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Originally Posted by $tandaman
Very well put.
Speaking from personal experience. Just can't charge same rates we did 2-3 years ago.. it doesn't make sense. And everyone wants their salary to keep increasing the longer they work for you.. so the prices are rising.
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Well, you can never justify the price increase to clients by telling them your costs are increasing. Especially with such fierce competition these days. However, you can justify it by arguing an increase in demand and/or quality.