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Price change letter to customer

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Price change letter to customer
March 14, 2019 Anniversary Wishes 5 comments

I want you to go through a process, one in which you start to change your mindset “But wait a minute, Brad – if I increase my prices, I lose some of my clients. .. Maybe they take responsibility for gathering the data, or for writing the report?.

Company name

Street Name and Number

Postcode and City

Country (State)

MM/DD/YYYY

 

 

Company name

Name ad Surname of the responsible person

Street Name and Number

Postcode and City

Country (State)

 

 

 

REF:  Forthcoming Price Change

 

Dear Sir/Madam,

 

We highly value to have [Name of the Company] as our customer, and we invest consistent efforts to meet your expectations. Due to changes on the market, and increased prices of the inputs for our products, we had to adjust our prices.

 

Therefore, with this letter we wanted to send you a formal notice to you that price of the [Item Name] is about to change, starting from the [DD/MM/YYYY] . New price for our regular customers will be [Amount $] instead [Amount $] per lot of 50 pcs. As the new price-list enters into effect starting from [DD/MM/YYYY] all inquiries made before that date will be invoiced on the regular (old) price.

 

Please note, that [Name of the Company] as one of our most important clients will continue to benefit from special prices arrangements. Therefore instead of instead [Amount $] per lot of 50 pcs, we will invoice an amount of [Amount $] per lot of 50 pcs.

 

We hope that forthcoming price change will not affect your trust in the quality of our services. As a consequence of the changes in the prices of our main inputs we had to adjust our price in order to maintain quality of our goods.

 

We appreciate your continued interest in the many ways that we can improve our offerings, as well as the support associated with this critical component of your business. If you would like to further discuss any of the options and/or changes noted in this letter, please contact us.

 

Regards,

[Signature]

[Name ad Surname of the sender, followed with an official stamp]

Subject: Change of ownership announcement letter Dear customers, This letter is . This Price Increase Announcement Letter will inform your customers that the.

