Price increases to a customer...

[Steve Bullman]

I get exactly what pleasant is saying and agree 100%. Just give them the price increase and miss out all the other part. The draft currently sounds like tit for tat and is more likely going to lose the contract for you than get the increase you desire. Just my IMO

[Pedroski]

All you need is

 

"Dear Mr Contracts Manager,

 

Please note that our rates are increasing by 9.5% with effect from dd/mm/yy. This change will be reflected in future invoices.

 

Should you have any queries concerning this then please feel free to contact me.

 

Yours sincerely,

 

Mr Doobin"

 

 

They'll either accept the increase with no questions asked and will understand that it's all to do with inflation and increase in fuel prices etc, or they contact you and you can explain that it's all to do with inflation and increase in fuel prices etc. Give them a month's notice and they shouldn't really have cause to complain. I wouldn't mention their increase in commission at all - it's just pointless. You know why they've increased their commission - it's due to increased business operating costs and a need to make a profit. Exactly the same reasons as you need to increase yours.

[doobin]

Thanks chaps, ammended.

[face cord]

Why not just round it up to 10%

[likeitorlumpit]

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.

 

look at it this way

the more you charge the more comission they get so it's not necessarily in their interest for you to be cheap cheap