Our small company will hit the VAT threshold this year and, although other similar companies say it will be fine once we have got that milestone over, I am a bit worried that the price increases necessary may seem off-putting to regular customers (long-term clients are my faves, would hate to lose these ones!).
It is a cleaning business and although I think we may be able to absorb around 2% of the cost ourselves, we are going to have to raise prices by the remaining 10% in order to continue to grow and thrive as a company with a future (I am going for the 12% flat rate at first!)
What will clients think about a ten percent raise in rates? I am already selling to new clients at the new rate and that is fine, I still get the vast majority of jobs i go to quote but what about existing regular clients? Will they mind a ten percent price increase?
I know I should in business but I'm not great at implementing even small price increases and try not to do it much even though it's never caused a problem when I have done in the past, I just hate it sooo much and it makes me feel a bit poo, which I know is not the point at all but my feelings get in the way! I don't like talking money after the original price is set up!
We will hit the VAT threshold early next year if our sales remain the same so I need to know if people will pay ten percent extra or will we lose a few clients? What is your opinion - is this really something to be concerned about or will it go smoothly do you think?
Thinking purely with business mind - we can afford to swap out a few clients if we must but emotional mind is saying 'I love my old clients and don't want to lose the relationships!'
What do you think will happen?
Please or to access all these features
Please
or
to access all these features
AIBU?
To worry about the effect of VAT charges on my business?
25 replies
BallsforEarings · 19/12/2014 21:44
OP posts:
Don’t want to miss threads like this?
Weekly
Sign up to our weekly round up and get all the best threads sent straight to your inbox!
Log in to update your newsletter preferences.
You've subscribed!
Please create an account
To comment on this thread you need to create a Mumsnet account.