Formal business letter about price change

price change letter to customer

Price Increase Announcement Letter

Pursuant to the No-Action Letter, the NAL Recipient provides the Bureau with information comparing outcomes from its underwriting and pricing model (tested model) against outcomes from a hypothetical model that uses traditional application and credit file variables and does not employ machine learning (traditional model). January 5, 2017-No comments. Best-in-class businesses embrace decisions like these with confidence and communicate that feeling by issuing an announcement. Mind you, after years and years of conducting research at Intellaprice, I know that the price increase a company announces is not always the price increase it implements. For example, perhaps your business is being forced into a price increase because the cost of your raw materials has gone up. To put that into perspective, Netflix spent approximately $6 billion on original content in 2016 and is expected to spend close to $7 billion in 2017. After all, you don't write these announcements every day. 7%), which marked the first month of price increases after the last softwood lumber agreement expired. Median home values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas. 5% from mid-September, affecting 3. Please confirm your acceptance of these terms by signing one copy of this letter below and returning it to me in the stamped addressed envelope provided. The proposed prices would raise Mailing Services product prices approximately 1. Blake, This is in regards to the contract by us, Bates and Mates Cleaners Limited with your organization effective from 5 th of May 2012. Basically however, just like any other piece of written work a letter has the introduction, the body and the conclusion. But, a few subtle strategies in terms of how you make your price increase announcement can go a long way in making sure your members aren’t rubbed the wrong way. Price Increase Notification Letter. We determined a 2. The outlook is so bleak, it's increased worries. are likely to keep driving up domestic metal prices that have already been on a tear. The average price increase for WebSphere and MQ tools is about 3%; DB2 tools is about 5%; and Optim is about 10%. There was an increase to the Additional Handling Surcharge for packages that have an actual weight greater than 70 lbs. Instead, be positive and show the customer why the increase is fair and makes sense. It feels like an unreasonable jump in price for little added benefit. Is that it?. This steady upswing is coupled with increases in aluminum, steel, zinc and freight. Simply fill-in the blanks and print in minutes! Instant Access to 1,800+ business and legal forms. By Image Studios 360 adding services, building value, price vs value, raising prices, salon business tips Comments Off on 10 Tips for Raising Prices While the need to raise prices is usually good news for your growing salon, it's not always music to your client's ears, especially for those clients who have been with you for years (maybe. Price Increase May 7th, 2018. 2 million people work for Walmart. 2 Responses to “Increasing your prices without losing customers” Randy Wyckoff Says: May 7, 2010 at 5:37 pm | Reply. It helps avoid any conflict between the customers and the clients at the time of sale or deal since the prices are already properly declared. We have enclosed our new price list for your review which goes into effect on [date]. If that happens the big question will be how and why this gap can happen. Be sure to include any “enclosures” mentioned in the letter. doc) and Excel (. Best-in-class businesses embrace decisions like these with confidence and communicate that feeling by issuing an announcement. As you probably know, rental prices have skyrocketed throughout Tennessee this year. Blake, This is in regards to the contract by us, Bates and Mates Cleaners Limited with your organization effective from 5 th of May 2012. The new service fee will be $50. Is that it?. Fiverr is the world's largest freelance services marketplace for businesses to focus on growth & create a successful business at affordable costs. Effective January 1, 2018. February 6th, 2018. To increase your rates without causing clients to reassess whether to do business with you, be straightforward and focus on adding value rather than justifying the increase. Announce the death of a family member, or write the obituary; Announce the death of an employee or an employee's relative; Announce the graduation of a son or daughter; Announce your own retirement; Sales Announcement Letters. By Image Studios 360 adding services, building value, price vs value, raising prices, salon business tips Comments Off on 10 Tips for Raising Prices While the need to raise prices is usually good news for your growing salon, it's not always music to your client's ears, especially for those clients who have been with you for years (maybe. Here are some tips to help you make these decisions: Know your worth. My favorite quote is “Charmin is the most expensive toilet paper and there isn’t a shred of evidence that it does a better job”. 1 day ago · CargoJet’s share price surged to a record high on Friday on the announcement of a new strategic agreement with Amazon under which the e-commerce giant would own up to 14. That policy stated the lender could use either 1% of the outstanding balance, or a calculated payment that would fully amortize the loan based on the documented loan repayment terms. This price increase will allow us to continue to invest in providing the high level of quality and service you have. com, as well as by request from our sales reps in each of your territories when they are calling on you, and via email requests sent to them, or sent directly to [email protected] This letter is being used by those companies like ChenOne, Stylo, Borjan, Hushpuppies, Levis etc who offer huge discounts on specific brands to their special, regular and loyal customers. We are very pleased and glad to be able to pass this extra savings directly on to you. In Announcement SEL-2017-04, we simplified our policy and changed how to handle student loan payments on the credit report with a missing or $0 payment amount. 61 (per hundredweight). (1) Price List From Letter Informing Customers of Price Increase to HOME PAGE. Time Warner couldn’t give an example of increases for a basic package of TV, cable and phone. Since S-W increased it's price, Porter will not be far behind. My favorite quote is “Charmin is the most expensive toilet paper and there isn’t a shred of evidence that it does a better job”. Price Reduction Announcement Letter This package contains (1) Instructions & Checklist for a Price Reduction Announcement Letter; and (2) Price Reduction Announcement Letter; This form is designed to assist you in drafting a letter to announce a price reduction. Sample Letter Informing Client of New Price when previous Quotation has Expired To put this increase in perspective, it is helpful for you to know that we have. Learn, teach, and study with Course Hero. But, at the end of the day, no one likes being told that they have to pay more for anything, and the energy industry is no different. There are several things I’ve done to help make my child care facility one of the best. This price reduction was intended to offset the increase in card prices, while encouraging organizations to buy more workbooks. 38+ Marketing Letter Templates Marketing is a lot more about selling products and services to individual consumers as well as groups or companies depending on the nature of the business and its chain of supply and distribution. After all, a sale is not an event, but a process. Announcement of Class and Component Prices for July 2019. Canada’s food-service industry is facing tough choices after the Canadian Dairy Commission announced it is raising the price of butter fat and raw milk by 4. The prices for envelopes and boxes also went up. Price changes listed are subject to change without notification. If Arla do manage to announce a no price change it will leave a whopping 2. Sign your form online, free with any form purchase. It should contain details regarding the individual being mention, like their previous designation, the new designation, qualifications, etc. Fannie Mae and Freddie Mac Baseline Limit Will Increase to $453,100. Effective April 13, 2018, or as contracts allow, Dow Building Solutions, a business unit of The Dow Chemical Company, will increase the selling prices of all STYROFOAM™ Brand Extruded Polystyrene Insulation by seven percent (7%) in North America. but only the amount of the increase, the affected route(s) and the implementation date. I thought this would be an appropriate moment to discuss an increase following the recent closure on the (name/explanation) deal that I spearheaded and successfully managed to secure for us for the next (12) months. Eaton Announces Price Increase Eaton announces a price increase for its electrical business, including Cutler-Hammer products, effective Monday, May 16, 2005. 99 — a $24 increase. View Details All Versions. You are, in effect, telling the “story” of the employee’s history with your organization in order to justify their promotion. DOW BUILDING SOLUTIONS PRICE INCREASE ANNOUNCEMENT Dear Valued Customer: Effective April 13, 2018, or as contracts allow, Dow Building Solutions, a business unit of The Dow Chemical Company, will increase the selling prices of all STYROFOAM™ Brand Extruded Polystyrene Insulation by seven percent (7%) in North America. Although the amount of the increase may vary by item, the estimated averages will be. The price rise could cost Amazon up to $1. Announcement of Price Increase Template – Download Now. Locking a price in at the current low steel prices is a great way to capitalize on the market and maximize the value of your steel building. Appraisal letters are written by the HR department to notify specific employees to praise their work performance during a calendar year. ACTION ITEM: Calculate new rates for current clients, get mailing list prepared, write a letter and mail. com are not to be considered as legal. ) rate for postage purchased at the Post Office will increase by five cents to $0. This was a difficult decision. After all, a sale is not an event, but a process. Scenario: Top level management releases a memo about a price increase-and because you know. The bad news is that I must increase your current child care rate by $5. 5% on all PS products, beginning with orders placed January 2, 2018. This entry was written by admin, posted on July 23, 2008 at 10:32 am, filed under Announcement and tagged announcement letter, announcement letter for price increase, price increase letter. InvestmentNews is the leading provider of news, data, research and events for financial advisers on investing strategy, practice management, retirement planning and technology. After all, you don't write these announcements every day. Due to {reasons for the price increase}, we are going to be raising our prices on {type of product(s)}. 1 million customers. The annual calculation is based on the percentage increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region for the 12-month period prior to September 1, 2017. Existing subscribers, however, were. Our team starts by sending a price increase letter to customers via email and in-app notifications six months in advance. 