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Post by johnc on Nov 23, 2022 12:50:35 GMT
I have just had a near 15% increase in our telephone costs because the contract provides for RPI + 3.9% and having looked at our photocopier contract it provides for a similar increase. Mobile phones and broadband next!
Until now, the increases based on this formula have been modest and acceptable but 15% is taking the p*ss and these kinds of increase just perpetuate the price increase spiral which fuels greater calls for large wage rises.
We have been keeping most of our price rises down at the 5% level but with wage demands of 10% and a near across the board increase in overheads of 15% (and 20% for some of our software), our fees are going to have to increase by more in the near future. Even when we are trying to be sensible the greed of others forces you into a corner. If these telecoms and software suppliers are getting 15%+ increases in turnover, their profits will increase significantly even if they give a 15% increase in wages. Did no one learn from the 1970's?
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Post by Martin on Nov 23, 2022 12:59:42 GMT
I have annual RPI/CPI price increases in my (closed book) customer contracts, but I've asked my team to take a more pragmatic approach. i.e. Break down the real impact of wages/rent/utilities/service etc, share that detail with the customer and agree the increase. But it's crucial that within the deal we ensure we are covered for any future increases that may occur before the next contractual review date. That means they're paying the right rate now, but we are protected in case they aren't as fair as I am in the coming months when something changes.....
If you don't do that, you not only piss off the customer (see post above!) and they're much more likely to look elsewhere towards the end of the contract.
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Post by Big Blue on Nov 23, 2022 15:33:39 GMT
This is nothing compared to the manifest pile of shite that is “standing charges” for utility supply. I have no objection to my metered electricity and gas going up in line with the effects of the market price of the commodity but the standing charges have gone up 86.45% between March and October of this year. This is the cost of maintaining the infrastructure and covering the cost of running the business. I’m not convinced those costs have gone up that amount……
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Deleted
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Post by Deleted on Nov 23, 2022 17:46:28 GMT
Got to have bubbly at the shareholders........
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Post by PG on Nov 23, 2022 20:43:30 GMT
This is nothing compared to the manifest pile of shite that is “standing charges” for utility supply. I have no objection to my metered electricity and gas going up in line with the effects of the market price of the commodity but the standing charges have gone up 86.45% between March and October of this year. This is the cost of maintaining the infrastructure and covering the cost of running the business. I’m not convinced those costs have gone up that amount…… Our electricity standing charges have gone up hugely to. I read somewhere that standing charges was where the costs of the failed companies is picked up. So the recent market turmoil means we all pay more. Don't know if that justifies 86.45% or not - call me a cynic but somehow I doubt it! |
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Post by Alex on Nov 24, 2022 22:16:45 GMT
I think they've estimated that the standing charge will go down in April but its still a lot higher than previously. As a low energy user (we have solar panels and a newish efficient combi boiler) this is frustrating as it puts a cap on how low we can go and I do think it's unfair on those on lower incomes or in smaller homes who typically use less but still pay the same standing charge as a millionaire in a mansion making it a rather regressive way of raising money to pay for our energy.
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