Raising your rates will help you keep higher paying clients and minimize the chance of you being overworked and undervalued. This can also help to eliminate those bad clients you dread working with. Over time you have perfected your craft, learned more skills, and brought more to the table for your client. Sending a price increase letter is completely justifiable when you have improved and can deliver more value to your clients than previously.
Whether the increase of revenue is to grow your business or just your bank account, raising your rates is necessary to achieve your goals. Finding out how much to charge your clients will always be a situational scenario. There is no one right answer for everyone, unfortunately. I believe that you know within yourself whether you are happy with your rates. You could try sending a price increase letter to two different clients, testing out two different increases.
In this case, if you can afford to, move on to finding clients that do see the value you bring. Finding your perfect rate is a work in progress, but the worst thing you can do is be stuck on one rate for too long. Feel confident in your work and you deserve this price increase. However, you should be prepared that some clients may not be able to afford your new rates.
At this time you have a decision to make. Some clients may very well not be worth compromising your new pricing for. The difficult ones that only bring you headaches can hit the road, if you choose. Ask yourself: do you enjoy working with this client? Is the work they bring you rewarding and challenging? Do you get excited when they present you with a new project? Other clients who you still wish to continue working with may be worth compromising your new rates for.
Together, come up with a middle rate that they can afford and you are still making what you deserve. As in any relationship, communication is key to its success. Your working relationships with your clients is no different.
To be successful you need to have clear communication at all times, especially when dealing with the financial side — because nobody likes surprises. Sending your price increase via email is totally acceptable.
When writing your price increase letter, you want it to be received well. If you have any doubts in your ability to communicate well, writers from this company can help you to prepare the necessary cover letter or complete other writing tasks. If you are confident in your abilities, try to create a letter by yourself using our advice below. Be straight, honest, and to the point. However, the client may not see it that way. They could think you are doing the same exact work, but at a higher cost now.
A great way to gain the approval from your client on a price increase is to provide an added value to them. In your price increase letter, always start out by showing your appreciation to your client for their support in your business. For example, if your rates are going up January 1st, give them the first 2 months at your current rate for being a loyal client. When sending out a price increase letter make sure you give your clients plenty of notice before the price change goes into effect.
Springing a price change on them would not go over well and could receive a negative response. Below, we have a free sample letter for you — just replace the copy in bold brackets with your own:. We are so pleased to be working with you to [grow your online presence]. Your continued support and confidence in [insert your business name] really means so much to us. We take great pride in the level of expertise we offer, and in order to continue to deliver positive results we will be increasing our rates from [x amount] to [x amount] effective [January 1st].
In an effort to thank you for being such a valued client to us, we want to extend our current rates to you through [Feb 28th]. Allow whatever communication avenue that they choose whether it be email, phone, or an in person meeting. Also, follow up with them. Easier said than done we know, but starting these conversations will positively impact your cash flow!
Here is how to write a letter to clients announcing a price increase. Remember that there is no master price increase template that can be sent to every client. The most important point to remember is that you need to make your price increase letter as personal as possible. Address the client and their individual financial needs first, then they will be much more willing to listen and be understanding about the change. Crafting a letter in just the right way can make a world of difference when it comes to your client deciding to stay with you and accepting the new price.
So where do you start? The first paragraph should be attention-grabbing and outline that things are changing and how it will benefit the client. This letter is about a fee increase and the quicker you can get to the point, the better.
The intent is to announce and explain the change, not to appease clients, so be direct. Avoid tiptoeing around the subject or using hesitant language as this will make the client feel like they can negotiate. Next, you should mention an example of how you have added value or the best results that you have achieved together.
The aim here is to highlight the value that you provide through your service so that you can justify raising your prices. To establish your credibility, just mention an example in your letter. Avoid essay-ing and stay focused on communicating this one message. This is why the next step is to stress what makes you different. Why should the client pay more to stay with you rather than moving to a cheaper competitor? This is the question that you need to answer for your client.
Do you offer an unmatched service and results? Perhaps you offer increased availability that improves your client experience? Whatever it is that makes you unique, you need to highlight this. You have the value that you bring and why you are unique in front of mind for your client. Mention what package and price they are currently paying and then the new price and potentially the package.