8 million workers will have received a pay rise of almost five per cent as the. This will give your clients a chance to make the necessary funds available when the price increase comes into effect or allow them to consider their options. Price Increase Notification Letter. It was announced last August and $2 from every entrance ticket sold will go to the Kantha Bopha Children Hospitals Foundation, which offers free medical treatment to children in five hospitals around Cambodia. Price Increase Announcement Letter to Client Price increase announcement letter are written for this purpose. Workday offers enterprise-level software solutions for financial management, human resources, and planning. notification of group health care plan change By: Janet L. It’s also an opportunity to restate the date the rent is due, the policies for late payment and how the rent is paid. Welcome to the RP Emery & Associates Free Business Letters And Legal Forms Page. Appreciation letter is written to appreciate the performance of your employee. According to Laura, a 3% increase each year is easy for most clients to handle, whereas a 10% hike every five years will cause a backlash. This announcement is intended to provide notice that all previous B-Line series product pricing or B-Line series product price sheets currently in effect shall be replaced by the updated pricing as indicated for all orders received on or after October 16, 2017. 5 % rate increase on all items starting January, 2017. Communicating a Rate Increase to My Clients There is no reason to not write an individual letter to each client. 23, the day a new 25 percent tariff on China-made e-bike goes into effect. The amount of the increase will be between 100% for returns under $250, and 50% for large, more difficult returns. House Prices Rise 1. The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100. businessformtemplate. Download The Announcement. Dear Sir, The Management of the above Apartment Complex has decided to enhance the existing Service/Maintenance Charge by (enter amount) from (enter date) for the under mentioned reasons:. Don't spring a price increase on clients without any notice, but set a deadline for the change and offer clients one last opportunity to take advantage of the lower rates. “Today’s letter highlights State Innovation Waivers as opportunities for states. Dear Parents, I have been in the business of providing child care for over xx years now, and I am always striving to operate my child care in a more professional way. Letters (metered 1 oz. This price increase will allow us to continue to invest in providing the high level of quality and service you have. Announce a new product or service; Announce a price decrease; Announce a price increase; Announce a sales contest. These prices do not include the additional 2 per cent discount that is offered to our customers who pay within the 10 day discount period. The best way to inform clients of a rate increase is to tell them well in advance. Ten successful entrepreneurs from YEC explain how they go about breaking the news of price increases to their most loyal customers. This letter is being used by those companies like ChenOne, Stylo, Borjan, Hushpuppies, Levis etc who offer huge discounts on specific brands to their special, regular and loyal customers. Letter - Notice of Price Increase. Jones and my enrollment number is 948n4. Subject: Letter for Discount in Fee Dear Mr. The price increase for the Southeastern and Mid-Atlantic regions will occur on July 25, 2016, while the price increase for the West and Mid-West regions will occur on July 11, 2016. Our forms are guaranteed to be valid in your state. Sometimes they have to be raised due to the cost of raw materials, sometimes because the costs of running your business in general have risen. Discount Offer Letter to Customer July 31, 2015 DocumentsHub 1 Comment Special Discount Offer Letter Format. Announcement of Class and Component Prices for July 2019. If there are. Ingersoll Rand’s Residential HVAC strategic business unit today announced a price. 6% cost-of-living adjustment for Social Security recipients next year. At the Resin Technology Inc. 5% on all PS products, beginning with orders placed January 2, 2018. ACHR News Content on 'HVAC Price Increase' On Demand Refrigerant Safety Classes A2L and A3 have a very low GWP, making them a strong, long-term solution for many HVACR applications. A carefully crafted letter presented on attractive letterhead can be a powerful communication tool. Steel price increase after tariff announcement isn’t gouging, supplier says. Sample letter. Since S-W increased it's price, Porter will not be far behind. Is that it?. But if you have new services or products ready to roll out, it's fairly easy to lessen the. Manson Insulation will increase its prices on all Commercial, Industrial, and Air Handling products for North America effective with all shipments on or after January 12, 2018. Dear Valued Customer; Please be advised that due to rising asphalt, transportation, and other costs, the price of all Continental Materials and Hot Stuff asphalt products will increase between 5% and 8% nationwide effective with shipments June 11, 2018. In the company’s third quarter shareholder letter, company executives confirmed they would spend between $7 and $8 billion on content alone. When you name the letter 'Price Adjustment' and begin. The average price increase for WebSphere and MQ tools is about 3%; DB2 tools is about 5%; and Optim is about 10%. We want to help North Carolina consumers understand how they will be affected and provide information to support them in making the best decision for their personal situation,” said Barbara Morales Burke, BCBSNC vice president of health policy and chief compliance officer. The single-piece additional ounce price will be reduced to 15 cents, so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to. A price increase can have a dramatic effect on your bottom line, especially when you use it as another opportunity to convey the benefits your service holds for your clients. Most won't argue over a price increase if they like your service, personality, and you are reliable. This is the same with having insufficient communication within a corporate organization or a business. Enclosed is a copy of our new Price List. Writing price increase letter without having basic writing skills and appropriate wording could be a challenging job for you. xls) format. Sample Letter #5. from China, effective September 24, with an increase to 25%, effective January 1, 2019. Perhaps you were afraid to losing customers if you initiate a price increase. This can be by letter or in person. The first rule of implementing a price increase is that you must announce it to your customers. Please confirm your acceptance of these terms by signing one copy of this letter below and returning it to me in the stamped addressed envelope provided. You're always on top of your social media game when it comes to the day-to-day and showing off all your incredible looks, so don't forget to use it to inform your clients of your price increase. In recent weeks, steel prices have increased aggressively, stimulated by an expected rise in demand and strict foreign trade enforcement. com are not to be considered as legal. We have avoided raising our prices for as long as possible, but we can no longer prolong it. This letter serves as notification that Skyworks Solutions, Inc has decided to discontinue the manufacturing of specific catalog part number offerings from our GaAs RFIC Switch, GaAs Microwave Component and Silicon Discrete product lines. Here are some tips to help you make these decisions: Know your worth. Prices of goods, products, and service don’t always remain the same. 5% on all PS products, beginning with orders placed January 2, 2018. individual areamedian home price increases will be evaluated. The announcement of an 8% price increase on a major product line shouldn't come unexpectedly out of the blue. Have a price increase coming but still not sure how to say it? The tips above have been included in the following examples of price increase letters that have been sent to real customers. Class IV Price. Based on the interest of the student body in science and particularly in chemistry, this letter is a proposal to form a high school chemistry club. If you need to increase your credit limit we will be glad to review it. Prices will be updated automatically in the Anvil International billing system on the effective date of May 14, 2018. Dear Parents, I have been in the business of providing child care for over xx years now, and I am always striving to operate my child care in a more professional way. , you and your buyers have a duty to try to reduce and delay the impact of any increase to your company. MaterialScience LLC is announcing a price increase of $0. First, I want to apologize for the suddenness of this announcement. Indeed, however, we will not be able to serve you if our business incurs losses. Even the most seasoned sales rep would need a few cups of tea to calm the nerves that come with this situation. Suppose you have a tenant, and he is like a model one, make sure that you give him compliments regularly. There is a problem with this working in practice, however. price increase sample letter By : www. The main goal of this club is to provide a fun opportunity for students to broaden their knowledge of chemistry and to interact with other students who have a shared interest in chemistry. Announcement emails are very helpful in creating awareness and also act as an important source of information. If youre searching for any new fresh plan for your own home then the Letter Template Increase Fees image needs to be on top of resource or you might use it for an alternative concept. The tenant signed an agreement to rent the property at a certain price, and this price will remain valid until the lease expires. Please check with your Customer Service Rep as this date approaches for information on current product lead times. Treasury. Customers are not always thrilled to pay more for products, and companies may fear losing revenue by driving current customers to competitors who offer similar services for less. The hike, which goes into. Writing well, just like speaking well is a valuable communication skill especially when it comes to business matters. An asserting resignation letter which appreciates the role of colleagues and employer in overall career growth of the employee which offers a pre-agreed span of time for transition is beneficial for the mutual interest of the parties involved. Price Increase Announcement Letter to Client Price increase announcement letter are written for this purpose. This is the first increase in membership dues since 2000. Price increase letter with Signatures. Please receive my price reduction request letter for your line of product especially canned meat and baked beans. We call such increases Cost-Of-Living Adjustments, or COLAs. Of course the customer is going to react strongly to the suddenness of the information. Prices can be influenced by several factors, including the price of scrap, the strength of the American dollar, and the general condition of the world economy. The aluminum business has been in quite a rut as aluminum prices have fallen significantly from their 2011 highs. In this working paper we describe the price increase announcement letters sent by the Majors (that is, Aggregate Industries, Cemex, Hanson, Lafarge and Tarmac) to their aggregates customers. There is a problem with this working in practice, however. Download The Announcement. According to a letter Charter sent to local cities and towns, the company says "Like every business, Charter faces rising costs that require occasional price adjustments. Price Increase Announcement - Asphalt Effective: June 11, 2018 Nationwide. This can include ways you've already cut costs or how the increase is the only way to maintain the quality and service the customer expects. Sample Price Negotiation Letter to Vendor/Supplier. We all know that inflation has returned in many commodities. We hope you feel this is still a great value, and we appreciate your patronage. Dear Valued Customers: This is to inform you that there will be a 2. Price Increases - The most widely read source for ink news and in-depth information on the development, manufacture and sale of flexo, gravure, rad-cured, inks, coatings and allied products. It's always with reluctance that we have to announce a price increase to cover our increased cost of equipment, supplies, and staff. xls) format. This letter is issued from a courier company like tcs, ocs, leopard etc for revising rates because of increase in charges. Steel price increase after tariff announcement isn't gouging, supplier says. “States need the flexibility to develop innovative healthcare models that will improve patient access to care, increase affordability and choices offered, lower premiums, and improve market stability,” said Health and Human Services Secretary Tom Price, M. Announce a Price Increase. ) ‘We know that no one likes price increases…. Aloha Sharon, One option is to raise your rates to $90 for 90 minutes for all new clients immediately. Due to the increase in raw material costs, we must raise the cost of our products to you. That's understandable. 