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How to tell your clients you’ve raised service rates

GatherKit How to tell your clients you've raised service rates

You know it’s time, and you’ve finally made the decision. You’re going to raise your service rates. That’s easy with new clients who don’t know you. But with ongoing clients, it may sound like a small change, but it can make a big difference.

You may be feeling apprehensive about approaching your clients and telling them the news. The truth is that the right clients will understand it’s business. But how can you go about telling them of the updates?

Focus on the positive.

The most important thing to remember about communicating a price increase to your clients is showing value. How will these price changes help them? Will you have more resources to focus on better service? Have you expanded your offerings? Have you increased your skills in some way that makes life better for your clients?

Allen Greer, the Digital Strategy Director at Fuze, a Miami-based digital agency, said: “I’ve found there is one fail proof explanation that I’ve never had a client argue with. It goes like this, ‘Our goal as a company is working to continually improve the quality of our services, which means hiring the most talented people we can find to produce the best possible work.’ Our clients reap the benefits of improved quality, so it’s a mutually beneficial business decision.”

Don’t over-explain or apologize.

Increasing service rates is normal business activity. As you get more experienced, you are able to offer more value, better communication, and better services to your clients. With more experience comes higher prices. Own your decision and stand by it if you get pushback.

Be clear.

Let your client know when the prices will change, what will change exactly, and give them the opportunity to ask questions. It’s ideal to give them a lot of notice so that they can take the time to process the new information and make a decision. Your clients will feel valued when you give them time to make any necessary adjustments on their side.

Raising your service rates is a difficult but necessary conversation to have with clients. If you are able to keep the conversation positive and focused on how this can help their company, you’ll be able to keep those loyal clients.


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