How to Raise Your Rates (Scripts and Timing for Agencies)
You raise your rates by giving existing clients clear, advance notice of a new price and applying it to new clients immediately. The hard part is not the math, it is the conversation, and the fear that good clients will leave.
This guide gives you the timing triggers that justify a raise, four approaches compared, and a word-for-word email you can send this week.
Quick summary
- Raise new-client rates first; they have no anchor to your old price.
- Give existing clients 30 to 60 days written notice before a change.
- A 10 to 20 percent annual increase is normal and rarely causes churn.
- The right time is when you are at capacity, fully booked, or visibly more skilled than when you set the price.
- Anchor the increase to value delivered, not your costs, in the proposal or notice.
When to raise your rates
You do not need permission, you need a trigger. Any of these justifies an increase:
- You are at capacity. A full pipeline is the market telling you that you are underpriced.
- It has been 12+ months. Standing still on price is a real-terms pay cut.
- Your skill or results have grown. New case studies and outcomes raise your value.
- Costs and benchmarks have moved. Tools, salaries, and market rates all drift up.
- A client is more work than they pay for. Reprice them specifically, or let them go.
If two or more of these are true, you are overdue. The longer you wait, the bigger and more awkward the eventual jump.
Four ways to raise rates, compared
How you raise matters as much as whether you do. Each approach fits a different situation.
| Approach | How it works | Best for | Risk |
|---|---|---|---|
| New clients only | Old clients keep current rate, new clients pay more | Testing a higher price safely | Slow; legacy clients stay underpriced |
| Across-the-board increase | Everyone moves up on a set date | Simple, fair, easy to administer | A few price-sensitive clients may leave |
| Grandfather + sunset | Existing clients held for a set period, then aligned | Long relationships you want to keep | More tracking; delayed upside |
| Reprice on scope change | Increase at renewal or next project | Retainers and repeat work | Only triggers when work changes |
Most agencies combine "new clients only" immediately with an "across-the-board" increase for existing clients at the next natural review point.
How much to raise
For an annual adjustment, 10 to 20 percent is normal and rarely triggers churn. If you are correcting years of underpricing, a larger jump may be needed, but stage it: a 40 percent correction can go 20 percent now and 20 percent in six months, which feels fairer than one shock.
If you are unsure of your floor, rebuild the number from costs and utilization first so the new rate is defensible, not arbitrary.
The rate-increase email script
Keep it short, confident, and free of apology. Notice the structure: appreciation, the change, the date, the door left open.
Subject: Update to our rates for 2026
Hi [Name],
I've really valued working with you this year, and I'm proud of what we've delivered together [reference a specific result].
Starting [date, 30 to 60 days out], my rate will move to [new rate / new retainer]. This keeps my pricing in line with the value of the work and lets me keep giving your account the attention it deserves.
Nothing changes before then, and I'm happy to talk through the details on a quick call. Thanks for being a great client to work with.
[Your name]
No long justification, no listing your rising costs (the client does not care about your software bill), and no asking for permission. You are informing, not negotiating.
Make the increase stick
Send the notice in writing and update the agreement so the new rate is documented, not just mentioned. Apply the new number to every new proposal immediately, and set scheduled invoices to the new amount on the effective date so nothing reverts by accident. For retainers, fold the change into the renewal so it lands as a routine review rather than a surprise.
When raising rates is the wrong move
Honest version: a raise is not always the answer. If your churn is already high, your delivery is shaky, or you are missing deadlines, a price increase will accelerate the losses, not fix them. The line a "charge your worth" coach won't say: sometimes the right move is to lose your worst-fit clients on purpose and not replace them at any price, because the problem is your client mix and capacity, not your number. Fix delivery and positioning first, then raise from a position of strength.
Frequently asked questions
How much should I raise my rates each year?
An annual increase of 10 to 20 percent is normal and rarely causes clients to leave. If you are correcting years of underpricing, stage a larger jump in two steps a few months apart so it feels fair.
How do I tell existing clients about a price increase?
Send a short written notice 30 to 60 days in advance that thanks them, states the new rate and effective date, and leaves the door open for a call. Inform rather than ask permission, and skip the long justification.
When is the right time to raise rates?
When you are at capacity, it has been a year or more since your last change, your skills and results have grown, or market rates have moved. Two or more of these together means you are overdue.
Will I lose clients if I raise my rates?
Usually only a few, and often the most price-sensitive and demanding ones. A modest, well-communicated increase with notice typically keeps your best clients, who value results over the lowest price.
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