Hello, i have a small business and have 1 great client, I have been with them for several years and have kept my hourly rate low, but my facilities contact tells me i should raise my price due to increased costs and such. How much should I raise it? What would be a fair percentage>?
You should check around with other roofing companies - act like a potential customer and ask their hrly rates. Increase yours to somewhere in between your current rate and the going avergae. It's dangerous to count on too much business from one customer. If you cut you loose, you could be out of business. Have you been increasing your rate every year - at least a few pct each year? If not, you're probably too low. If it's been more than 12 months since your last increase, increase it 5% now, and another 5% in January, annually after that. Do you have employees? Have you given them annual hrly increases? Is the percent increase you gave them more or less than the increase you passed on to your customers? If you want to discuss further thru email,write me at bobcat6259@hotmail.com - Bob (Accounting Mgr for a large Mechanical contractor) |
