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Set up automatic annual price adjustments on a proposal

Build a yearly price increase into an ongoing proposal, so recurring service prices rise automatically on each contract anniversary.

Written by Pat Kuo

Build a yearly price increase into your ongoing proposals. Once your client accepts, Ignition raises the price of each eligible recurring service on every contract anniversary, so you never need to send a new proposal or update prices by hand.

Please note: This feature is currently only available to Ignition accounts in the United States.

Requirements

  • The proposal must have an ongoing contract term. The option isn't available on fixed-term proposals.

  • The proposal must include at least one recurring service with a Fixed or Unit price type. One-off services and other price types aren't increased.

  • You set the adjustment on each proposal. This currently isn't available in proposal templates.

How to add an annual price adjustment

1. Open a draft proposal and go to the services step.
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2. Click Annual price adjustment, then click Enable auto-increase. Ignition starts you with a flat rate of 5%.
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3. Choose how to apply the increase:

  • Flat rate: one percentage for every eligible service. Enter a rate greater than 0%.
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  • Per service: a different percentage for each service. Enter each rate in the Adjustment column. A service set to 0% isn't increased.

4. (Optional) Turn on Round up to nearest dollar to round each new price up to a whole dollar.


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5. Check when the first increase happens, then click Close. Your rate now shows next to Annual price adjustment, for example 5% p.a. or 3–6% p.a.

Add a clause to your terms

Add a clause to your proposal terms that explains the annual increase, so your client knows what to expect. Ignition doesn't add this wording for you, but the Terms step shows a reminder while an adjustment is turned on.
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Terms template example

Here's an example below of a clause that you can add to your terms.

Option 1: Flat rate

Annual price adjustment


​The fees for all recurring services in this agreement will increase by [X]% each year, applied on each anniversary of the agreement start date. Each increase is calculated on the fees in effect immediately before the anniversary, so increases compound year over year. Invoices issued on or after each anniversary will reflect the adjusted fees.
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Option 2: Per service

Annual price adjustment

The fees for the recurring services in this agreement will increase each year by the rate shown next to each service on the pricing page of this proposal, applied on each anniversary of the agreement start date. Each increase is calculated on the fees in effect immediately before the anniversary, so increases compound year over year. Invoices issued on or after each anniversary will reflect the adjusted fees.

Edit the adjustment on a draft proposal

While the proposal is still a draft, open Annual price adjustment to:

  • Change the rate, or switch between Flat rate and Per service. Your per-service rates are kept if you switch to a flat rate and back again.

  • Reset all rates to 0% (Per service only) to clear every service rate.

  • Remove the adjustment from the proposal.

Please note: If you change the contract term to fixed, Ignition removes the adjustment.


When the first increase happens

The anniversary is based on the proposal start date:

  • Billing starts on acceptance: the first increase is one year after your client accepts.

  • Billing starts on a set date: the first increase is one year after that date.

You can back-date a proposal by less than 12 months, and Ignition shows a warning with the date of the first increase. If the start date is 12 months ago or more, you can't set an annual price adjustment.


Your client's experience

Your client sees the adjustment on the pricing page of the proposal and in the proposal PDF:

  • Flat rate: "Recurring services are subject to a 5% annual price adjustment, applied on the anniversary of the agreement start date."
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  • Per service: the rate next to each service, for example +3% / yr, with a note that rates apply on the anniversary of the agreement start date.
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Your client sees the rate, not a dollar amount for the new price.


What happens after your client accepts

  • On each anniversary, Ignition raises each eligible service's price by its rate before that day's invoices are created.

  • Each increase builds on the previous year's price, so increases compound over time.

  • Invoices from the anniversary date onward use the new price.

  • Percentage discounts update to match the new price. Discounts you've edited by hand stay as they are.

  • Each increase is recorded in the service's activity log, for example "Annual price increase applied: $500.00 → $525.00".

  • Increases stop when the service ends.


FAQs

Can I change or remove the adjustment after my client accepts?

Not at the moment. Once the proposal is accepted, the annual price adjustment can't be changed or removed, so check your rates before you send.

I added a new service in Per service mode. Will it be increased?

Not automatically. New services start at 0%, so set a rate for each service you want to increase.

Why can't I see the Annual price adjustment option?

Check that your proposal has an ongoing contract term and at least one recurring service with a Fixed or Unit price type.

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