TL;DR
Most clients expect prices to rise over time. Give clear notice, explain the value and the reasons briefly, and offer options. Raise new client prices first, then move existing clients in a planned way.
Know when to raise
- You are fully booked or have a waiting list.
- Your costs or skills have grown since you set the price.
- You have not changed rates for a year or more.
- You rarely hear price objections on new proposals.
Decide the new price
Review your cost per billable hour and your profit on current projects. A modest, regular increase is easier for clients than a large jump after years of silence.
Give proper notice
Thirty to sixty days is common for retainers and ongoing work. Put the date in writing and check your agreement for any notice terms.
Explain the value, briefly
- Thank the client and mention recent results.
- State the new rate and the date it starts.
- Give one or two honest reasons, such as growing costs and expanded service.
- Offer options, such as keeping the current scope or adjusting it.
- Invite questions.
Handle pushback
Stay calm and listen. If a long-standing client truly cannot absorb the full increase, you can phase it in or reduce scope instead of discounting the rate. Decide your limit beforehand.
Use data to support the conversation
Time logs and project reports show the effort behind the work. When a client sees what you deliver each month, the price feels more grounded.
With AgenciesWP you can review logged hours, subscriptions and project profitability before you set new prices. Browse the features or see pricing.
FAQ
Should I raise rates for everyone at once?
Not necessarily. Many agencies stage increases by client or renewal date to keep conversations manageable.
What if a client leaves?
It can happen. Replacing the lowest-paying client with better-paying work is often healthy for the business.
Putting it into practice
Pick one idea from this article and apply it to your next client or project this week. Small, consistent improvements to how you sell, price, contract and communicate compound quickly, and writing your process down makes each one easier to repeat.
More tips for agency owners and freelancers
- How to Price Agency Services: Hourly, Project or Retainer?
- Client Onboarding Checklist for Agencies and Freelancers
- How to Get Clients to Pay on Time: Practical Tips for Freelancers and Agencies
- How to Stop Scope Creep: A Guide for Agencies and Freelancers
- From Freelancer to Agency: When and How to Scale Your Business
- Agency Profit Margins: What Is Healthy and How to Improve Yours
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