Comments on my contract with a client WWYD?

[SleepyHollows]

Got myself into a silly pickle here in some ways. A long term client paid me for some services and I offered them a substantial discount. This was partly for their loyalty and they offered to pay upfront (but that's my norm anyway.) They used some of my services but then disappeared for a long time (over a year) but have now come back wanting to pick up from before. The thing is, my T&Cs have changed and my prices are much higher- more than double what they paid me. I suppose I ought to honour the agreement, but should they expect the same service for the cost it was a long time ago? I could refund them and say from now on it's on the new prices only, starting again, or reduce the amount of service I can provide based on what they paid. Any ideas?

Do you need the work?
I would think about whether I was prepared to do the work for the lower price or whether I was prepared to lose it. If you are willing to risk losing it then explain the changes and ask if they still want you to do it.
As you said they paid upfront and then vanished didn’t they use the full service they paid for? If so I might offer a discount in respect to that.
It all depends on your attitude to your work, I won’t work for less than my rate ( which does have a range depending on how much I want the work) but I am prepared and able to turn down work as well

Have they already paid for the work, and did your contract have a clause as to when the work would be carried out?

They haven't used all they paid for.

But that was 9 months ago. Since then I have re-branded and my fees have increased.

I have changed my T&Cs (for new clients) saying they must use all they have paid for within a time limit (which I state). This is partly because what I'm providing works best with continuity but also because fees will eventually rise through inflation if nothing else.

I don't need the work, no, but I suppose I am reluctant to offer a refund . The 'rule' in this profession is if you pay in advance, but do not use the entirety of the service, you simply lose your money because that's your choice (not to continue.)

This is slightly different in so much as the fee they paid bears no relation now to my re-vamped business.

One option is to say what they paid for many months back would now only cover X amount of my time and do they want to take that up?

To explain further...

(these are not the real figures, by the way)

For example, they paid for 2 hours of consultation time @ £30 an hour. So that's 2 hrs they have to use up. They paid 9 months ago at what was a reduced rate anyway for loyalty / long term customer.

Now, the fee is £60 an hour. So should they still expect to get the same amount of time?

How much time did they use and have you had no contact at all in 9 months? Did you attempt to contact them when they went off grid?

How much time do they have left? It's quite a substantial increase in 9 months and in my business I would honour the original rate for the existing package of work and then increase it for any subsequent work.

@SunnyDaysShadyCorners It's not actually a substantial increase because I charged the same rate (to them) several years ago and never increased the cost even though I was increasing it for new clients.
I also posted above that these are not the actual figures.

So it would be an increase after several years, not 9 months. They are very long term customers.

I don't want to be more specific because obviously they may read!

No I didn't make contact because the way it works is they would contact me.

The problem as far as I can see is that you have been paid for a service but not provided it (through no fault of your own). What does your contract say? If it’s is still valid then I would say you need to complete the work they have paid for and then implement the increase.

I am in a similar position- I have clients on a "historical rate" i.e. they were clients when I was starting out. Their rate is substantially less than I quote for new clients.

Some of my historical clients have been very good to me- referred lots of work to me, have been referenced by other new clients who knew I worked for "X" therefore, in their minds, I must be good.
Those (early clients) I have kept on their original rate.

But, an historical client who has appeared after a break- I would charge at present rates.

I think, in your position, I would honour the original contract, stating that their pre-paid hours will be honoured until 30 June 2019 (for instance) but that current rates will apply to new work or work carried out after that date.
I'm assuming that the remaining work has a limit i.e. a set number of hours or a set volume of product?

How many hours do you owe them?...
I think I might say to them that they have two options...
A refund or since your rates have increased you are willing to split the difference this time and go it at 75% of cost but this Will be for this job only and once it is done your rates will be normal costs..

This way they can choose.

What does your contract with them say? Is there a time limit in which they have to use your services or lose them? If not, I would say you should honour the hours they have paid you for at the rate they have paid you for them.

I had a personal experience of this once, being on the other side. I had prepaid for some beauty services. The voucher I had had no expiration date. I forgot all about it, then wanted to use it about 18 months later. The salon kept going on about how they had upped their fees. I told them that I didn't care. They should have either provided a clearer agreement, or, as far as I was concerned, they still owed me the service. They gave in in the end.

I would chalk this one up to experience and formulate clearer contracts in future.