How to inform clients of rates being raised

[2LaZ2race]

I guess the true title should be… how to BEST inform clients of rates being raised while keeping most of them ? :lol:

I have a decent sized lesson and boarding farm. My lessons have always been $15-35 cheaper than most surrounding stables. There were many factors for my low pricing ($20 for 45 mins) ; I was just starting out, I didn’t think my facility was as fancy, and I wanted lessons to be accessible for people who couldn’t afford the higher prices.

Since giving lessons for a year I’ve put in a nice sand riding ring, new jumps, x country course and new stalls. I’m also bringing in another trainer to give more lessons.

My plan is to raise lessons by $10 to $30 which is still below any licensed barn around me. (In my state riding stables must have a state license and carry insurance ).

I have a facebook group for my farm which I post a lot of information but I wasn’t sure if it would be tacky to post there. Do I need to give an explanation or just raise the rates ? How should I word it?

[JustTheTicket]

You for sure need to let them know. I would think that its perfectly fine to post it on the facebook site, as well as post it on the barn’s bulletin board (if you have one), and then also email or snail mail your regulars so they don’t come to their lesson expecting to pay $15 and its $45 now.

You can explain it by just basically saying what you said here. You made lots of improvements and have a new trainer and the new rates reflect that.

[atlatl]

Dear clients, thank you so much for your support and patronage. In keeping with rising expenses, I will be raising rates to $$$ so as to continue to be able to offer lessons effective **put date here **

I wouldn’t get into it any more than that. You may lose some, but others will understand. Some may check out the “competition” and realize what a screaming deal you’re already offering.

I wouldn’t post it on Facebook, I’d put up flyers and email all the clients.

Good Luck!

[HungarianHippo]

^^ This. Write it word-for-word Don’t over-explain, apologize, etc One of the most common mistakes small business owners make is to underprice themselves, thinking they’ll lose customers. But what you may find is that you GAIN clients, folks who might have otherwise assumed you were a cut-rate operation based on the cut-rate prices.
Congrats on your growing business!

[SCM1959]

Also, you have made this decision. Own it. Do not explain it beyond the very simple sentences recommended by @atlatl above.

I agree with @HungarianHippo that small business owners underprice themselves. I will further say that women tend to apologize for things way too often.

You know your prices are lower than anywhere else. Your clients know this, too. Even with your increase, you are still priced lower. They will know this. No apologetic explanation needed!

SCM1959

[hoopoe]

I would write a letter, nicely put as above by atlatl, but enclose it in your bill or other written communication other than email facebook or text blast.

posting it on Facebook would be unprofessional, in my opinion

Consider it a written notice of change in keeping with your boarding policy. Give a 2 month notice so those that may wish to look elsewhere can still fulfill the one month notice exit clause, if you have one.

If you have absent owners who do not physically visit the barn, send registered letter to the address.

You can also write up and post a rate sheet and display in common area, though do not rely on that being the only communication

remember you are running a business, not a club or friends group.

[2LaZ2race]

@JustTheTicket

You for sure need to let them know. I would think that its perfectly fine to post it on the facebook site, as well as post it on the barn’s bulletin board (if you have one), and then also email or snail mail your regulars so they don’t come to their lesson expecting to pay $15 and its $45 now.

You can explain it by just basically saying what you said here. You made lots of improvements and have a new trainer and the new rates reflect that.

lessons were $20 and I was going to raise it to $30

[2LaZ2race]

How much time in advance should I give ?

[hunt_jumpfl]

If your rates are posted on your Facebook page I would update the rates there after you notify your current clients. I’ve been through this recently as a client with a significant adjustment in boarding and training rates. I find it most helpful to be notified of the new rates in writing (gives me something to refer back to when writing checks until I get used to a new rate). I agree that you do not need to explain the increase, it will become obvious if people look elsewhere. If rates are increasing by a significant percentage be prepared for clients that haven’t budgeted market rate that may have to cut back.

[HungarianHippo]

I think 30 days is plenty of notice.

