Raising your rates doesn’t have to be something scary, it’s something you should celebrate because it means you’re growing!
I understand there is fear around raising your rates though, you might start questioning if you’re really worth X amount more (you are) or wondering if your clients will leave because you’re raising their rates (they won’t).
I recently came across a question in my Facebook group where someone asked how she should go about raising her rates. The first time you do it can be a little overwhelming but it always gets easier, like everything!
I have a script I love to use to show your value and how it makes you more desirable to work with. See below for the copy!
Good morning. How are you?
The purpose of reaching out today is to notify you that as of (insert date of increase), there is new pricing for your current program.
We value having you as a client & cherish our long-standing relationship with you.
This is the first price increase we’ve done in (however long). As a business owner, you can probably relate to the fact that this is a necessary step to continue to offer the same level of service our clients have come to expect.
The program that you are currently receiving is now offered to entrepreneurs at $X per month/project/quarter.
As a valued client, we are only increasing your rate to $X per month (a savings of $X per month and $X per year).
Please confirm that you have received this email. Again, your new pricing will take effect on (insert same date as above.)
We are looking forward to continuing to serve you and your business for years to come.
Please let us know if you need anything, we are here to be a resource for you and your business.
The easiest way to start feeling comfortable raising your rates is by pitching new clients your new rate. This will give you insight into how someone you’ve never worked with before reacts to your rates.
When you’re moving on to start letting your current clients know you’re raising your rates I suggest two different types of clients to start with.
Start with the client who you don’t enjoy working for anymore.
The truth is, we all have a client who we find ourselves pushing to the bottom of the to-do list repeatedly. There could be a variety of reasons for this but regardless of what they are, if you’re no longer enjoying working with them, let them know first.
Let the client know who vastly underpays you.
This might be one of your first clients you signed on and you’re still working for them at $25/hour when your new rate should be $40/hour. You know you’re worth more and this is causing you to no longer prioritize them like you used to. I suggest a small increase, maybe $5/hour, depending on how much you’ve increased but you do want to be fair to them.
Listing out your clients in order of who you want to raise your rates with first can be beneficial. And although it doesn’t happen often, you should always be prepared for the possibility of them ending your contract.
Take each client on your list and let them know you’re raising your rates with the copy provided above. You should give them at least 30 days notice to increase their rates so they can budget accordingly.
For example, if it’s October 23rd and you want to increase your client's rates, you may want give them until December 1st. That way they’re getting another pay cycle in at their current rate before the increase.
If you’re worried that your clients are friends and they’ll talk, stay tuned for next week's blog post about what you should do when your clients communicate with one another.
Raising your rates might feel a little uncomfortable the first time you do it but it’s better to ask for what you deserve than go through your business feeling resentful because you feel undervalued. You want clients who understand and support your growth and are happy to pay you for it.
Rooting for you,
Meridith