2019 Price Increase Letter ClarkDiet Price Increase Announcement April 2019. The following brands and product lines will be affected: Watts. This increased random drug testing rate results from a recent uptick in the proportion of violations identified through random drug testing. To increase your rates without causing clients to reassess whether to do business with you, be straightforward and focus on adding value rather than justifying the increase. As Jeanne advises, do your due diligence and gather as much information about how your pricing has changed overtime. List prices will be increased per the following schedule: Learn more…. VENDOR(S): USG, Armstrong & Rockfon MATERIALS AFFECTED: INCREASE % START DATE Commercial & Retail Suspension Systems 5% 5/31/2016 Accordingly, Kamco Supply Corp of Boston will increase prices equal to that of the manufacturers on shipments after the above dates. Announcement of Price Increase. Rising material and transportationcosts continue to impact our business and our entire industry. Most businesses send less emails than they could for fear of annoying customers. ExxonMobil to increase US PE prices in March: letter Houston (Platts)- ExxonMobil Chemical on Friday became the latest polyethylene producer to announce plans to raise US prices by 3 cents/lb in March, according to a letter to customers obtained by S&P Global Platts. To add emphasis, place that detail alone in a separate paragraph or underline it. Please contact your Zacros America Hedwin Division Customer Service Representative should you have any questions regarding this price increase announcement. The National Disability Insurance Agency (NDIA) is an independent statutory agency. A trip to Fenway Park just got a little more expensive. These emails usually act as a kind of invitation of a certain event. See how they explained the price increase as necessary to continue providing the quality people are used to? Also, the timing of your announcement is important. FHA's nationwide forward mortgage limit "floor" and "ceiling" for a one-unit property in Calendar Year 2019 are $314,827 and $726,525, respectively. The price increase for the Southeastern and Mid-Atlantic regions will occur on July 25, 2016, while the price increase for the West and Mid-West regions will occur on July 11, 2016. Price increase announcement letters in aggregates. December 12, 2016. Simple economics will tell you that a 25% cancellation of subscriptions will still leave the price change a profitable decision. 05% price rise. News of the following price increases have been reported to the HVACR industry at-large: Daikin Applied announced a 2 to 5 percent price increase on all applied and unitary commercial equipment, effective Dec. Send this letter to a client, informing him/her of a price increase on a particular product. 4) for each kilograms of white meat sold to. Price changes listed are subject to change without notification. See how they explained the price increase as necessary to continue providing the quality people are used to? Also, the timing of your announcement is important. We now have avoided raising our prices so long as possible, but we can no longer prolong the inevitable. Price Increase Letter For Services - price increase announcement letter writeletter2, how raising my rates brought me closer to my clients, send this letter to a client informing him of a price, rate increase letter for services, vendor letters amp notifications cb. Walmart’s letter, dated Sept. To that list of literary pranksters, Rymer left out another group, fee increase letter writers, whose capacity for bloodshed with a smile is without peer. For example, perhaps your business is being forced into a price increase because the cost of your raw materials has gone up. Price Increase Notification. This price increase will apply to all Makrolon®, Bayblend®, Makroblend® and APEC® engineering thermoplastic resins. 99 ounces is with First-Class Package Service. Today's filing does not include any price change for single-piece letters being mailed to international destinations or for additional ounces for letters. Ingersoll Rand’s Residential HVAC strategic business unit today announced a price. Price Increase Announcement. These prices do not include the additional 2 per cent discount that is offered to our customers who pay within the 10 day discount period. When you increase prices, do it in writing, give choices and, most importantly, add value to the offer. My favorite quote is “Charmin is the most expensive toilet paper and there isn’t a shred of evidence that it does a better job”. 9 percent, and most Shipping Services products will average a 3. Plant; Pool prices for Quota, Overbase, and Blend. National Minimum Wage increase letter template - free PDF or Word download Enter your email address to start your download. December 12, 2016. InsideTrack UP Takes Center Stage in Community Partnership for the Arts. North American polypropylene buyers have received a rude awakening in 2017, with prices for that material jumping 10 cents per pound since Jan. This is the tougher one. " I get it - it's a necessary part business. However, if you renew before the end of the month, we will reduce the price increase by 50%, making it just a 4% overall increase to get this level of service. The company’s bumping up pricing from $10. Trump announces steel and aluminum tariffs, but with 'flexible' exceptions. Dear Valued Customer; Please be advised that due to increases in crude oil costs, as well as increases in freight, CMI will be increasing prices of all CMI built-up roofing asphalt products. Writing well, just like speaking well is a valuable communication skill especially when it comes to business matters. In this sample salary increase letter, the manager has met with the employee so the letter is confirming what the employee already knows. Download FREE letter templates, forms, certificates, menus, cover letters, rental and lease agreements, and much more. There can be many reasons behind price increase or situations when a it must be executed for development of the business or company but a business must announce the situation in a pleasant way to keep all customers happy. Blanket tariffs on steel and aluminum imported into the U. Send a Letter. Co-developed with Microsoft for the Surface Hub 2, the lightweight mobile stand and easy-to-install wall mount of Steelcase Roam. The key word here is "respond". Welcome to the RP Emery & Associates Free Business Letters And Legal Forms Page. We have avoided raising our prices for as long as possible, but we can no longer prolong the inevitable. I think the price increase notification needs an attitude adjustment. The business forms and letters contained on BusinessFormTemplate. Post-transaction, Time Warner shareholders will own between 14. USPS Announces 2017 Postage Rate Increase October 26, 2016 The U. Letters from Businesses. But, a few subtle strategies in terms of how you make your price increase announcement can go a long way in making sure your members aren’t rubbed the wrong way. Please receive my price reduction request letter for your line of product especially canned meat and baked beans. Enclosed is a copy of our new Price List. This is a list of standard government forms that start with the letters "SF". AT&T will raise DirecTV prices from January 2017. As per the rule, landlords should offer the letter to tenants a month before so that the person get some time to adapt with the increased rent or find some other place to reside. 17/month, billed annually. I am writing a letter to our customers to announce our price increase. Sample Letter – Requesting Credit Limit Increase Writing Tips Firstly it is essential to express your gratitude towards your manufacturer for doing business transactions with you. Announcement of Price Increase Template - Download Now. 00, which includes mowing, edging, string trimming and blowing off concrete. Effective January 1, 2009, prices for Passport Advantage Eligible Products, including software licenses, Software Subscription & Support, Software Subscription & Support reinstatements, and trade-ups, will increase approximately 5% regardless of when payment is received. I send out a flier explaining that there is an increase in product costs so I will have to increase my service prices. New job announcement letter is formal and highlights all the requirements for applying to that position. Steel price increase after tariff announcement isn't gouging, supplier says. This is one of the mediums to disseminate information faster about your current developments in your company. You want to let current customers know ahead of time, so remember to announce your price increase shortly before it goes into effect. With customers, you don't have to divulge all details of the price. This necessitates the need to initiate another increase to be effective close of business Tuesday, February 26th. The price increase for the Southeastern and Mid-Atlantic regions will occur on July 25, 2016, while the price increase for the West and Mid-West regions will occur on July 11, 2016. If you wish to continue service please sign and return the acknowledgement below stating the new service charge. Class IV Price. But here’s what participants didn’t know: They were divided evenly into six groups and placed into different message conditions, each of which took a different approach to framing the price increase. Write this type of letter to complain to a company about a price increase that has taken place on their products and/or services. You may use this sample price increase letter template for personal use. How Does a Company's Stock Increase in Price? By: Slav Fedorov Because it is easier to make the stock price go up than to. 05% price rise. Sample letter of Rate Increase Letter for Services and Rates revision format for business clients, hotels ,customers, companies, hospitals, agencies, schools, property dealers and many more. 00, which includes mowing, edging, string trimming and blowing off concrete. Price Increase Announcement Letter. Our prices are most competitive and we shall be pleased to offer you a discount of 20% as a special case. Resin makers announce price increase. The recent announcement by China of prioritizing low inflation over growth hasn't. 2020 Medicare Advantage and Part D Rate Announcement and Final Call Letter Fact Sheet. Analysts estimate that it takes several contacts to connect with a client and make a sale. The average price increase for WebSphere and MQ tools is about 3%; DB2 tools is about 5%; and Optim is about 10%. How Does a Company's Stock Increase in Price? By: Slav Fedorov Because it is easier to make the stock price go up than to. These emails usually act as a kind of invitation of a certain event. Lennox Industries announced up to a 5. 7% of AT&T shares on a fully-diluted basis based on the number of AT&T shares outstanding today. Products: Wisconsin / Ward Nipples – Welded Nipples Ward Steel Pipe Couplings New Price Sheets:. All shipments made on or after this date are subject to the price increase. We have seen some of these increases already implemented with more forthcoming this month and next, which is requiring us to announce a price increase. After all, you don't write these announcements every day. Price Increase Letters. When we announce the annual cost-of-living adjustment (COLA), there’s usually an increase in the Social Security and Supplemental Security Income (SSI) benefit amount people receive each month.

WATCH THE VIDEO ON THEME: How to Tell Clients You’re Raising Your Rate (and Sample Rate Increase Letter!)
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price change letter to customer

Sample Rate Increase Letter to

Clients in Private Practice

I remember when I first launched into private practice after getting licensed I thought I could set my rates once and not touch them again for many years. In reality, I quickly realized after accounting for inflation and rising costs of expenses that I would have to raise my rates fairly often if I wanted to continue earning the same income, let alone earn more over time.

Today’s post walks you through the process of how to tell your clients you’re raising your rates in private practice and offers the oh-so-desired sample rate increase letter that you can swipe for free from right under my nose! Read through to the end to snag the increase letter.

Raising your rates in private practice

Why you need to raise your rates

Let’s get something out of the way first: you are FULLY allowed to raise your rates in private practice! Many therapists I talk to express concern that once they advertise a certain rate then they have to keep it that way forever.

The truth is, no business operates under this model because it isn’t sustainable. Inflation rises, our overhead costs increase, our cost of living increases. If we never raise our rates, we’re effectively giving ourselves a pay cut with each passing year. Or we may be working ourselves into the ground seeing more and more clients just to keep up the same standard of living.

I encourage you to make a plan to raise your rates on some regular basis. Whether you choose to tag on a certain percentage annually, or if you choose to raise your rates based on how busy you become, it’s important to know that if you’re in this journey to make a living, raising your rate is part of the process.

How much should I raise my rates in private practice?

How much is the right amount to raise your rate? I have a full article walking you through the process of setting your rate in private practice. Check out that post to help you reevaluate your rate and set it so that you can earn the income you desire while seeing your ideal number of clients. Check out that post here: Set Your Hourly Rate in Psychotherapy Private Practice.

Once you decide to raising your rate, the next (potentially) horrific part of the process is going about announcing the change to your clients.

How to tell clients you’re raising your rates

Most therapists are fearful that clients won’t react well to a rate increase, or that they may lose clients over it. Though both of these outcomes are possible, I’ve found most clients are completely understanding that we need to raise our rates from time to time.

Furthermore, there are various ways to go about announcing a rate change to help clients feel more comfortable with the change. Here are some tips to help the process go as smoothly as possible:

  • Have a clause in your informed consent giving clients a heads up that you may raise your rate in the course of counseling. You can elaborate here how you’ll go about making that announcement so they’re prepared for it.
  • Consider giving your clients advance notice. If a client potentially can’t afford your new rate, this may be helpful to allow them space to transition out slowly and get them situated with a new therapist if needed. This also helps clients plan their budget and make changes accordingly.
  • Frame the change in a way that helps clients empathize without you coming across as needy. Be respectful of the service you offer while also being upfront about increased inflation and overhead costs. You can frame it in such a way to make clear that raising your rate will allow you to offer the same quality of care moving forward.
  • Consider offering the change in a way that helps clients feel cared for. Personally, I frame my rate change as “effective immediately” for new clients, but let existing clients know it won’t apply to them for a 90-day window because I appreciate their business.
  • Offer the announcement in writing. Whether on paper or via email after you’ve given a verbal announcement, having a written document helps clients remember and formalizes the process. Not sure what to write in the letter? I have a free PDF sample of my own rate increase letter. Feel free to swipe the file for yourself and personalize it to make it your own. Here’s a link to my free sample rate increase letter:

Free Sample Rate Increase Letter to Clients in Private Practice

If you are mindful of how you raise your rates, making the announcement to your clients doesn’t need to be counter-therapeutic. A 90-day notice is customary, though not required. I also remind my clients of the upcoming rate increase a month in advance as well as a week in advance so that they aren’t caught off guard when it comes time to charge the higher rate.

That’s it! Most of the work on this one is learning to overcome our own insecurities around whether we have permission to raise our rate. If you needed that nudge – let this post be it! It’s a natural part of running a business.

I hope this post helps you prepare to tell your clients you’re raising your rate. Until next time, from one therapist to another: I wish you well!

-Marie

Photo by NeONBRAND on Unsplash

What if all your customers get angry and leave? Hello anxiety! You might be hesitant to bring it up at all — just change the pricing page and.

Price increase letter sample: Raise your freelance rates with this letter

price change letter to customer

No matter how great the work is, and how much fun you are having – nothing can thwart a business owner’s enthusiasm like being broke. It’s no fun lying to your vendors about when you can pay them. It’s no fun worrying all night about covering payroll. When you work night and day, night and day, only to realize that the money that just came in the door is about to go right out … you start to think, “Take this job and shove it!” Too bad there’s no boss to say that to!

So what’s the answer? Well, most of the business owners I meet that are in this situation think they need MORE business, “If I just had five more clients…” If you had five more clients you’d be working 20 hours a day and turning out an inferior work product!

Fewer clients, but more profitable ones.

Sounds like a great goal, right? But how do you get there? You are already starving with the clients you have, and you can’t just give them up! Don’t worry – I don’t want you to do that (just yet). I want you to go through a process, one in which you start to change your mindset and make tough decisions, and make more of a profit as a result … but we’re getting ahead of ourselves. Let’s walk owners of service businesses from a state of frustration to a much better place – a state of gratification! I know, money won’t solve all of your problems, and you are right there. But money can certainly take the edge off the issues you do have!

You need to do five things:

  1. Project yourself as the “costs more but worth it” provider.

  2. Charge for value, instead of by the hour.

  3. Stop discounting your services.

  4. Factor in your costs.

  5. Raise your prices!

  6. Price Increase Notice Samples

1. Project yourself as the “costs more but worth it” provider

What do my prices say about my company? If you struggle with how to answer this, think about your buying habits.

You need a new accountant. Now that your business has grown, your taxes have become very complex, and you need someone who can get the job done right. You get two recommendations from people you trust. One recommendation is for the “cheapest accountant in town,” and the other is for the “higher-priced accountant but she’s worth it.”

Of course, you choose the “higher-priced accountant, but she’s worth it” accountant because you need this job done right! Now think about – don’t your clients need the job done right too? Don’t you offer a valuable service to them?

“My business is the best!” you say without an ounce of hesitation!

Of course it is! Now do your prices reflect that?

