Price Increase

[casfan]

Just looking for a bit of advice.

As part of my business I have a few support contracts that last for a year.
I know that we are very competitive on price compared to our local competitors. There is a lot of leeway between us and the others.

What is the normal price increase for suppost contracts year on year on average?

Thanks

 

[Alan]

What is written in the agreements / T&Cs?

If nothing and the agreement spans more than one year, then no price rise would be expected.

If the contract spans more than one year and a price rise mechanism is covered by a clause it is normally limited to (+/- %) a recognised index relevant to the industry sector.

If the contract ends after one year and the customer signs up to a new contract each year, then the price increase can be what ever you like (unless it looses you the customer).

 

[casfan]

cheers roibot,

Its a new contract every year, so you right I can put my prices up to what I like.
But what is a reasonable % increase

 

[Alan]

Depends on in the industry sector, some are getting cheaper some are getting more expensive, there are indexes if you google for them.

If you can't find them then RPI is hard to argue against. 2.7% in Jan.
http://www.ons.gov.uk/ons/rel/cpi/c...---consumer-price-indices---january-2013.html