Here is one method that is respectful of your clients and feels may feel more comfortable to you.

Decide how much you are raising your rates and when the new rates will go into effect. Let’s suppose that it is September, you currently charge $100 per hour, and you want to increase your rate to $110 per hour the following January.

As soon as you decide to raise your rate, prospective clients are quoted the new price immediately. Do not give new in-coming clients the old rate and tell them that it will increase in January. Start charging the new rate as soon as you set it. You may have to work through some discomfort at stating your new rate to prospects.

To your existing clients, say this: “I want to let you know that I am raising my rates, but since you are a current client, I will not raise your rate for three months. My new fee is $110, and new clients are already billed this amount. I really value our work and enjoy working with you, so I am going to wait until January to raise your rate.” You are telling them that they are getting a deal and that others are already being charged more.

I have always followed this process when raising my rates. Because of the ongoing relationship, I give my existing clients about three months’ notice. When I tell them that I’m raising their rate but not for three months, they often thank me, especially when they know that others are already paying more.

I announce a rate-hike in a letter that doubles as a marketing opportunity. I send my clients a letter that has other information (new schedule, hours, services, and so on), and in the letter, I inform them that I’m raising my rate.

A colleague of mine sent out a letter to all her past clients, informing them that she was raising her rates. (She had asked for my advice on how to do this.) She had not seen some of these clients in a long time. She was nervous about announcing a rate hike and wondered if she would lose current clients, but she made herself send the letter anyway. She also used the letter as a reason to inform her clients of some of her expanded services and other news items. Imagine her surprise when two old clients, whom she had not seen in a very long time, called her the week they received her letter and booked appointments with her! The letter had, in effect, reminded them about her and her wonderful services, and they couldn’t wait to get back in!

If you want help with this subject, check out www.ratesettingtoolkit.com. I’ve had so many people ask about this subject that I finally bundled the workbook and audios together.

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