“That’s a good idea, in theory, Brad, but I don’t want to raise my prices and lose clients.”

Oh, ok. So you’re good with making barely a profit at all, too?

Yep, I knew you would be back. Let’s dig into this idea in a little more detail.

If you are a service firm with a cost structure in which 50% of your sales dollars go to pay staff, 40% covers overhead, and the rest goes toward partner profits, then a 10% price increase would double your profits. (If your profits as a percentage of sales are lower, then the profit increase from a 10% price increase is even more dramatic.) So far, increasing prices is an excellent thing, right?

“But wait a minute, Brad – if I increase my prices, I lose some of my clients. My sales will drop.”

That’s true – so how much would your sales have to drop to reach the same level of profits? If you are billing $500,000, with profits of $50K (10% of sales) and you increase your price by 10%, you could lose 16% of your clients and make $52K profit (assuming your expenses are all fixed and your salary costs are all variable). You could make MORE, working LESS. (Try it for yourself here.)

Wouldn’t you rather do less work and earn the same amount?

Also, who would buy your services at that higher price? Only those companies who knew they would benefit from your work. Only those companies who really needed you and would do anything to improve their situation. Do those sound like clients you want to work for – ones who follow your advice, get great results, and tell their friends and colleagues how great you are? You bet.

Also, the more focused your firm, the better you can communicate the value you offer to a client, the more referrals you get, and the more money you make. If a client needs the type of service that you have done many times over, you are more confident and insightful in the new business meeting, you take less time and risk building the proposal, the more efficiently you can deliver the work, and the more likely you are to get referred. Go narrow, become good at something and stick to it. If you are getting bored, find a hobby.

The good news is that as a starting point, I’m going to suggest that you leave your current clients alone. I’ll get to how to raise your prices in the last chapter.

2. Charge For Value, Instead Of By The Hour

Let’s look at a typical day for a service provider, Marcus.

On the way home from a long day in the office, Marcus thinks about his day. He spent the morning working hard on a client project and billed five hours for it. But as he thinks about it, he knows the client won’t like it because this particular client doesn’t like anything. He didn’t realize this client would be so high maintenance and demanding when he bid the project, and now the project is headed over budget. Meanwhile, his team’s been working on another project all week, and it should have just needed some finishing touches to get it ready to go out the door. But when Marcus opened the file and started reading, he realized it still needs a ton of work, and the team is already over budget on the project! Argh!

But there was one good thing that happened during the day. One of Marcus’ clients called looking for some expert advice. Marcus kicked into action, offering some great solutions to the client’s problems in just 20 minutes. The client says to him, “You are my hero, Marcus.” That lifts Marcus for a time, and he makes a mental note to charge the client an hour for his time (which he, of course, will forget to do).

Marcus then starts thinking about a meeting he had at the end of the day. Marcus has a great solution for an issue that his client thinks will take about 50 hours to solve. Marcus, however, already has some ideas from a project he’s done before and thinks he could get it done in 10 – 12 hours. But this could be a real breakthrough for the client, and they are prepared to pay for up to 50 hours to get this right … but Marcus can do it in 10, “Maybe I could milk it out to 15?” he thinks. But wouldn’t those extra 35 hours of billings make up for the big hole in the sales for this month?

This story demonstrates the problems with charging by the hour. Sometimes you spend solid hours of work, but don’t produce any value for the client. So you write off hours. Other times, your skills and experience create significant value for the client in a short time, but you have a hard time capturing the value you created. Other times, you get the chance to do several projects that are relatively similar, so the first client ends up paying more, and the other clients ride their coattails. So, if you get better at what you do so you can accomplish it faster (improved efficiency), you get paid less (that’s not right).

Lastly, there are times when all of your training, experience, and hard work come together to create a brilliant insight in one moment (usually when we are in the shower, or behind the wheel of the car). How do you bill for that? Hourly billing ensures that you earn a minimum wage for your work, but it does a lousy job aligning the value you create to the revenue you receive.

Worse yet, charging by the hour usually turns into a “heads the client wins, tails you lose” proposition.

If things take too long, you can’t usually charge all the time (some of it gets “written off,” effectively lowering your hourly rate). But if things go well, and you brilliantly get something done in half the time, you have a hard time charging more. Some clients go further by mandating that you bill hourly against a cap or maximum project fee. This is the ultimate set-up for they win (if you are fast and efficient), you lose (if you run into a roadblock or things don’t go as planned).

Now let’s look at it from the client’s perspective. They are coming to you because you have significant expertise. They tell you they have a problem and need a solution. If you’re the one with the solution, should you be able to estimate what it’s going to cost to fix it? They are uncertain, and that’s why they turn to an expert. The expert should provide certainty.

The cost of the engagement is really basic. How do I, as the client, know I’m going to get value from this engagement when you can’t tell me how much it will cost? If you are going to provide an estimate to remove the client’s uncertainty – why not make it a fixed fee assignment?

Further, when you bill for time, clients avoid spending time with you. Every service provider I know wants to be a trusted advisor for your clients; you want them to call you with challenges and opportunities as they come up. That way, you can have more influence and discover additional projects and ways that you can help them. Usually, the earlier you get involved, the more your expertise can influence the outcome. But pricing by the hour makes this risky for the client. “I don’t know if this is worth her time…”

The better you get, the less you earn, so you have to raise your rate. This is okay if you are able to hire cheaper resources to do the more mundane work. But it often results in pushback from the clients about your rate. “Why am I paying $250 an hour for you to do that?” Again, more time gets written off, or you end up discounting your rate to make the client happy.

Hourly billing shifts the cost risk from the service provider to the client, and in most situations, the service provider is the expert. You should have a good idea of what it is going to cost, and if you don’t, you should (how about an assessment phase?). If you are the expert and you know (approximately) what it is going to cost and (about) the value the client will realize for your work, then hourly billing does a poor job of aligning the client’s needs with the provider’s needs. It puts you at odds with your client. How do they know if another hour or two will make a huge impact, or pad the bill?

If you don’t believe me, Jonathan Starks has written a whole book about this; Hourly Billing is Nuts!

Bill for value.

At some point, many service firms decide they need to find another way to charge their clients besides hourly billing. They can do this by defining the beginning, middle and end of a project, so that they can use some type of project fee or retainer/ fixed-monthly-fee arrangement.

The idea here is that a client has an easier time determining the value they will receive from a project. So, instead of working out what it will cost you to complete a project, you can calculate what value the client will receive and see if we want to do this work for that price. Project pricing then provides an incentive for the service firm to complete the work at a value that ensures the client will earn a return.

When you charge a project fee, you preserve the upside (if you finish quickly, you earn more money) but accept some downside risk. You can mitigate some of the risks by negotiating change orders as the project progresses. One of the most significant advantages of project billing is that it requires the advisor to continually communicate with the client about how the project is going, warning them when it could be getting off track, and identifying risks and mitigation strategies.

The major downside to this payment mechanism is that it requires a skilled account manager/ project manager to stay on top of changes in scope and negotiate associated changes in payment.

