![]() The letter serves to formalize the request and ensure that it’s taken seriously. In fact, we encourage you to use the letter as one step in the process of asking for a raise. This doesn’t mean you can’t have a conversation with your boss about getting a raise beforehand. You should put your salary increase request in writing because it establishes formal documentation of your request. Why Put a Salary Increase Request in Writing? Include the reason and justification for your request in your letter, as well as the specific salary you’re asking for.ĭon’t complain, refer to your coworkers’ salaries, or talk about your personal or the company’s financial situations in your pay increase letter. Send a salary raise letter when the company is doing well, when your last raise was at least a year ago, and when you’ve become a more valuable employee. To help ease some of the awkwardness of asking in person, we have some tips and examples of how to write a salary increase letter. It can be tricky to express why you should receive a salary increase, but putting the request in writing can help you avoid tripping over your words. Make sure you leave room for negotiation, say thank you, and send your letter at an appropriate time as well.Īsking for a raise is never easy, even when you deserve one. To write a salary increase letter, be specific about your reason for asking for a raise, what salary you’re asking for, and your justification for your request. Then make your decision and stick with it.Summary. To attempt a price increase you must be okay with losing potential customers or even missing out on the return business from a long-time customer.īefore you take action, ask yourself if you have too many customers, or a problem customer, or if you want fewer customers. He acknowledges that changing to a new vendor would be difficult. He also notes to the customer that he has past experience with their projects. He’s open to a phone call to discuss this as well. Notice that Daniel gives them a clear reason for the price increase. I know your business, I know what works, and you’ve seen proven results from my company that prove our value.Īs always, you and your business are important to me, so if you have an issue with this, please email or call me and let’s discuss it.”Daniel Will-Harris In plain English, means 10% more than what you’re paying now–but 40% less than new customers are paying. New customers pay 2x (or whatever) more than you do, but since you’re always so good to work with, I’m offering you a 40% discount. I also need to be able to keep my own business running, so I want to explain my new pricing. First, I wanted to thank you for being such a great customer. Maybe you have hundreds of customers and email is the only feasible way to communicate.ĭaniel, of, gives an example email template to use. Perhaps you have too many clients to meet with. Also, be sure to give them a reason for the price increase.” This conversation requires that you speak with them in real time, on the phone or in person, so you can be there for their reaction and respond accordingly. Ilise of Marketing Mentor and author of “The Creative Professional’s Guide to Money,” says, “Never tell a client by email you’re raising your rates. So why and when should you execute a price increase? Read on. Most businesses live on repeat business, so you don’t want to alienate those customers. Often times clients expect a discount because they’re bringing you “more business.” And they have a point, so the first thing you do have to ask yourself is, “Do I really need to raise my rates, and is it a good idea?” Increase your rates until you’re losing sales. If you’re not losing 25% of your sales leads because of your price, then you’re too cheap. This is easy try a price increase of 20% on the next call with a potential lead. There are two options for a price increase: ![]() When you want to work less, raise your rate by 20% and lose 10% of your business, freeing up time for marketing or other tasks to grow your business.When you have a client you want to get rid of. ![]() When you have too much work (previously mentioned).This is a good problem to have, let’s be sure to celebrate the stress of “too much work.” Price Increase: Three Examples.Ĭonsider a price increase under these circumstances: So if you have too many customers, congrats, business is probably good. If you have more customers than you can handle, do a price increase.” My dad, a long-time car wash owner, says, “Price is your throttle on the amount of customers you have. Attempting a price increase on your hourly rate is a tricky situation. ![]()
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