I run a service company and currently have about 4 reliable customers and various other smaller clientele. Last year i decided to increase my rate to one of my customers for a couple reasons, mostly due to inflationary pressure but also to harmonize with what my other customers were already paying. So last December I sent a notice of change and soon after my main contact person at that company broached the subject of my service and what it was costing. We had a good conversation and I was sure that that discussion was a result of my letter of notice. So I went forward with the change and that customer continued to call for service and our relationship inproved. They ended up being my largest revenue generator for last year. Just recently I had a message from my main contact acting completely blindsided about my rate change from last year. He now he never knew about the change and claims we’re not worth that much and he is immediately looking to replace us.

My reaction was to take ownership of the mistake I made by assuming he was aware of the rate change because of the conversation we had. I was not explicit about it to him as I thought the emailed notice was made known to him ( I failed to actually email him directly)

At this point he has indicated that he is looking for a new service company and I have not responded officially except to say

Ok, that’s too bad

So what do I do? I believe my charge rate at this point is on the high end, but fair. I have several other clients who have been paying thos rate for a longer period. I continue to recieve nee requests for work from nee clients which I unfortunately mostly reject because we are at capacity.

Do I let this client search around and hopefully return back? Or do I set a meeting and try to justify ourselves to him? Do I move on with hopefully a new large customer in the future.

Anyone else go through something similar? What did you do?

Thanks