Raise your prices without losing clients
When to raise, how much, how to announce it and what to say when someone pushes back, with scripts you can copy.
Almost every freelancer and small business owner charges too little for too long. Not because they are bad at business, but because raising prices is uncomfortable. A thoughtful price increase is one of the highest-return moves you can make: the same work, more profit.
Signs it is time
- You are booked solid, or turn work away.
- Your best clients never negotiate.
- You have not raised prices in 12 months.
- Your costs have risen.
- Your results and skills are clearly better than when you set the price.
- Your minimum hourly rate is higher than what you actually earn per hour.
If two or three are true, raise prices.
How much
For existing clients, a 10 to 20 percent increase is common and usually accepted. For new clients, you can jump further, since they have no reference price. Many people raise new-client prices by 25 to 50 percent and see no drop in demand. Test it. If nobody ever pushes back, you are still too cheap.
Three ways to raise
- Raise the price for new clients immediately. This is the easiest and least risky.
- Give existing clients notice, usually 30 to 60 days, and start with the next project or billing cycle.
- Replace hourly pricing with a package or retainer, so you are paid for the outcome, not the time. Read productize your service.
Scripts you can copy
Announcing to existing clients:
Hi [Name], thank you for the work we have done together. Starting [date], my rate for [service] will be [new price]. Your current project and anything booked before [date] stays at the current rate. I have loved working with you and I am happy to talk it through.
If someone pushes back:
I understand. The new rate reflects [more experience / better results / increased demand]. If budget is a concern, I could offer a smaller scope at the current price, or we could move to a quarterly plan. What would work best for you?
Offer a smaller scope, not a discount. Cutting your price teaches clients that your price is negotiable, while cutting the scope protects your rate.
Expect some churn, and that is fine
You may lose one in ten clients, and they are often the ones who paid least and demanded most. The freed time can go to higher-paying work. Track the numbers in your weekly money meeting so you can see the profit effect.
Back it with proof
Collect testimonials, results and referrals before you announce, as described in build a referral engine. The more evidence you can point to, the less you will need to justify the price.
- Raise prices when you are busy, improving and your costs have gone up.
- Give existing clients 30 to 60 days notice. Raise new-client prices right away.
- Respond to pushback with a smaller scope, not a discount.
- Pair price increases with packages and proof.
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