If you charge a retainer (e.g., a fixed monthly fee that represents the expected value that the client receives), you may not get paid for every hour although not every hour you spend on a project creates value. So, sometimes you will have to over-deliver in order to deliver value, and other times you will provide TONS of value in a few minutes and therefore be able to push more work out into the future and make more money per hour. In most of the firms that bill this way, there is a schedule with a list of deliverables to complete this month, and some forecast of tasks to complete in the coming months, but they retain the flexibility to use the brain of the advisor in any way that is needed. This works best for smaller firms or where the client is “renting” the advisor’s knowledge and skill on an ongoing basis. The advisor remains in control of the “effort” they are delivering (you can always set deadlines in the next month) the client determines if that “effort” produces a good value. Again you need to be in constant conversation with the client about what value they receive to ensure that you are meeting their expectations.

Lastly, the world of software programming has brought us a framework known as Agile, or Scrum. In this methodology, you acknowledge that the project has tremendous uncertainty. So instead of creating a huge monolithic budget for a very uncertain project, you break the project into short phases. Each phase produces distinct value for the client since there are deliverables completed in each phase. At the end of one phase, the scope for the next phase is created in cooperation with the client and those doing the work. This transparency builds trust in an uncertain environment and allows the service provider to bill a fixed fee without taking on enormous risk.

Charge for results.

The last is pay-for-performance. Clients love it, but in most professional-service businesses, there is still a HUGE gap between idea and execution, in which the client can turn your valuable idea into clay and you both end up with nothing. For this reason, it’s been difficult to adopt. I have seen it used in a couple of different ways.

  • Fixed project fee, with guaranteed results. In this case, the service firm will continue working until results are achieved.
  • Fixed fee (or monthly retainer) with a bonus or increased rate depending on achieving certain goals.
  • A “tip” system, where you and the client agree to a price, but you add a “tip” to the invoice that they can pay or not pay according to their perception of the value they received.

When there are tangible outcomes to achieve, this pricing mechanism works well. Investment bankers charge huge success fees when they sell a client’s business. Recruiters often are paid only upon a successful hire. Even if you don’t have such a tangible outcome, how can you tie results to fees? Here are some options to consider.

  • A “bonus” payment if a project is completed by a certain date. Or extra payments if work extends beyond the budgeted timeframe (due to delays on the client side, of course).
  • Think like an athlete. Sometimes athletes get bonuses if their work wins an award, or they have a record-breaking year. Could you ask clients for bonuses in those circumstances?
  • Measure client “satisfaction” or the end user’s perception of the value of your work and get some kind of escalated fees based on the results.

Some of these may seem far-fetched, but the only way to know if your client would accept them is to try them out. Brainstorm with your team to see how you might capture a little more value and then experiment with some of those ideas. You might be surprised at the results.

3. Stop Discounting Your Services

Once again, let’s put you in the shoes of the buyer. When you are buying services, and someone quotes you a price, say $20,000, and you get that look of shock on your face, “Wow, that’s a lot more than I thought….” you may be about to say, “But we really need it, so go ahead.” But before you can say that the service provider says, “Gee, it is a lot. I think there are some places where we could cut that back a bit, how about $15,000?” Now how do you feel? Where’s your confidence level in this service provider? What messages did they send you?

Most likely you were happy with the idea of suddenly getting a 25% discount, but didn’t it introduce some doubt into your mind? What was that $20,000 number? Was that a trial balloon? What happens if I make that face again? Does it suddenly become $10,000?

Offering discounts tend to have three consequences.

1. Discounting your prices devalues your services

You are communicating to the client that you need this business. This raises the question: Are you proposing this because it’s something you are good at and can deliver superior value for the client? Or are you proposing this because you need the money? This isn’t a question you want the prospects wondering about. You want them to know that you are proposing this because it’s something you are good at and you are confident in the value you will deliver. If that’s the case, then don’t discount.

2. Discounting creates uncertainty about what the “real” price is

If you came down by $5,000, would you come down another $3,000? Another $2,000? There is a lot of uncertainty from the prospect’s side about how services are priced; they suspect that you just make numbers up (I know some of you do, but that’s a topic for another book). When you drop the price, it tends to reinforce that notion and encourage them to reach out to another provider to get a “sanity check”.

3. Discounting encourages your prospect to negotiate every project with you

When prospects tell you they don’t like your price it’s not a sign of rejection; it’s a buying signal. They wouldn’t bother to negotiate your price if they didn’t like your proposal or want to buy from you. So negotiating means they want to buy from you. But there’s something in the way. Either your price is more than they have to spend, they don’t have the money, or you haven’t demonstrated enough confidence to command that price.

What kind of guarantee can you offer to boost your prospect’s confidence?

I had a client who was a personal trainer and weight loss coach. As part of his new client intake process, he would guarantee that the client would lose weight. If the client expressed doubt about the weight loss, he would say, “I’m so confident that you will lose weight that I will bet my house on it. If you don’t lose weight, I’ll give you my house!” How much confidence do you think that gave his prospects? Do you think they signed up when he expressed that kind of confidence? What kind of guarantee can you offer to boost your prospect’s confidence?

But there are times when no amount of confidence will open up a client’s budget enough to get your full fees. But you don’t want to walk away from someone who wants to hire you and for whom you believe you can create real value. So how do you bridge the gap? Sometimes you can reduce the value you are offering to match their budget. Is there a way that they can do some of the project themselves? Maybe they take responsibility for gathering the data, or for writing the report? Can you do the project in phases? Reduce the scope to the level that they can afford now, then do the rest later? Can you risk some portion of the payment on a success fee?

You can reduce the cost of your services, but only if you reduce the value that they are getting by a similar amount.

4. Factor In Your Costs

Keeping track of hours is a drag. Employees don’t like it; they feel like “big brother” is looking over their shoulder (and owners sometimes treat it that way too!). Owners don’t like it either. It’s one more thing to enforce, manage and analyze.

However, tracking time (and looking at the reports) can have a couple of effects:

Your people will start paying more attention to how they are spending their time.

When you make people write down where their time is going, they will realize that their time is a valuable commodity (otherwise why would you be going to all this trouble to track it). If their time is valuable, they often start treating it with more care.

Once you start tracking time you can also budget it. “I’d like to see you complete this project in 20 hours. Let’s touch base once you’ve got your concepts done, say, after 8 hours?” Conversations like this start to put boundaries on performance.

You will need to police where people are charging their time.

When you start tracking time, people will want to report a lot of productive time. They may even be tempted to “pad” certain projects to make sure they report enough “billable” time. This, of course, is noise in your system. To know what the cost of your projects, and where your work is going, you need to know the true costs associated with any job or task. So this “padding” creates inaccuracy and decreases the value of the time-tracking exercise.

The best way to facilitate this is to have a project manager who is responsible for the profitability of the project. Reward him or her for keeping the hours on the projects that they manage low. Have that person approve the hours charged to his/her project. That minor watchdog effort usually keeps the time reports pretty clean.

You will have better information about what jobs cost you, and which jobs are profitable.

When we get into the habit of charging for value, then we need a mechanism to determine which projects are profitable. I’m not suggesting that you use this cost information as the basis for your pricing (remember, clients don’t care how many hours it takes you). But if there are projects that you aren’t consistently earning a good profit on you need to either look for a different way to complete them or choose not to take them. Conversely, are there some projects that you are highly profitable? How do you get more of those?

Track “unbillable” time too.

