Charging for services in Thailand - increasing the prices?

[OneMoreFarang]

This should be in a business forum, but it seems there is no business forum here anymore. If there is, then admins, please move this.

 

I work since decades in Thailand, officially and with work permit and all that. And I charge for my computer service mostly per hour.

Over the years, I increased my prices mostly for new clients and mostly I kept the same rates for existing clients.

But obviously it makes sense to also increase the prices for existing clients over time.

In my experience farang clients understand this. But it seems some (or all?) Thai clients don't like that. Like, I am your customer already for 10 years, why do you want to increase your rates now?

Maybe I should ask them if they still get the same salary as 10 years ago and if they still sell their products and services with no price increases.

Do you have any tips how to explain reasonable price increases to existing Thai customers?

[KhunLA]

Easy enough, and just tell them, you are trying to keep up with inflation, just like them.  As you say, there daily wages have gone up, as yours should also.  

 

Minimum wage has triple since I've been here, 2000. ~100 a day +/-, and now 360 +/- a day.

 

[OneMoreFarang]

17 minutes ago, KhunLA said:

Easy enough, and just tell them, you are trying to keep up with inflation, just like them. 

Thanks

I think what I really want to know is a nice way to tell them. I do business with businesses and in principle they should not be surprised when everything gets more expensive over time. But sometimes they behave like children, who just like to complain that the world is so bad, and now they have to pay more.

I remember with a hotel, I knew their prices from the lunch buffet over the years, and I could easily show them that they increased their prices by more than I did. But with other businesses I don't know what they charge and it's not so easy to compare.

[NoDisplayName]

Easy.

 

"Everything I pay for has gone up, too - gas, water, rent, electric, food.  Remember paying 25 baht/liter for gasoline in 2016?  I do, and I haven't raised my rates since then!"

[impulse]

2 hours ago, OneMoreFarang said:

But it seems some (or all?) Thai clients don't like that. Like, I am your customer already for 10 years, why do you want to increase your rates now?

Maybe I should ask them if they still get the same salary as 10 years ago and if they still sell their products and services with no price increases.

 

Asians learn to negotiate as soon as they can talk.  All we learn is that the price should be clearly marked, and everyone should pay the same clearly marked price.  We in the nanny states never learn "The Art of the Deal".  Well, most of us don't, myself included.

 

I don't see a need to go adversarial.  Just tell them your costs have gone up and you've had to raise your price to cover them.  Expect some pushback, sure.  But it's just part of the negotiation.  In fact, you may want to throw out a much higher price so you have room to move "because they're such a valued customer".

 

[jippytum]

17 hours ago, KhunLA said:

Easy enough, and just tell them, you are trying to keep up with inflation, just like them.  As you say, there daily wages have gone up, as yours should also.  

 

Minimum wage has triple since I've been here, 2000. ~100 a day +/-, and now 360 +/- a day.

 

 

[jippytum]

Just now, jippytum said:

 

while i agree prices have to increase for all customers. 

However the minimum wage is  unfortunatly  not received by many Thai workers. 

[KhunLA]

1 hour ago, jippytum said:

while i agree prices have to increase for all customers. 

However the minimum wage is  unfortunatly  not received by many Thai workers. 

Guess that is location dependent, as we can't find anyone for < 400 a day, maybe even 500, as haven't asked the wife how much she pays lately.

 

They keep coming back, so must be enough, and not sure I'd want to pay anyone less than 400 or 500 anyway.  Barely enough to live on as it is, if not 3 generations in one house.