When to Increase Your Prices

I'm raising my rates. And it's not as easy as the "Just raise your rates!" advice you've likely seen in your inbox, on your LinkedIn feed, and in your communities. Pricing isn't just a confidence exercise; it's a strategic decision that has major implications around who you work with and how you operate. Here's some nuance for your thought process: 🧠 Client Experience What do clients expect at this price point? What needs to get simpler, clearer, or faster? What needs to get more complex and deeper? If your offer doesn’t deliver at the level your price promises, you're going to have a lot of unhappy clients. 🧠 Boundaries Who does this price weed out? What conversations are you going to stop having? Where do you need firmer scope, timelines, or communication rules? Shifting your price without building your boundaries can pull you back into lower rates. 🧠 Brand Signals What are you currently signaling about the value you bring to the table? Does your website, pricing, content, referrals, positioning ( the list goes on!) send the signals that convey the value of your work and the price you want to charge? Pricing is a big part of your brand and how you show up in the world. Send mixed signals and get misaligned clients. 🧠 Brand Alignment Who else serves the clients you want to serve? How do they talk about their work? What partnerships do you need to pull back on, versus which do you need to lean into? Your network can help you build credibility—but they need to help you build it with the right people. Raising your rates isn't *just* about charging more. So don't treat pricing like a pep talk (even though you might need that, too!). Treat it like a strategy project.

If you haven’t raised your rates in three years, you’ve effectively discounted your services. I often see partners hesitate when the topic of increasing fees comes up. The immediate reaction is concern: what will clients think, will referrals slow down, will this damage relationships that took years to build? So the decision gets postponed. Another year passes. And then another. Meanwhile, associate compensation rises, software subscriptions increase, malpractice premiums adjust, and general operating costs climb steadily. Without realizing it, the firm absorbs those increases instead of pricing them into the work. This is not simply a conversation about raising law firm hourly rates. It is a broader law firm pricing strategy issue. When rates remain unchanged for years, law firm profitability erodes incrementally, and what looks like “stability”, is actually a gradual discounting of your expertise. Instead of waiting until margins feel uncomfortable:  - Build a structured annual pricing review into your planning process.   - Evaluate your effective hourly rate.   - Compare your positioning against firms in your market.   - Decide on adjustments deliberately, communicate them clearly in advance, and tie them directly to the value and outcomes you deliver. Treat pricing as a strategic lever for law firm revenue growth, not a reaction to pressure.

How a simple pricing tweak added £50k in revenue for Noah When Noah came to me, his business was doing well, But he felt stuck. Revenue had hit a ceiling, and he wasn’t sure how to push past it. → The Problem: Noah hadn’t adjusted his prices in years. His services evolved, But his pricing hadn’t kept up with the value he was delivering. He was essentially undervaluing his work. → The Approach: Here’s what we did to unlock that extra revenue: 1. Increased Prices by 10% It matched the value he was already delivering. 2. Introduced Tiered Pricing Clients now had options based on their budget and needs. 3. Streamlined His Offers We focused on what clients wanted, cutting the fluff. The Result: Noah saw an extra £50k in revenue within a year, with no drop in customers. In fact, clients appreciated the clarity and value more than ever. When was the last time you reviewed your pricing? Sometimes, the simplest tweak can lead to big results.

As a finance practitioner, increasing your rates can be uncomfortable. But if value increases over time, you deserve to get paid what you’re worth. Here’s how to do it with tact. 1 - Announce in advance that rates will be increasing. No firm or client likes surprises, especially those that cost them more. Rather than spring higher prices upon them without notice, share many months in advance that higher rates reflect greater value and changes in the market. Of course, new rates must reflect the actual reasons. If they‘ve increased for no reason, don’t expect clients to willingly accept them. 2 - Offer a flexible ramp up period When increasing rates, consider doing so at a natural cutoff period — year end. That way, the timing isn’t arbitrary. It coincides with the calendar. In addition, give clients the opportunity to lock in prior-year rates. Explain that rates are going up, but if they’d like to keep existing rates for a grace period, they can do so. That may require executing an agreement now that will extend into the next calendar year. Work together can continue under the existing terms, extending out into the future, and then allowing adoption of new terms at a future date. This approach guarantees future revenue for you as a practitioner and brings confidence to partners that continuing work together won’t bring about an immediate rate premium. 3 - Be flexible and transparent Remember that advisory arrangements don’t always fit into neatly designed packages. Being inflexible forces the other party into a take-it-or-leave-it decision. That often doesn’t work well. Partnerships should center around trust and shared interests. Be open to different arrangements that address the needs of all parties.

Materials and energy prices are up. Interest rates are increasing. Inflation is likely rising too... You can’t control any of that. BUT you can control your response. And that’s what matters. These external shocks are the same for everyone. