Need to raise client charges?
In preparation for the NMW rise coming into force this April, the Equestrian Employers Association (EEA) is currently conducting a survey on how the increase will affect our members and their businesses.
Early results are already showing us that a staggering 81% of those responding to the survey will have to increase their client charges in order to cope.
With livery charges already high, this begs the question “How do I explain another rise in cost to my clients?”
A cost increase is always a difficult conversation, but coupled with a possible reduction in services, as suggested by 20% of respondents, and concerns for horse welfare, it will become even more difficult to get clients on-board.
Until customers understand the TRUE cost of keeping horses, this will always be an uphill battle - Livery yard owner, name withheld
From the client's perspective, they may feel that they have little choice but to go with the price rise, as without the yard, they will have nowhere to keep their horse.
Clients are so important to your business and its viability, and therefore it's essential that conversations are had in a timely manner, and are as open and honest as possible.
Having the conversation
Here are our top tips for handling those difficult conversations:
- Explain to your clients that you need to make sure that your business is viable, with horse welfare at the absolute heart of any decisions that are made.
- Talk to your clients about the challenges that face your business over the coming year and how that impacts both you, and them. Be clear on the impact of not making any changes, too.
- Be transparent about what things cost. Show the increase to your annual salary bill and the price of materials such as feed and bedding. Talk about any other costs that you feel comfortable doing so, and what it means to run your own yard - Anything that supports your need to increase your client fees.
- Engage in a two-way conversation with your clients. Perhaps invite them to an evening event where they can come and have their say. Ask them what is important to them and what is less so. It may be that certain services or duties can be removed without having much impact on the satisfaction of clients. You could also ask them for any suggestions they might have.
- Be clear in your final communications to clients. Thank them for their input and explain why certain decisions have been made. Where you have considered their suggestions and put them in place - highlight this so that they feel listened to. Ensure you give a consistent message to all your clients and be available for them to come to you if needed.
Having these types of conversations with clients is hard, but hopefully, our tips will help them to be as productive as possible.
Come and join the EEA and get further business support.