Price increases to a customer...

[doobin]

Hi all

 

Was informed last week by the contracts manager for an estate agent my company carries out contract gardening for that their commission they take from my invoice will be increasing from 10% to 15%. That's a 33.3% increase

 

Anyway, just drafted this to send the contracts manager:

 

"Just a quick note to let you know that I have increased my prices to you this year by 9.05%. This is comprised of 4.5% to cover the average rate of inflation for 2011, and a further 4.05% to cover the balance of the 33% increase in your commission rate which is not accounted for by inflation. As estate agents I am sure you are only all too aware of the importance of increasing rates, rents and the like in line with inflation every year."

 

Sound fair? Anything else you can think of to sweeten it?

 

They can like it or lump it anyway

 

Point being, with an average RPI inflation in 2011 of 4.5%, you need to put your prices up by at least this to avoid falling behind.

[morten]

Hi all

 

... their commission they take from my invoice will be increasing from 10% to 15%. That's a 33.3% increase

 

That works out as a 50% increase (100 * 5 / 10)

[doobin]

That works out as a 50% increase (100 * 5 / 10)

 

You're a star, thanks mate!

[doobin]

Should also read 'a further 4.55% to cover the balance blah blah. Looks like the calculations are correct but the 'show your workings' bit needed adjustment!

[pleasant]

With respect your draft come across as quite spiteful and bitter and it's quite unprofessional giving specific part percentage point breakdowns. I don't think this is necessary, simply give a percentage increase and don't bother with a finite breakdown- you don't need to justify each point of your increase.

[JimM]

I'm with pleasant about being pleasant

 

The text of your note may inspire them to look elsewhere. A cheery note that regrets that your rate has gone up to cover increasing costs should be sufficient and not P them off.

[Tom2020]

Well done for standing up for your self, there are too many people who would not say a word incase they lose the work. Why should some one charge us more when we can not charge more.

[Andy Collins]

With respect your draft come across as quite spiteful and bitter and it's quite unprofessional giving specific part percentage point breakdowns. I don't think this is necessary, simply give a percentage increase and don't bother with a finite breakdown- you don't need to justify each point of your increase.

 

Why unprofessional? Anglian water have just announced a 5.4% increase in line with novembers rate of inflation. Business is business, they've increased their rate, why should the OP not increase his. At the rate this country is going, well all be working for nowt.

[pleasant]

I didn't say he shouldn't increase his rate did I.

[Andy Collins]

I was referring to the first part of your statement