i need help writing an increase letter to my customers for two years?

Question

i'm self employed and want to raise the price to my customers that i've had for two years. i just don't know how to raise the price without losing the customer.

Answer 1

I wanted to take the time to sincerely thank you for your business over the past two years. Due to increasing cost of fuel and other expenses, I need to increase my rates from xx to xx effective August 15th. Thanks again for your consistent business.,
I look forward to continuing to provide you with exceptional service.

Sincerely, ME

Answer 2

There are a couple of ways to handle this type of situation. I would suggest the direct approach. let them know that after a certain date your rates for all work will be raised by x amount. chances are if they have worked with you for this long they see the value in your services. 2 years is a long enough time to raise rates in standard business (probably needed it sooner) You need to be confident in your own work and what that is worth. clients my squeak a little but unless your price increase is unreasonable they will stay with you.
If they are a significant part of your business and the increase is too much you may want to work out a deal with them. Let them know that you are raising your rates across the board but because they are loyal customers you are only raising their rates buy a smaller amount. I would suggest this only if you get serious push back. Chances are you will eventually outgrow this type of client and it won't matter if you loose them.
If they choose to move on because you want to make a living (god forbid a profit) then you are better off without them in the long run.
Good luck and value yourself. It is the small businessperson biggest fault.

Answer 3

It depends on the type of business you have. For instance if you are a bookkeeper you can raise you fees by maybe 10%. Explain that the increase is due to higher postage, gas prices, etc... Most people will understand but if they do leave then you will have to pound the pavement for more clients. Don't settle for less with the clients. If you let them brow beat you into taking less money it will never stop.

Answer 4

I am a business consultant -

the best thing you can do is rather than sending them a letter telling them that they have to pay more you send them a letter thanking them for there loyalty over the past two years and in appreciation for that loyalty you are going to offer them a 20% discount on ______ for the next two months to offset the new rate increases. Close the letter by rethanking them for their patronage and let them now that its customers like them that...

Trust me the best thing you can do is barely mension it, sneak it in while your expressing your gratitude, they'll feel special and cant complain because you did something special for them.

Answer 5

Here's a possiblity.

Greetings,

As you are aware, the inflation rate of this nation has been steadily rising over the past few years. This has obviously increased the cost of services oriented businesses and my business is no exception. Since 2004 I have attempted to retain my standard rates even though my cost have risen. However, my cost have now reached the point where I must increase my rates slightly in order to compensate for this rise in the cost of doing business. As of Sept. 1, 2006 my standard rate of $##.## per (hour, user, visit,etc) will be increase to $##.##. Please be aware that your September billing will reflect this increase.

I appreacite your business over the past years and hope that we can continue this relationship.

Sincerely,

Name
Company Name

NOTE: You might want to include specific examples of costs that have increased such as fuel (gas, diesel), energy (electrical, Natural Gas) and/or fees such as licensing, certifications, etc.

Hope this helps! (Oh yeah... SPELL CHECK!)

Answer 6

The letters the others have posted are very good places to start. If your customers like the services you provide, and they are happy with you, then they will probably pay the extra. It would be easier than finding other services. Just be sure to apologize for the inconveince and thank them for their buisness.

Answer 7

explain to them that the cost of gasoline and everything else is going up so you'll going to have to raise your prices to offset some of the expenses or go out of business, if they are loyal customers they will remain with you, I would, every other busines is having to raise their prices for the same reasons so they'll understand,

Answer 8

I'd go along the lines with chris's contribution.
It is better not to get too wordy... doing so can only lead to more questions and or speculation.

it is the same when calling into work sick. The boss does not necessarily need nor want to know what chunks are flying, how high they fly, nor whether when they fly, what color and elemental make-up they possess.