As entrepreneurs, the evolution of our skills, experience, and the value we bring to clients often call for a reassessment of our pricing structure. Communicating this rate increase to clients may seem intimidating, but with the right approach, you can maintain strong client relationships while ensuring your worth is accurately reflected in your rates.
Bonus Tip: When you decide it’s time to increase your rates, Wethos Services Library, which includes 4000+ pre-built and pre-priced services can help you accurately price your work based on what your peers are charging!
In this post, we will provide step-by-step instructions on how to craft an effective email template when raising your rates. Learn how to communicate your value and navigate this transition smoothly to maintain client satisfaction.
There's also a newer challenge to plan for. Many clients now assume AI makes professional work faster and cheaper, so a rate increase may be met with "Why is your price going up if you're using AI?" After the template, you'll find exactly how to respond if that comes up. For more on why faster work shouldn't mean a lower price, see our guide to freelance pricing.
What is a Rate Increase Email?
A rate increase email is a professional communication sent to clients to inform them of adjustments to your pricing structure. It serves as a transparent way to communicate changes in your rates while reaffirming your commitment to providing quality service. Common places you may send a rate increase email include email platforms like Gmail, business management tools such as Wethos, or even talked through over a Zoom call.
How to Send a Proposal Email in 5 Steps
Informing your clients about rate increases requires tact, clarity, and empathy. Follow these five steps to craft an effective rate increase email:
1. Subject Line
Begin your email with a subject line that immediately grabs the recipient's attention and sets the tone for an important announcement. For example: "Important Update on My Rates".
2. Explanation
Express appreciation for the working relationship. Then, highlight that you have undertaken a review of your rates and briefly explain the reason behind the rate increase. Highlight factors such as your growing expertise, increased demand for your services, or adjustments to industry standards. Emphasize that the adjustment ensures the continued delivery of exceptional service and results.
3. Effective Date and Transition Details
Specify the date from which the new rates will be effective. This allows clients to prepare for the change and adjust their budgets accordingly.
Address any concerns the client may have by assuring them of a smooth transition, highlighting the benefits they will continue to receive by working with you and your enhanced expertise.
4. Encourage Discussion
Invite the client to reach out if they have any questions, concerns, or considerations. Reinforce your commitment to their satisfaction and the success of your collaborations. This demonstrates your commitment to transparency.
5. Closing
End the email with a professional and positive closing, reiterating your appreciation for the client's partnership and your excitement about continuing to work together.
Email template when telling your clients you're raising your rates
Subject: Important Update on My Rates
Hello [Client Name],
Hello [Client Name],
As I continue to grow and evolve in my freelance journey, I've recently undertaken a review of my rates. After careful consideration and in line with industry standards and the value I strive to provide, I've made the decision to adjust my pricing structure.
Effective [Date], my rates will transition to reflect the quality, expertise, and dedication I bring to our projects. Rest assured, this adjustment is aimed at ensuring I can continue delivering the exceptional service and results you've come to expect from me.
I understand that changes like these can prompt questions or concerns, so please feel free to reach out if you'd like to discuss this further or have any specific considerations. Your satisfaction and the success of our collaborations remain my top priority, and I'm committed to ensuring a smooth transition for both of us.
Best,
[Your Name]
What to Say If a Client Pushes Back and Mentions AI
A common version of this pushback sounds like: "We understand, but we've started using AI for a lot of this work internally, so an increase is hard to justify."
It's tempting to negotiate the percentage, but that keeps the client comparing you to a tool. Bring the conversation back to the results you deliver instead. You have two ways to respond, depending on the client and the relationship.
Option 1: Keep your new rate.
Use this when the relationship is strong, and your work clearly supports the increase.
Subject: Re: Important Update on My Rates
Hello [Client Name],
Thank you for raising this. I want to address it directly.
AI tools have sped up parts of my process. What you rely on me for is the same: understanding what [company] needs, catching issues before they become problems, and being accountable for the results.
Over the past [time period], that work has led to [specific result]. That's what my rates are based on, and it's what I'm committed to delivering going forward.
My new rate of [new rate] will take effect on [date]. I'm happy to set up a call if you'd like to talk it through.
Best,
[Your Name]
Option 2: Suggest a different pricing structure.
Sometimes it's better to change how you charge, not just how much. If your client is comparing your hours to what AI can do, a project fee or monthly retainer takes hours out of the conversation. When you find faster ways to work, your client gets the work sooner instead of a smaller invoice.
Subject: Re: Important Update on My Rates
Hello [Client Name],
Thank you for raising this. I've been thinking about it too.
If we're both looking at hours, faster work does make it seem like the price should go down. I think we should measure it by the result instead: [outcome], handled well and on time.
Instead of an hourly increase, I'd like to propose [a project fee of $X for (deliverable) / a monthly retainer of $X covering the scope below]. This gives you a predictable cost, and you'll still benefit from faster turnaround.
Scope: [two or three lines]
Would it help if I put this into a proposal so you can compare it side by side with your current rate?
Best,
[Your Name]
Sending a proposal gives your client two options to choose from, which is easier than debating your rate. Our proposal templates can help you put one together quickly.
Replies to Avoid
Some responses feel polite in the moment but end up weakening your position:
"I only use AI for small tasks." This makes your tools sound like something to apologize for. They're part of a professional process, so talk about them that way.
"Can we meet in the middle?" This signals your rate was negotiable and invites the same conversation the next time you need to increase your rates.
"I'll keep your current rate for another six months." This delays the conversation without resolving it. They’ll likely resist again six months later.
"You're right, AI has made this faster." It may be true, but it brings the focus back to your hours instead of your results.
A well-thought-out and professional rate increase email is essential to maintaining client relationships while accurately reflecting your worth as a consultant or freelancer. By clearly communicating the reasons behind the rate adjustment and highlighting the continued value you bring to their projects, you can navigate this transition smoothly. Implement the steps outlined above to ensure a transparent and successful rate increase process.
And if you decide to move a client to a monthly arrangement, our guide to freelance retainer contracts walks you through setting one up.
To create professional proposals and invoices, sign up with Wethos now and unlock a new level of control and ease in managing your business. Get started for free today!