Telling Client I Have to Raise Rate? -

I have a long-term client who has given me a lot of business and continues to do so. Some months back they asked me and other contractors to take a 30% cut on our fees to get them through some tough times. Things aren t perfect now, but seem to be better, although I don t have the details.I can t work at such a low rate indefinitely. I want to ask when they think they can pay my full rate (other clients are), and I d be satisfied with even a partial restoration of my whole fee.We have a good relationship, and I know they want to keep me, because the CEO strongly prefers working with contractors he already knows: he and I worked together well at another company years ago.Any negotiation suggestions? It has to be by phone or email because they re in another city.

I would start off my acknowledging what a great client they are and how much you enjoy doing Business with them. Tell them that a few months ago you extended a discount in good faith to them and that you see that they have been able to turn Business around (as you knew they would). Then state that with the economic conditions and rising costs of doing Business you need to come to an agreement as to what the new rate should be. Ask for a phone call to determine and discuss the new rate

you accomodated them by accepting less for a temporary period of time and you should inform them that that accomodation has outrun itself, that you cannot continue to perform at the lower ratedon t be surprised tho if he terminates your servicesI had a client who rented a business space for over 30 yrs and asked the landlord for some relief when times were badthe landlord did for a short period and when he raised the rent back to the original rate, he also did not renew the lease!