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How Do I Double my Prices on a Current Client Without Losing Them?

Anything considered a "hustle" and not necessarily a CENTS-based Fastlane

FlorianR

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Hi,

I'm a freelance copywriter and I have a client for $45/hr. We have a great working relationship and she consistently tells me how much she values my work, so she's VERY happy with how much value I'm providing her. She's also a very empathetic client and really makes an effort to check in with me to make sure I have enough hours to live on etc.

We've worked for 6 months together and since then I've steadily raised my prices for new clients. I just got a new client for $80/hr a few weeks ago and that's now my going rate.

I want to raise my price on her from my old rate of $45/hr to my current rate of $80/hr but I'm not sure how to go about this smoothly. I'm worried that she'll be taken aback by basically almost doubling my pay for the same work and might have second thoughts, but at the same time I know she values me a LOT and does not want to lose me. I think I have a very good chance at doing this successfully because of our relationship I just don't know how to make it smooth and make it seem as reasonable as possible.

If you're a successful freelancer who successfully 2x their rates or more on current clients I'd love to hear your advice.
 
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biophase

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I would try a smaller increase first. Maybe say that your prices are going up for 2022 and that new clients are now $80/hr but current clients are only $65-$70/hr. Maybe you can leave it at that and raise them to $80 in 2023.
 

Rabby

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Hi,

I'm a freelance copywriter and I have a client for $45/hr. We have a great working relationship and she consistently tells me how much she values my work, so she's VERY happy with how much value I'm providing her. She's also a very empathetic client and really makes an effort to check in with me to make sure I have enough hours to live on etc.

We've worked for 6 months together and since then I've steadily raised my prices for new clients. I just got a new client for $80/hr a few weeks ago and that's now my going rate.

I want to raise my price on her from my old rate of $45/hr to my current rate of $80/hr but I'm not sure how to go about this smoothly. I'm worried that she'll be taken aback by basically almost doubling my pay for the same work and might have second thoughts, but at the same time I know she values me a LOT and does not want to lose me. I think I have a very good chance at doing this successfully because of our relationship I just don't know how to make it smooth and make it seem as reasonable as possible.

If you're a successful freelancer who successfully 2x their rates or more on current clients I'd love to hear your advice.
It's hard to say what works, and with whom. I do some work now that I bill hourly. The folks I bill know that I don't really need the work, and that may have a leverage effect. I ended up changing my rate for new projects (law cases) to 2.25x the old rate. There were no complaints. For cases I had already started, I kept the same rate, just because.

In my market there are people who charge significantly more than me. One guy who I refer cases that I can't take charges 3x my old rate. The same thing was also true years ago when I did freelance writing... using hourly or "per sales letter" or "per postcard" type billing, the hourly rate could really be up there. Hundreds per hour. But of course it had to be worth the cost to the client.

I would say, if you have other clients, or other things, that you can be doing for $80 per hour, once you're sure that's stable and sustainable, let the original client know. There's probably a decent way to transition. For example "on this date, I'll start billing at this rate," or "for new projects I'll start billing at this rate." If that's what you want to do. Seems like a good idea to increase the rate for this client if you can find clients at almost 2x the rate though... why not make more money?

Also consider eventually packaging your services. "A business letter" or "a 10 page web copy package" can sell for a good amount because a person understands what it is. They may not understand what 12 hours of your time is. If you can package that, and set limitations for revisions, etc, your effective hourly rate goes up with your writing efficiency.
 

BizyDad

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I would try a smaller increase first. Maybe say that your prices are going up for 2022 and that new clients are now $80/hr but current clients are only $65-$70/hr. Maybe you can leave it at that and raise them to $80 in 2023.
This tactic has worked for me.

If you are concerned that just a straight price increase convo will scare them off, you can always soft open the conversation by asking if they are open to a fee increase. In my experience, most clients who appreciate you will of course say yes.

Mentioning what you charge others is a good anchor point that will help the modest 50% increase seem more reasonable...
 
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Bigguns50

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I would try a smaller increase first. Maybe say that your prices are going up for 2022 and that new clients are now $80/hr but current clients are only $65-$70/hr. Maybe you can leave it at that and raise them to $80 in 2023.
I agree with this. I've raised my prices and will do so again in the future. I have also added perceived value. These have been at no or low cost to me but the customer perceives the added value as a great deal.
 

FlorianR

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I agree with this. I've raised my prices and will do so again in the future. I have also added perceived value. These have been at no or low cost to me but the customer perceives the added value as a great deal.

Can you give an example of adding low cost perceived value?
 

MJ DeMarco

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I'd say something to the effect that was already mentioned.

Unfortunately like many businesses are having to do, we recently had to raise our rates. Effective Jan 1st 2022, our new rate for X services will be $100/hour as advertised on our website and on our advertising platforms. See attached price sheet for 2021. To ensure you continue to receive quality service and the attention you deserve, we also had to limit our customer acquisition to a fixed number of clients. That said, as an existing client of ours we want you to know that we value your business highly and know that any price changes can be unnerving. As an appreciation and as our existing customer, you shall always enjoy 10% off our new business rates.
 
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WJK

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Hi,

I'm a freelance copywriter and I have a client for $45/hr. We have a great working relationship and she consistently tells me how much she values my work, so she's VERY happy with how much value I'm providing her. She's also a very empathetic client and really makes an effort to check in with me to make sure I have enough hours to live on etc.

We've worked for 6 months together and since then I've steadily raised my prices for new clients. I just got a new client for $80/hr a few weeks ago and that's now my going rate.

