be sure to look up the laws regarding auto renew in your state. In WI its required by law that if we have an auto renew we are required to provide them with notification, which includes the length of contract, the amount, payment terms, etc.
Our states this.........
The initial term of this agreement will commence on April 1, 2011 and end on March 31, 2012, but the agreement will automatically renew for the following 12 months unless written notice of non-renewal is received by either party at least 30 days before the end of the current annual term.
Like grassman said, if we adjust pricing for them, we cancel the old agreement and then supply them with a new agreement with the new pricing