[mswillie]

If some people pay for blocks of lessons, e.g. six lessons for $120.00 and you are raising it to $180.00, I wouldn’t make the rate increase effective until they pay for the next block, even if it goes past when you do the increase. I fully understand rate increases with reasonable notice but I think I’d be a little put out if the price increased on something I’ve already paid for.

So something like as of September 15, rates for these lessons will increase to X+$$. For students who have already purchased blocks of lessons the rates will increase to $$$ at the end of the current lesson period. New lesson packages purchased prior to 9/15 but extending past that date will be charged on a prorated basis.

[OneTwoMany]

I would simply post a note on the barn bulletin board that there will be rate adjustment on XX date. In this case, October 1st makes the most sense. Print out a bunch of updated rate sheets and leave them in an area where they are accessible to all. For any clients that don’t regularly frequent the barn (absent boarders), pop a note in the mail and let them know that rates will be going up on XX date and include a new rate sheet.

[JenEM]

Totally agree with atlatl’s suggestion above. I’ve been at two barns now when rates have (reasonably) increased, and it’s been a notice sent to all boarders via email. Generally with 60 days notice of a board increase (gives people time to find a new barn and put in notice if necessary), I think 30 days is fine for a lesson price increase, unless you’re upping both at the same time, then just give 60 days for both to make it easier on you for bookkeeping.

[gottagrey]

Presumably you require 30 days notice, so you should also give 30 days notice. And its not that you should but you need to do it in writing that way there is no misunderstanding. A $10 hike in lessons is pretty steep, I’m not saying that the lesson price is unreasonable but people can get a little freaked over large jumps in price fees so bear that in mind when you increase your prices. It sounds as though even with the bump up in fees, you’re still below other places.

[BeeHoney]

I would email your clients directly. I would not post anything on a barn bulletin board. I also would discuss with people in person. Being able to speak about your pricing in a forthright manner is an important part of being a professional. If someone leaves you over a $10 increase in lesson costs, it probably was a client that you didn’t want anyway. A successful business depends on having clients that are willing to pay you fairly for your time and your services.

[freshman]

I think it would be most courteous to email or otherwise personally all your existing clients about the price increase in advance of a general Facebook or other public announcement. Those sorts of “sudden” general posts or signs etc just often feel really impersonal to insiders and it easy for people to get just a little offended or take the wrong way and have a negative feeling about it for no really good reason. Even just a personal notice with a 2-3 day advance of public notice often just feels better for clients. Mostly just gives them a chance to formulate their thoughts/opinions/budgets/plans privately and consult privately with you before it becomes a big barn social debate that can sometimes can result in even very open-minded clients getting negatively influenced by others into discontent, etc. Seriously, this happens a lot. A personal notice invites a personal response that is likely to be more thoughtful, honest, and well-considered response than a public service announcement with the same news.

I’d act now to contact existing clients and quickly follow with a public policy/pricing announcement and so I could make it effective October 1, 2018. It sounds far away and will go over better with clients, but realistically is only 5-weeks away.

[hoopoe]

I would give 2 month notice. Like I said this allows clients to prepare , adjust their budget or if need be, find another place , leaving them plenty of time to give proper notice

[SnicklefritzG]

OP, in your notice to clients, I would recommend focusing on what you have done to improve the property and services. If you simply say that prices are increasing to keep up with expenses, people may wonder what that means exactly.

[oldernewbie]

For the love of God, don’t do what one of my former BOs did when raising rates: post info on bulletin board after barn was closed for the evening and then leave town on vacation early the next morning. Remain incommunicado for duration of vacation. No way for anyone to get questions answered on a fairly significant rate change and big operational changes. Mass chaos ensues.

Return to find yourself with 2 boarders less and remaining boarders really really p!$$ed!

Communicating with your clients like an adult really does matter. This means a professional but pleasant email to each client, and being available to answer questions in an equally pleasant and professional manner.

Facebok only is cheesy.

Good luck!

[Callista17]

I say 2 months, and not on Facebook until everyone’s notified.