Comments on: QOTW-How Do You Gracefully Raise Client Rates?

By: Char

Char — Tue, 30 Jan 2007 12:55:22 +0000

TX Writer – I love that response! Tactful but firm.

By: TXWriter

TXWriter — Tue, 30 Jan 2007 02:59:53 +0000

This is such a very good question, and so timely too (coming right at the start of a new year).

I don’t have published rates, but I do have clients who are accustomed to me doing lump sum work for a certain amount.

I think the following is a good way to open rate discussions:

“I would love to do this project, but the last time I did one of your projects it actually took more time than we estimated. I think that is because (list reasons). This project seems very similar, I would very much like to work on this project for you, but I think this is a better price for it (client’s lump sum offer + x).”

If they say “no,” then you will have to decide if you can afford to work for what they are willing to pay.

A lot of times the clients really don’t realize how much work we do. I keep my own spreadsheet of my times (a timecard, so to speak), for each project. It’s important to track any unexpected or unusual work that you do as well (extreme difficulties in researching, for example).

By: Courtney

Courtney — Mon, 29 Jan 2007 21:18:11 +0000

Hmmm…that is a good one! I recently changed my rates, but am changing venues of where I do business (bidding sites vs. marketing myself directly). My bidding site work was done at a much lower rate (and underpaid rate) because that’s what getting work there required.

I have just a few clients that I’ve stuck with from the bidding sites. They are in the mid-range, and since they are so loyal, I am just keeping them at the current rate, and charging the new rate to new clients only.

By: Char

Char — Mon, 29 Jan 2007 20:12:34 +0000

Angela – I forgot to consider your 3rd point – what value am I receiving from having that particular client in my portfolio. Thanks for reminding me!

Gayla – I’m glad that conversation has kept you thinking. Looking for more people to chime in – inquiring minds want to know!!

By: Gayla

Gayla — Mon, 29 Jan 2007 19:44:33 +0000

Great question! I’m looking forward to seeing what others say as well. I’ve found myself much in the same boat and have been thinking about this since you mentioned it a few months ago.

Some of the more “demanding” clients actually make it very easy to raise rates Just think of them when you do it lol

By: Angela

Angela — Mon, 29 Jan 2007 18:46:10 +0000

If I were a talented graphics artist I would probably do this:

- Present the higher rate to the newbie client
- Grandfather the die-hards into the older rate
- Consider what type of referrals your current clients are sending you
- Maybe offer up some freebies to those that will market you via ads etc

(I say that because there are graphic artists out there right now that get all sorts of traffic from the referrals that they are getting from people that link to their biz and it seems nothing is ever worked out as a sort of “thank you” for your dedication, etc. Not even a discount on future projects.)

Don’t be afraid to raise your rates. As the cost of living rises so must your rates otherwise you might as well do it all for free right?

Definitely recognize those that support you and are true blue fans of your work. One way to lose loyal customers is to ignore them.

By: Char

Char — Mon, 29 Jan 2007 17:08:44 +0000

Thanks Tony! I really value your opinion all three of your points make good sense.

By: Tony D. Clark

Tony D. Clark — Mon, 29 Jan 2007 16:57:56 +0000

I’ve done both. In my various businesses, I’ve used 3 methods most often:

- Market: What does the market look like? You canâ€™t base everything on what others in your field are doing, but it’s a good place to start.

- Value provided – Does what you’re doing now make or save more money for your clients then when you began?

- Relationship – I always offer a discount to clients who’ve been with me for a while, and those who we’re doing multiple projects with.