Over the weekend a writer acquaintance and I were discussing rates. My writer friend was planning to raise her rates within the next couple of months. She asked whether or not I thought she should send her current clients an email explaining why she was making this decision.
I asked her to think of businesses she regularly patronizes – the local cable provider, grocery store or favorite restaurant. When they raise their rates, do they offer explanations? It’s a given in most businesses that as operation expenses increase, rates must increase as a result. I suggested she take this same stance with her rate increase.
Sending out an explanation for a rate increase can almost seem as if you’re seeking approval for a logical business decision. Your rates have to cover business and living expenses, and there’s absolutely no reason to apologize for that. I suggested sending out notices altering clients of the rate change giving them a chance to schedule projects at the current rate before the price change takes effect.
Do you let your clients know about rate increases?