Some firms make the mistake of thinking that “billable” time, that is, time spent on client projects is the most valuable time and focus their tracking on that. However, “unbillable” time or time spent on training, administration, planning, and selling are arguably more important than the billable time. Your firm’s current profitability is based on your billable time, but your future profitability is based on your unbillable time. If you are billing too high a percentage of your time, you cannot grow, or get better at what you do. Budget a certain percentage of your time to training (5% – 10%), Administration (5% – 10%) and planning (another 5% – 20% depending on role) and if you aren’t spending enough in these categories you should see that as a risk to the future health of your firm.

Don’t strain at nits.

Keep in mind that tracking, reporting on, and analyzing time is a cost for your business. Don’t go overboard. You want to track enough detail to know where you are making money, and potentially show you who is most productive, but you can go overboard. I wouldn’t track finer than quarter-hour increments. Don’t go down to the task level in projects; try to keep it high level. You want to use this as an indicator of where your firm is investing their time (and therefore their money). Don’t use time tracking as a punishment or reward system for your people (that tends to encourage people to falsify and pollute the data). Just use it to figure out where your costs are going.

5. Raise Your Prices!

As a first step, resolve not to accept any new business below your newly established higher price. If you feel pressured to take on business just to keep your staff busy, it’s better to reduce the size of your team than to discount. A leaner team will be more efficient, and you won’t feel so much pressure to discount your price.

Publish new contracts, price sheets or rate cards and stick to them. Once you start receiving business at your new price level, you will know your service is worth the higher value that these new clients have assigned to it. It takes courage and confidence to ask for that higher number, and some prospects are going to say no. That’s OK, remember, you can have fewer clients if you are making more on each. If people aren’t complaining that your price is too high, then it’s too low!

Once you establish the new pricing with your new clients, then return to your old clients.

Have a face-to-face meeting with them, preferably, and review with them the value of the services you deliver. Let them know that you have researched your competitors and found that you are offering more value for less money, and as a result, you are taking on new clients at the higher price level.

Then, raise their prices with an effective date two to four months in the future. This gives you a chance to finish current projects or services at the present price while allowing them time to adjust their expectations and budget for future projects or services. If it’s worthwhile to you, then offer them the chance to pre-pay now for future projects or services at their current low rate. This helps you secure their future business as well as put cash in your pocket today!

Setting your prices at true market value will secure client loyalty and respect, allow you to invest in and grow your business, and improve your profit margins. If you, as the business owner, don’t value your products or services, you can’t expect your clients to value them either.

6. Price Increase Notice Samples

As I mentioned above, once you’ve gotten a number of new clients to accept your new pricing it’s time to go back to your existing clients and introduce the concept to them. It’s likely that they will express surprise, and sometimes even outrage, that what they were buying from you for $X is now going to be $X * 1.3 (or more) so it’s important to do this carefully.

1. Check in on the work you have been doing.

Before you talk about the prices, you need to check to see that there aren’t any unresolved issues in your relationship. Ask them point blank: “Is the work what you are expecting? Do you feel that you are getting a good value for what you are paying us?” If there are any issues, they will come up when you start talking about price, so put those to bed first.

2. Recognize the value you have been creating for them.

You have been doing some great work, right? Be prepared to remind your client about that. It’s easy for the client to get into a “What have you done for me lately?” mode. It’s OK to remind them about some of your accomplishments, and the way your services have progressed so that they remember. Also, be prepared with a list of ways that you’ve upgraded your offering to them, new people, better technology, better service. You are offering more value — you need to be prepared to show it.

3. Let them know that others have been paying these rates.

Your price increase isn’t arbitrary. You started by first raising your prices with new clients. That establishes that there is a market for your services at that price. You are not here to negotiate — you are here to inform them that this is your new rate. The fact that others are paying it makes it more real (to you and to them).

4. Give them time.

This is going to come as a shock to them — so give them some time to get used to it. Set the date that the new rate goes into effect months into the future. Give them time to finish up any work you’ve already started. Recognize that you might be messing up their budgets; so if they have things pre-planned, find a way to accommodate them. Letting folks pre-pay at the old rates can be a great way to do that.ensuresures that you get to do the work (and that you don’t have to wait to get paid) and gives them a way to stay within their budget.

5. Put a firm end date on it.

But even these accommodations have to end at some point. After that, it’s all at the new rate. You’ve given them time to plan — and yes — shop around if that’s what they are going to do. Now it’s time to get paid.

6. Don’t Apologize.

You aren’t sorry. You are proud, you are confident, you are sure that your work is worth this. You’ve been letting them get it for less for a while. It’s time for them to pay you what you are worth.

When you send out a price increase notice, raising your prices doesn’t mean that you have to break up with your old clients (though some will leave) but you do need to reestablish your value and the relationship. I know it seems daunting, but it will be worth it when you start getting paid that higher rate!

Sample letter to clients about your price increase:

Here’s how one of our clients did it:

As my responsibilities have evolved the past year, I recently took the time to evaluate my workload and pricing structure. I am going to be implementing some changes in the coming weeks and would like the opportunity to have a quick conversation about what specific changes in pricing you can expect. Whatever means of communication is best for you (phone, email, video chat) works for me. Just name the date and time.

I very much value our working relationship and hope we’ll be able to continue working together.

See, that was easy! Once they set the appointment you go through the steps outlined above.

Conclusion

Real Talk: How I Did It

I want to end this book with a personal story that illustrates that I do practice what I preach. In January of 2009, I lost half of my clients. The economy was tanking, and they got scared and chose to cut back. So I had to hit the pavement HARD and got some new clients in the door. In the second half of 2009, I signed up about half the number of new clients as I ordinarily would. In a down economy, everyone wants to spend less. Prospects were trying to get me to lower my prices even though I knew I could deliver tremendous value to them, especially given the economic climate. But I held firm – as hard it was knowing that I needed money coming in the door – because I knew what my services were worth and I wasn’t going to compromise. Some prospects said “See ya!” while other ones who knew I could provide tremendous value to them said, “I just don’t have the money right now; call me in six months.”

I found a couple of larger clients in the meantime who could pay my full rate, and valued what I do. Slowly our core business came back, and now our business is as strong as ever. If I had taken on a bunch of work at lower prices, I’d be kicking myself now. My shop is full today of clients who are paying full price. Because they are paying full price, I can afford to hire some additional advisors to help me deliver on this surge in business.

We are billing at a record pace – and I still have time to work on creating content and writing this resource, and helping businesses like yours.

I’m not telling you these things in theory.

I know they wok because they’ve worked for my business. I’ve seen them work for clients’ businesses and they will work for your business too. I hate to see a business owner working harder and harder every year, skipping vacations and not able to earn a decent living. Moving forward, focus only on the things in which your business excels. Find good clients who value what you do and will pay you for that value. Raise your prices, and get away from hourly billing. Keep an eye on your spending. By doing these things, you can turn things around and make money you’ve always thought you would make, have some extra free time, enjoy the freedom of owning your own business.

If you are working on raising your prices I’ve created a complete guide to Raising Your Prices without Losing Clients. Grab your copy to make your job a lot easier!

Filed Under: Articles, Process

Subject: Change of ownership announcement letter Dear customers, This letter is . This Price Increase Announcement Letter will inform your customers that the.

price change letter to customer
Written by Arashizilkree
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