[Alexandra38]

Hi everyone.
I decide to increase my office cleaning price from £11.50 to £12.50
One of my  customer just send me this answer:

"I understand this to be an 8% rise from our current costs which is surprising in the first year of working with us.
We can accept yearly increase in line with inflation but this is much higher.  Can you rethink please and let us know."

What do you think about this?
I do not know what to answer for them and how much I should charge.
I pay for the cleaner £7ph so wanted to give her £7.50 after the customer will pay me morre but now I dont know what to do.

What do you think about it?
Is one pounds to much?
If so then how much should be?
I pay £7 ph for the cleaner who clean for this office and was planing to give her £7.50 form April but I dont know what to do now.
I appreciate your suggestions.

many thx
Alex

[Stoots]

do you want to keep the contract at £11.50 or not?

theres your answer

[Mike Halliday]

Is inflation the only cost rise you have had in the past year? They are basing thier argument on inflation only.

If you can You need to give them the extra benefits they will  have  from by paying the extra 8%

[Tony Stewart]

Agree with Mike.............there is the social responsibility for the living wage: there has been a massive increase on insurance premiums too. Also you can argue that you may not have put your prices up for the last three years say and its unlucky that this new contract has only been going for a year but you need to increase your prices to maintain a professional workforce etc. I would try to do this face to face as you will get more of a feel for the discussion. Its your decision and  don't necessarily jump to the conclusion that you will lose the contract. Is it then only based on price? Not necessarily at all.

[Glynn]

Don't offer them a reduction or a breakdown just inform them that due to wage forced increases and supply costs going up etc etc that you are now in fact making less profit than before and thats including the slight increase you are asking for.
And that no increase can detrimental to the service being carried out in terms of using quality staff.

[Millsey]

Costs are increasing all the time, prices need to go up and you can't put prices up like 17p ph that's just silly