Raise Your Rates With Confidence (...without losing clients)

Why You Can’t Afford to Stay Underpriced

$8 for a coffee brick at the grocery store.

$3 for a coke in a restaurant.

Every kind of insurance.

Sure seems like everyone else has no problem raising their prices these days.

Why not you?

I’m willing to bet your costs—business and personal—are going up. Your prices should be too.

In uncertain times, instinct might be to hold off on raising prices. But that’s often what leads to burnout, because you’re having to make up the difference by taking on more work…cash flow stress, because there simply isn’t as much flowing through your fingers…and scarcity spirals, because if you don’t have enough cashflow you end up robbing Dylan to pay Donna.

You’re working harder for less margin. You’re eating the cost of inflation.

Before Raising Prices, Ask Yourself:

“What’s It Costing Me to Stay the Same?”

Start with this quick calculation:                                                             

Current rate: $________
New target rate: $________
Average monthly hours/projects: ________

(New – Current) × Volume = Lost revenue

Even a tiny increase, let’s say you nudge up to $25/hour or tack 10% onto packages, can mean hundreds or thousands more per month. That’s money you could be using to:

Okay. We’ve set the table. Now…

How Do You Actually—safely—Raise Prices?

1. Anchor the Increase in Reality

Key to all of this is letting your clients know you’re not just “charging more.” You’re adjusting to the new normal. And because you’re communicating the increase clearly, your ensuring they don’t experience surprise sticker shock. That courtesy is worth something too.

Try framing it like this:

“Due to rising operating costs and to continue providing high-quality service, my rates are increasing effective [Date].”

Everyone knows inflation is real and prices are nuts. Chances are very, very low they won’t believe, and ultimately, accept, this reasoning. They’ll get it.

2. Offer a Transition Window (or Loyalty Grace)

Everyone appreciates a heads up.

In this circumstance, you’re giving them fair warning that allows them to adjust for absorbing the cost increase. Say something like:

“You’ll stay at your current rate through [End of Quarter / 60 days]. After that, the new rate will apply.”

This gives them time to budget, and shows respect without sacrificing your future margins.

You could even mention that new clients are already having to pay the new rate. Even with a 30- or 60-day window, they’ll feel like they’re getting special treatment from you. That’ll help them feel better about the price increase.

3. Add Value Before You Add Cost

To counteract “price sensitivity,” improve the perceived value of your work, even if nothing major changes. What little extra can you give them that doesn’t cost you any money or time?

Try:

“Just a heads up. I’ve added a new layer of strategy support to all my packages. That’s included going forward.”

That way, the price increase feels like a package upgrade, not just inflation passed on.

4. Switch to Tiered Offers, Not Just One Flat Rate

Clients under pressure love choices. Give them 3 options:

Now your price increase becomes a choice, not a mandate.

And chances are? Most will stick to the middle, which now costs more than before. This is the proven “compromise effect” in behavioral economics and psychology. Most people are wired to avoid the extremes. A proven sales tactic.

5. Don’t Ask For Permission

If you ask to raise your rates you’re giving your clients the option to say ‘no’.

Don’t.

Instead, try something like this:

Subject: New Pricing Schedule Starting [Date]

Hi [Client Name],

I’m writing to let you that starting [date], my pricing will increase. This is due to rising operating costs and the expanded value I’ve added to our work together.

Because you are a loyal client, you’ll stay at your current rate through [Grace Period], and any work you chose to have done in that time, I’m happy to honor at the current rate.

Thank you for choosing to work with me. I value having you as my client. Please let me know if you’d like to schedule work under the current rate before it changes.

Sincerely,
[Your Name]

Asking for the sale while increasing prices? That’s next level.