Adjusting Rates for Inflation

For those that are self employed, have you adjusted your rates, or are you planning to adjust your rates, for inflation beyond an annual COLA?

Yes, I’m upping my rates a little to make up for the recent bump in inflation. I don’t have a fixed hourly rate that I share with clients, which makes adding six or seven percent less noticeable to my regular clients. Even so, inflation really upsets things.

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Try being hourly with no hope of a raise in these “trying times”…
Or on Social Security. Some of my older friends say they are feeling a bit of a pinch with food prices.

Price needs to go up regardless. Petrol prices are up. Shortage of tank drivers. Higher prices. Delays.

It all adds up.

Cost had to be passed on.

Yes, I get that. None of us should be billing at the same rate we were billing at 10 years ago. I will assess annually and apply a COLA. My question was more with regards to the inflation we’re seeing in the U.S. that is above and beyond the norm. Granted, the end of the year is just less than a quarter away at this point, but I’m thinking I may adjust rates now.

Social Security is adjusted to keep up with inflation. I read the other day, where the benefits will increase by 5.9 percent starting Jan. 1.

Let’s just say, they aren’t in the upper reaches of living high on SS to begin with

Whenever something reduces my net income (e.g. inflation, increase in taxes, increase in transaction fees on invoicing software, etc) I would automatically reflect it on my rate. I tell this to my clients explicitly as well–especially to those I’ve been working with for a long time. I don’t know if I’m lucky or not, but I’ve received no complaints thus far.

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