofthe month while leaving the prime rate alone. As to reasons. I'm planning on saying that I need for the rate to be somewhat competitive at the end of the month so that I will remain available to the them at that time. What I have now is a rate that goes down 3 times during the month & I want to change that to two times during the month since the top rate is already low. Let me know what you think about that. Thanks

by oz_media

I charge $120.00 hr until 6pm then it's time and a half for four hours and double over that.

As for month end savings, I'd rather hop in the canoe and hang on the lake if cutomers don't need me. (I live about 1/2 block from a nice secluded Vancouver Island lake, pretty lucky I know).

What you're doing is a great way to gain credibity and trust from your clients, hats off for your ingenuity.

Your plan sounds good to me and any employer that can't see the value needs his eyes checked.Good luck,
OM

by v_marrero

I don't have a lot of interaction with people doing what I do. So it's good to find out what other people are doing. I work solo out of my house & car. How about you? Do you subcontract?

by v_marrero

That's probably the reason I appear to be a nice guy. I go in to their places at least 2 times a week. What is your pratice like? Thanks for the insight

by oz_media

By trade I'm a mechanic. by experience I'm a sales manager and marketing administrator.
By practice, I manage several successful UK metal bands as well as having two US offices for scouting talent into the UK that wants to escape pay-to-play US music industry.

I work from home and remote network for two telephone companies in BC as well as doing on call Quality Assurance testing for the CRTC, monitoring companies telemarketing the US to ensure they abide by Canadian regulations.

A host of stuff so I don't get bored, when I get bored, I do something else.

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