Fixed fees, inflation, increase?

Newbie

Hi I have two new clients both fixed fees can anyone advise if they increase them the following yr, the fees are in the engage letter so does that mean a new engage next yr, tnks

Monsoon

A lot of practices increase for inflation every year. I've never been brave enough to do it, but I will this year.

I don't put fees in my LoE; I've structured my LoE so I don't have to keep renewing it unless the scope of the engagement changes dramatically. If yours specifies fees and doesn't specify £x plus and inflationary increase each year, then yes, you would need a new LoE.

groundy

We used to increase fees by 2-5% every 2-3 years depending on client. However, we haven't done that for last year or two due to recession.

Also agree with Monsoon we don't mention the fee amount in LOE just when we invoice.

deanshepherd

Monsoon wrote: »

A lot of practices increase for inflation every year. I've never been brave enough to do it, but I will this year.

Me too, fingers crossed!

Newbie

thanks very much, I had the feeling I was shooting myself in the foot trying to be transparent so to speak