Most rate increases fail for a boring reason: the number came from how brave you felt that week. If you want to raise prices and keep the clients worth keeping, the number has to fall out of your margin math, and the rollout has to follow a sequence \u2014 who hears it, when, in what words, and what happens to the people who say no.<\/p>\n
Here is that sequence, in the order you should run it.<\/p>\n
The question is not what you deserve. It is what each client actually pays you per hour of real delivery time, including the calls, the revisions, and the messages nobody puts on an invoice.<\/p>\n
Pull your last 90 days and build one line per client: revenue collected, hours touched, direct costs (subcontractors, stock assets, software you only run for them). Then divide.<\/p>\n
You bill a client $2,000 a month. Last quarter the account averaged 26 hours a month: 18 on the work, 4 on calls, 4 on revisions that were never scoped. Direct costs run $150. Your realized rate is about $71 an hour. If your target is $110, that same scope needs to sit near $3,000 \u2014 or the scope has to shrink by roughly a third.<\/p>\n
Now round the result into something you can say out loud. Increases under about ten percent usually cost more in conversation and admin than they return. Ten to twenty-five percent is the normal band for a correction. Past thirty percent it stops being an increase and becomes repositioning: new scope, new deliverables, new proposal. If you also sell products rather than hours, the same margin-first logic applies from the other direction, and our guide to pricing a digital product<\/a> walks through that version.<\/p>\n Sort every active client into four boxes before you write anything:<\/p>\n Then roll it out in that order of risk, lowest first:<\/p>\n Your strongest accounts come late in the calendar but first in effort. Never let a top client discover the change on an invoice.<\/p>\n Read the contract before you write the email. Many retainers already specify a notice window, and ignoring it turns a price conversation into a contract dispute. Reasonable defaults when nothing is written down:<\/p>\n Pick one effective date for everybody and put it on the first of a month. Personalized dates create a tracking spreadsheet you will eventually get wrong, and they make the increase look negotiable.<\/p>\n One timing check: avoid landing the notice during a client’s quarter close or their biggest launch week. Same message, worse week, much worse reaction.<\/p>\n Five parts, and nothing else:<\/p>\n Hi Dana \u2014 starting March 1, the monthly retainer moves from $2,000 to $2,600. The rate has not changed in two years while the scope has grown, so I am bringing it in line. Everything in your current scope stays the same: the two campaign builds, the monthly reporting call, and 48-hour turnaround on requests. Your February invoice is unchanged. Nothing is needed from you \u2014 the new amount applies from the March invoice. Happy to walk through it on a call if that is useful.<\/p>\n<\/blockquote>\n Notice what is missing: an apology, an inflation essay, three paragraphs of justification. Length signals doubt. Keep it under 150 words and send it from your own address, not a billing system.<\/p>\n Someone will ask to stay on the old rate. Decide the answer once, in writing, before the first email goes out, so you are not inventing policy under pressure.<\/p>\n Keep one document listing who is on which rate and when each exception expires. Put the expiry dates in your calendar the day you grant them.<\/p>\n You will hear three things. Have the responses ready.<\/p>\n The rule that saves you money: never renegotiate on the call. Say you will look at the numbers and reply within 24 hours. Concessions made live are almost always bigger than the ones you would make at your desk.<\/p>\n When you do concede, trade rather than discount. Ask for annual prepay, a longer term, a named case study, a written referral, or fewer rounds of revision. Every one of those is worth real money and none of them resets your rate card.<\/p>\n Before you send anything, write down what outcome would make you change course, and what you will do instead of panicking. Losing some accounts is the mechanism working, not the plan failing \u2014 if you raise your rates twenty percent and lose the least profitable eighth of your book, you end up with more margin and more free hours than you started with.<\/p>\n What matters is which clients leave. If a top account walks, price probably was not the real issue. Ask directly: was it the number, or something about how the work has been going lately? You will usually get an honest answer, and it is worth more than the retainer.<\/p>\n Do not roll the increase back across the board. A universal reversal teaches everyone that your pricing moves when pressed. If the plan misfires, fix the scope, fix the delivery, or slow the rollout \u2014 then hold the number.<\/p>\n If you would rather not rebuild the margin math from scratch, the Price & Margin Reset Planner<\/a> includes an 8-page start-here guide and a 13-sheet Excel planner with 267 formulas for working out realized rate, target rate and scenario comparisons before you send a single email. If you want to see what else fits the next quarter, the rest of the Cursiqa shop<\/a> is there when you need it.<\/p>","protected":false},"excerpt":{"rendered":" A sequenced plan for raising your rates: set the number from margin, choose who hears it first, pick a defensible notice period, and answer pushback without discounting.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[49],"tags":[104,117],"class_list":["post-424","post","type-post","status-publish","format-standard","hentry","category-marketing-operations","tag-client-retention","tag-raise-prices"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tDecide Who Hears It First<\/h2>\n
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Set a Notice Period You Can Defend<\/h2>\n
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Write the Message That Does the Work When You Raise Prices<\/h2>\n
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Write Your Grandfathering Rules Before You Need Them<\/h2>\n
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Handle Pushback Without Discounting<\/h2>\n
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When Too Many Say No<\/h2>\n