Rate Increase Advice

[Old Greg]

If the OP thinks he's is a business and believes this to be a valid way to do business I wonder if he realises many suppliers at large clients are contractually obliged to reduce their costs by 5/10% at each renewal? Can't think he'll be overly happy with that.

That doesn't sound fair.

[northernladuk]

EE do it every year - the difference is they tell you rather than asking (and hide something in their terms+conditions) - put it in your contract from day 1 and you're golden!

What the 2016 EE price changes mean for you

Isn't that B2C and we are B2B though so not really a comparison.

[pr1]

Isn't that B2C and we are B2B though so not really a comparison.

not if you have a business plan?

[northernladuk]

not if you have a business plan?

I tried doing a business plan when the BETs came out. Somehow I don't think Turn Up, Work, Go home, Invoice, really cut it.

[gables]

OP. You have found out that, in a lot of cases, the rate you start on is the rate until the year 2099 as far as the client is concerned.

Chances are there was lot of budgets sorted to get an expensive resource in there in the first place. So these budgets are now not going to get increased EVER.

Crap, I just doubled my rate with this client at renewal

Back in the day used to automatic rate rises on extension, that was the nineties mind

They were the days

[pr1]

I tried doing a business plan when the BETs came out. Somehow I don't think Turn Up, Work, Go home, Invoice, really cut it.

was that humour?

a business contract...

[TheFaQQer]

Crap, I just doubled my rate with this client at renewal

NMW moving to living wage?

[TheFaQQer]

That doesn't sound fair.

That's life, Jim.

It's particularly prevalent in the motor industry - someone I was chatting to a while back was highlighting that his business costs have now increased significantly because of the changes to the minimum wage, whilst at the same time he had to cut the amount he charged the client every year by 2%.

The government defence was "but you'll pay less corporation tax in the future" which didn't really address the prospect of going out of business in the meantime, or not paying much corporation tax because the company now makes very little profit

[Mincepie]

1% not worth even discussing like everyone already said. Look for another gig while doing this one and if something firms up you can decide to stay as contracted or bugger off somewhere else.

[WordIsBond]

Nobody leaves a contract over 1%.

So there is no risk for them in saying no.

So they said no.

And now you can't ask for more, because they know you'd settle for 1%, so they know you'd settle for 0%. The only way you can ask for more is if you actually get an offer elsewhere for more, and then you might as well go elsewhere, maybe learn a little something different that makes you a little more marketable.

You'll now probably never be able to ask this client for an increase without actually leaving and then coming back later.

If you ask for too much, they'll laugh and say goodbye, but if you ask for too little, they'll laugh and say you are having it on.