What would you do?

[KeepsakeGirl]

I received a call from a potential bride who saw my price list and setup an appt w/ me for January. She told me which collections she was interested in and also which ala carte items she may want.

I just received an email from my lab that states the cost of mounted prints is going up....and the cost is enough to warrant a jump in prices.

Question: I NEED to increase the cost of my packages to make up for this change or I'm going to lose some profit. Since she's already seen my prices would it be wrong of me show her the updated prices at our meeting or is this fair game since she didn't sign a contract just yet?

[zepp]

Originally Posted by KeepsakeGirl

I NEED to increase the cost of my packages to make up for this change or I'm going to lose some profit.

Some profit? Or all your profit. like loosing money on the job.

I'd say that if your just loosing SOME profit, I'd honor what you originally told her since it is just this one job.

Things should work out in the end when you make more on another job than you expected.

Edit:

I'd honor what you talked to her about even though she hasn't signed a contract otherwise it could look to her like a "bait and switch" deal. Your reputation is important to you. What if you go meet with her and you tell her of a price increase of what you originally told her and she doesn't go for it, then you make no money at all since you don't even get the job. Even worse is her getting disgruntle since you have now wasted her time in a meeting that she might feel you are trying to take advantage of her and she goes and spreads your name around in an unfavorable way.

Edit 2:

Food for thought....

When I submit a job proposal I factor in a "what if" factor. What if the client wants just a bit more than they originally thought they wanted. Sure there is a limit. I'm not going to do double the work agreed upon for the agreed upon price. But by adding in the factor up front I have covered myself for "small favors" the client might ask for in the field.

If the "if factor" doesn't come into play, I invoice the client the original amount and show a discount of the "factor" on the bill. That way next time I do a job for them and the "if factor" comes into play and I charge them the full invoice price they cant' come back and say last time you only charged this much.

I know this is a different situation than yours. It's just an example I thought I would throw out there.

Good luck...

[Gordon]

Put up your prices, explain to her what's going on, then give her a 50% discount on the price increase. You'll up your profits a bit, establish your new price range, and give her a bit of break for contacting you before the change.

She might be put out that your prices went up, but may still feel good that you are giving her a deal on the increase. Also easy to justify to anyone else who wants the same 'deal' that she got in before the changes.

[Roy]

As long as you making some profit, I'd go with the price list posted but get your price list up to date for the future. You can expain to her that your prices will be going up but if your still making profit at the prices she saw, I think you will benefit in future business dealings to honor what you have on your list.

If your loosing money then you can forget what I just said....

[CalebSimpson]

Honor what she saw on your site just before calling you. If the price increase of mounted prints is going up so high that it affects you that bad maybe you need a huge increase in your prices. I can’t see them going up so high it would warrant a price change that big. I only charge a base price for shooting the wedding, online proofing and a set of 4x6 prints. Everything else is extra.

[LadyShutterBug]

um, yeah, what calebsimpson said ;)

i sell prints and products separate from my packages, letting brides know i can write them into the package if she'd like. i explain that my prices may increase slightly if my lab costs go up, which can happen over the course of a year. they are generally not bothered by this.

[Steelsun]

I'd do what Gordon said.
If I looked at a price list for a company 2 years ago and then went to them tomorrow, I could not complain if the prices have gone up.

Maybe put your new price list up online and have a notice that says "Prices effective on all orders after January 1, 2007" or whatever.

You don't have a contractual agreement with her now, but the discount Gordon described will establish good faith.

It is also normal for service industries to change their prices at the begining of a new calendar or fiscal year.

[zepp]

It might be suitable to do what Gordon and Steelsun suggest to someone that contacts you in the future before you post your new prices. Mention to them when they first contact you that you are in the middle of a pricing increase and the current prices on your web site don't reflect that yet. But being that you have already talked to this ONE perspective client and you have talked to them on the old prices, I would honor my word.

Maybe I'm soft, but it's only one job.

I also agree that if your prices are so low that you can't absorb the lost profit on this one job, you need to build that in your new pricing structure. This way the extra profit margin built in covers your butt for instances just like this. That's why I originally made mention of the "what if" example in my previous post.

[LoungeLizard]

Honor what you gave her.

[Gordon]

It also depends on things like how much business you have, how much profit you are talking about, how far things went in terms of agreeing a price when you talked to her and a host of things that we can't really judge very easily from a 'net forum.

[LadyShutterBug]

i did a pricing increase in early december.

anyone who had contacted me in the last month or so will get the previous pricing.

if someone contacted me 3 or 4 months ago and i have not heard form them since, then they will probably not get the previous pricing... kind of depends, have i had other inquiries on this date?

the girl who contacted me a week before the pricing change will still get the previous pricing.

it's pretty much a judgement call on my part, but i don't feel right charging someone a higher price when they recently contacted me expecting a better price. the legal part of my website states that no price is guaranteed without a contract.

i also would not feel right charging hte higher pricing to someone i had previously met with in person... although my price listing that i give clients does have a "prices good through december 31" on it.

i kind of try and treat others as i would expect to be treated in good faith.

[*Mike*]

I'm a softee. I would honor your original prices... in fact, I've been in the same boat. We made substantial increases in our price list and I had an ethical problem with then handing that price list to the brides that were expecting less.

Holly (HotHolly) on the other hand can be ruthless She has no problem with this kind of thing. You pay prices as they are - not what they were when you were thinking about it. She really doesn't buy into the "the consumer is always right" mentality (as justified by her nightmare wedding thread).

We actually specify in our contract now what print pricelist is to be used... The one presented at the proofing session, and it will be valid for a minimum of 60 days.

[HotHolly]

And "ruthless" Holly will chime in too...(Although I dont know about that...more like "seriously burned Holly- has no faith in people- not trying to nickle and dime me into poverty" Holly)...I guess that has the same result...Ruthless Holly.

We state that our wedding package prices are valid for 10 days from the time we write something up for them. So if we meet, and they dont sign, they cant come back 3 months later and expect the same price...it might be the same, but it may not. Covers our backside for any price increases or supply/ demand issues.

[iCe]

I would honor my word.

Ditto...

[HotHolly]

Originally Posted by Gordon

then give her a 50% discount on the price increase.

I like this idea the best...Its totally the way of the weasel...Works in your favor and your customer should be happy too.