The time has come, 3 years in, to increase my fees. I want to put an email together to notify clients. I'm also going to adopt the ingenious idea of Chris, who adds on a percentage, the later the records are sent. Has anyone created such a letter/email? I don't want to sound too corporate with it. Any advice?
Oooh Ive just had exactly the same issue Michelle. Not tackled it yet with everyone. I did go with the line no increases in three years/increased costs for one (easily justified on the back of his changing the way he worked). Rather than showing that you are adding fees if they are late, show it as those who are earlier get it cheaper. Same process, sounds better. Oh and one I havent yet tried but I already do with some new clients - stepped increase, so the impact isnt so off putting. This is the price I want to get to, but I will start at xx for xx months. I do it with brand new businesses (we will grow together sort of view, but always with a timeframe).
Would love to hear how others have worded it - I am rubbish at this sort of theing along with selling myself and that essentially what you have to do with these things isnt it.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I always go for a sh!t sandwich. Start and end positively and put the increase in the middle. So remind them of the value you add to their business, put in the increase details and end with looking forward to a stronger relationship. Make sure to add an invitation to get in touch with any questions or concerns.
In our time working together, I hope you have felt the benefit of my support and knowledge. For over 3 years I have kept my value-for-money prices, and due to increased costs, the time has sadly come where I need to increase my fees.
Currently, I am charging you £x for bookkeeping and VAT, and £X for accounts and tax work. The new fees will be £X for bookkeeping and VAT, and £X for accounts and tax work. PAYE and Annual Return costs will remain the same.
If you have questions or concerns, I invite you to get in touch. I look forward to our relationship continuing in the coming years, going from strength to strength, as your business develops.
If you don't mind the input from a novice (I only started self-employed work this year) it sounds very good but I don't think I would use the word 'sadly' and maybe replace it with something like 'I find it necessary to introduce a small increase to my fees' .
All is well, Michelle, thanks. Just really busy with the new venture.
I would make the value part more specific. Something like:
In our time working together, I hope you have felt the benefit of my support and knowledge. For over 3 years our input has helped your business to go from strength to strength. I have given you the time and information you need to increase your turnover by £20,000 per year, and saved you £1,000 in tax by claiming for x that you weren't claiming for before. (Obviously change this to suit, but be specific about the impact you have made to their business)
It is only through remaining competitive that we can continue to provide the levels of support your business needs to move to the next stage. This means that from x we will be increasing our fees to £X for bookkeeping and VAT, and £X for accounts and tax work. PAYE and Annual Return costs will remain the same.
I look forward to continuing our excellent relationship for many years to come, and providing the very best support to you and your business. You'll realise that I only want to work with people, like you, who are serious about growing their business but should you have any questions regarding this increase please call me on
Wow, Chris, you really know how to knock it out of the park! There are quite a few clients I can quantify savings to, so will pick out these and use your suggested approach. Any that are bog standard compliance, I will leave the figure part out.
Whats you new venture? I haven't logged in for a while and might have missed you mentioning that...
I've recently started a cross profession organisation for bookkeepers with another two 'weel kent faces' as we say here, Mike Foster and Christopher Wales. It's called The Bookkeepers Alliance, and is focused on CPD and offering help in actually getting a bookkeeping business started.
We give discounts off fixed price fee if clients get books in early and premium if late.
So for sole trader cut off is 31 July to get 10% off their fixed fee (most are either 31 March or 5 April) year end. If records handed in in Nov is 10% on, Dec 25% on and Jan 33% on.
Similar deal for Ltd Co but only change in deadlines is to 3 months after year end for 10% and month 7, 8 and 9 after year for add ons.
Hi Chris, wow that sounds great! I dont know how you find the time!!
Mark, that's a good approach... definitely need to put something in place, as last year I was bombed out, after twiddling my thumbs in the summer (well, it gave me time to do some DIY work, but still!)
(well, it gave me time to do some DIY work, but still!)
Would you believe I can't do DIY to save my life!! I wish I could but it's totally beyond me. A mate tried to teach me once but gave up when he found I couldn't do it.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
