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Re: Is there a correlation?

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Every time I think about rates I recall how my partners and I anguished over raising our *billing* rate from $18 to $20 in the early '70s, fearing that we'd lose all of our clients.  We didn't.  :) 


In a message dated 10/28/06 9:20:50 AM, ad026(--nospam--at) writes
> From: "Gary L. Hodgson and Assoc." <ghodgson(--nospam--at)>

> Bill,
> If you're busy as heck, just raise your rates.
> Gary

I've done that and found a couple things:
1) no reaction,
2) they're too busy to shop around,
3) everybody else is busy and raising rates (covertly in fixed fee
proposals, overtly in hourly rates and more O/T charges),
4) my number increases are so small in their overall budget that it is
5) it just gets passed to the owner as a project cost or buried in the
massive contingency fund.

Nobody has told me, yet, that they/I are going to lose a job because my
fee was too high. I'm preparing for another increase before the bottom
drops out. Take the money and run ....

It's that old elasticity price and demand curve at work.