Miriam:
I know exactly what you mean. If at all possible, I recommend that you resist the pressure from your clients to lower your rates. You won't be doing yourself or your employees any favors by caving to such pressure.
Any time a customer asks us for a price break, we politely explain that we are in business to make money just like them, and that we (like most of us) are operating on a razor-thin margin. It also doesn't hurt to cite the fact that although fuel costs have skyrocketed, we have "held the line" on our prices to our valued clients.
I don't think I've had any clients "jump ship", but even if they do, I think in the long run, it's not in our interest to "cut our own throats" just to keep a customer.
But, that's just me.
Regards,
Scott Perry
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