Notifying clients of a rate increase

Lisa Lane-Collins

Lisa Lane-Collins

Sophomore
Dec 9, 2012
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16
Adelaide, Australia
What's the good, formal, courteous way to do this?

I want to inform a venue that my rate is going up, give them a date that new rate comes into effect and ask them if they still want to book me. It's not a negotiation, just a "I will be more expensive as of date x, do you wish to continue using my services?"

Also, how long does the notice need to be? Two weeks? One, a month?

Further details, I really don't care if I lose this job, and I'd really like the rate to go up if I'm staying there, so the shortest duration of time that is reasonable is my preference.
 
Re: Notifying clients of a rate increase

I would say anything you have booked already is at your current rate unless they agree to pay more. I would approach with a specific date and amount of increase, but after existing shows are completed.
I don't know the exact details of your situation though, so...
 
Re: Notifying clients of a rate increase

It's more abstract than that. If they have a band, and they do most Saturdays, then I'm "booked". Proper set in stone confirmed shifts though consist only of this weekend. I won't know about next weekend until a couple of days before.
 
Re: Notifying clients of a rate increase

Lisa Lane-Collins said:
It's more abstract than that. If they have a band, and they do most Saturdays, then I'm "booked". Proper set in stone confirmed shifts though consist only of this weekend. I won't know about next weekend until a couple of days before.
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Ah, so they are only actually booking you a couple days before. IMO, you aren't booked unless you can count on being paid for the time slot you have reserved for a client.

Are you being paid hourly, or a nominal flat rate for each shift (the length of which you don't know until a few days in advance)?
 
Re: Notifying clients of a rate increase

It sounds like asking them if they still want to book you isn't necessary if they call you on a per gig basis.
Let them know that you're able to charge more elsewhere, or that the job is more demanding than it used to be, or that you're a better tech than you used to be, or whatever is the reason. Then it's up to them if they call you again.
You don't have to have a reason, but it may make the difference between them looking for someone else, or objectively thinking about whether you're worth the increase.

Jason
 
Re: Notifying clients of a rate increase

When it comes to sales, being in control of the sale is important. Stating that your rate is changing is fine, but asking if they still want to book you implies that you don't feel that they will and you're likely to lose the client. NEVER ask permission to raise the price. When you have decided what the price for your service is, set a date that you will be charging that price and go with it. Symbolic dates for a price change tend to be easier on existing customers. Eg, on April 1st, you start your new pricing scheme.

If they don't want to pay your new price, let them tell you that. Don't ask for objection.
 
Re: Notifying clients of a rate increase

Without knowing the people involved it is hard to offer useful specific advice, there are several moving parts to the dynamic.

In general they look at your fee as a cost, not an important part of how they make money so any increase will be looked at unfavorably, that's just business.

Put yourself in their shoes. They should respond better to advance notice. It should sound more professional to offer them a fixed rate for fixed period.

Submit a modest increase (starting X gigs from now) and promise them you won't raise your rate again before 2016 when you plan to review it again. Maybe ask for less than you want this time but plan to ask for a similar amount more next year, and so on. This will help them plan.

It is hard to raise prices on existing customers, this is why you should never take jobs for less than you are worth, they will expect that price next time.

Good luck...

JR
 
Re: Notifying clients of a rate increase

Hopefully there isn't another company in your area looking for work and willing to do it for your old price.
Like JR says, hard to shift gears after the fact.

Add a fuel surcharge or something.

I would give them 30 days notice for a one time increase locked in for a year or two. That could make them feel better about the increase and they can count on some consistence in their budget going forward.
But, be prepared for the enviable, just in case.
 
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Re: Notifying clients of a rate increase

Thanks for the feedback. About ready to send them something. Feel like 2 weeks notice would be ideal but have a double booking next weekend so if they want me to juggle their gig they're going to have to pay the extra. (More context, they pay a ridiculously low rate and I'm asking for a token $10 increase, it's trifling, I don't mind if this job falls through though).
 
Re: Notifying clients of a rate increase

Jordan Lahr said:
Should they really have to pay for you double booking yourself?

Sent from my XT1060
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Take some time and get to know the business you are in. No matter what it is. An increase is a big move, but if the business can support it and you need it to stay in business and grow than increase you must.

However, a double booking is in your control and not a customers problem. Furthermore if the deal falls through your cred will suffer if it is found out that you just jump off a commitment to another job if it pays more, or you like the venue or customer better. Not a wise long term move. If you are going to be in this profession be professional.
 
Re: Notifying clients of a rate increase

I have a simple rule for booking me: first comes, first served. Jumping to another job just because of better conditions is bad in my opinion. And if I want to increase the money I will get for a job I will say this before I do the job. When I do some work on regular base, I announce it minimum a month or two jobs before the change. If the customer aggree everything is fine, if not so we go seperate ways. As long as I am fair to the customer I will be called in the future for some reason. This is just my experience.
 
Re: Notifying clients of a rate increase

Klaus Mock said:
I have a simple rule for booking me: first comes, first served. Jumping to another job just because of better conditions is bad in my opinion.
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While I have a very simlar rule, it only applies when there is a solid booking (read: I know I will be getting paid for my time). Speculative bookings such as "can you be on call any time we schedule a band" don't count, because they are impossible to schedule around.

There's opportunity cost to blocking out a schedule, and money talks. In the case of the OP, if the double booking is due to a solid booking elsewhere before the speculative one got confirmed, that's not a double booking. That's a failure to schedule you far enough in advance, and you aren't available.

(Yes, I occasionally make exceptions. But they are typically for known clients and include a distinction between a "penciled in" availability and an actual booking)
 
Re: Notifying clients of a rate increase

Now the paranoia sets in.. They approved it, did I ask for enough? maybe I should have asked for more?
LOL you never know how much is too much until you lose all your customers, and then its too late. sounds like you probably found a good happy medium

Jason
 
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