Haw many of you in the business have increased your rates based on inflation plus the big increase in fuel prices? Beginning with Q4 my hourly rates are increasing by 6%. I have tried to keep overhead as low as possible but costs are up and there is need for some CapX.
Like to know what the rest of the IT community is doing.
Thanks
We are always evaluating prices but generally push the changes at beginning of each year.
LTS_Tom Thanks for the response. I was thinking along the same lines but then semi-annul or quarterly smaller increments would be more palatable depending on the plan. Hopefully the inflation rate will slow. Had a client tell me that they were surprised I haven’t raised my rates for three years (they pay an annual retainer lump sum plus a discounted hourly rate by the man hour). They were expecting a 5% annual increase. My response was I try to take care of my long term clients plus my costs have not risen except for this year.
After thought: Liked the post about the wire job gone sideways. Lessons learned. Got similar T-shirt, in fact that may make a good T. Good luck and continued good fortune.
Whilst I am sure costs are up I’d be wary of using inflation as the justification since official inflation rates are so low.
Very aware the “official” inflation rate is artificially low but have factored in my real world inflation rate.