I want to raise my price on her from my old rate of $45/hr to my current rate of $80/hr but I'm not sure how to go about this smoothly. I'm worried that she'll be taken aback by basically almost doubling my pay for the same work and might have second thoughts, but at the same time I know she values me a LOT and does not want to lose me. I think I have a very good chance at doing this successfully because of our relationship I just don't know how to make it smooth and make it seem as reasonable as possible.

If you're a successful freelancer who successfully 2x their rates or more on current clients I'd love to hear your advice.
I'm in the real estate residential rental business as well as other side gigs. I have raised my rents over the fall/winter months for some of my tenants. The rents have gone up considerably here in my area -- about 25% - 26%. I have some others that I'll be raising this coming spring. I don't do it all at once. I have had several tenants move in at the current rental rates. My biggest problem, like yours, is my current tenants. I have had only a couple of tenants really howled over the increases. I try to give them a lot of warning time before the new rates go into effect. There's never a good time to do it.
Note: I've also upped the price on washes at my self-service Laundromat -- 25%, the candy in my candy vending machine -- 20%, and this coming summer's rate on full hook-up RV spaces -- 25%.
I would try to smaller increase right now, and then do a yearly increase until you get to the point you wanna be.
 

Bigguns50

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Can you give an example of adding low cost perceived value?
We added cell phone holders on our Ebikes. Cost $6.00. They love them.

I made bungee cords so they could strap their personal belongings on the back of the ebikes. Cost...maybe $1.00.

I give renters access to our Google Maps. I spent time setting this up at no cost. They can choose where to ride based on our personal recommendations. I have descriptions and pics. HUGE value for our customers.

For our Tours, my guides have lapel microphones and our customers have earpieces so they can hear them talk. I still consider this low cost for us. They love it.
 

WJK

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We added cell phone holders on our Ebikes. Cost $6.00. They love them.

I made bungee cords so they could strap their personal belongings on the back of the ebikes. Cost...maybe $1.00.

I give renters access to our Google Maps. I spent time setting this up at no cost. They can choose where to ride based on our personal recommendations. I have descriptions and pics. HUGE value for our customers.

For our Tours, my guides have lapel microphones and our customers have earpieces so they can hear them talk. I still consider this low cost for us. They love it.
Good for you. Adding value a lot of times doesn't cost a lot of money. It's all about the personal relationships and your customers feeling that you care!
 
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G

Guest-5ty5s4

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It's important, in business, to have a plan for increases long term. Inflation never stops, so you should at the very least have an annual 2-5% rate increase. This applies even more to established companies than freelancing, but if anyone is reading, the point stands: always have a plan for increases, and DO NOT skip an increase, because it will bite you in the @$$ when you try to "make it up" later.
 

FlorianR

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Thanks for all your comments! I’m going to consider all your advice to set up my own plan and set up a meeting with my client next week to execute this. I’ll let you know how it turns out.
 

Dangerous Donna

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I would try a smaller increase first. Maybe say that your prices are going up for 2022 and that new clients are now $80/hr but current clients are only $65-$70/hr. Maybe you can leave it at that and raise them to $80 in 2023.
No don’t wait. Inflation has already lowered your profit. Everyone knows all prices are up, gas, rent, food etc. Raise it up to the top
 
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Dangerous Donna

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Thanks for all your comments! I’m going to consider all your advice to set up my own plan and set up a meeting with my client next week to execute this. I’ll let you know how it turns out.
A meeting? Are you going to ask your client or guide your client into the higher rate?
 

Johnny boy

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EASY

Stop charging hourly

If you bill a project for 12 hours, you would've made $540

For the next project you estimate will take 12 hours, charge $1,080. Not "$90 an hour". Charging hourly is for employees.

"But what's the hourly breakdown?"
"We are now doing a 'set project price' so that you don't have to worry about the job taking extra time and costing you money unexpectedly. Now, all that matters is that you're happy with the result and you know what the costs will be upfront".

You may lose this customer. There's no guarantees. You should expect them to leave constantly and be finding new customers regardless. You can lose a customer for any reason, even ones that aren't your fault, so don't worry about that.

When you SELL YOUR TIME, YOUR TIME NOW BELONGS TO SOMEONE ELSE. And man, that's the only thing that actually matters.

Also, stop being a freelancer. Freelancers are broke people trying to make a buck. Do it pro from the get go. Smart men start firms, companies, organizations...broke dudes freelance.

How do you stop being a freelancer? You stop calling yourself and positioning yourself as one. Go find a company that offers copywriting services, I bet they make a lot more than you and they could very well be just one individual who positions themselves professionally. I was doing web design and I'd have my girlfriend answer calls like a receptionist, put them on hold and connect them to my friend who would pretend to be the inside sales rep for the exact industry that the customer was in, and then get handed off to me (the project manager for this specific project), and it made us seem like we had a big office full of teams of people. Anyone that called in was expecting us to charge 10 grand minimum for any work I did.

So I could easily get away with charging $2k to build a website that took a day or two. I did all this while vacationing in Thailand. The only problem was that I could only get a couple clients a month like that, otherwise I would've went harder and made a decent amount of money.

The point is to stop charging hourly and stop being a freelancer.
 

FlorianR

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Mar 16, 2021
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Update: I was able to guide my client to my new $80/hr rate without losing them. She had to sort out some logistics and it’s going to be implemented in February. After that we’ll discuss a possible monthly retainer deal to replace my hourly pay.
 
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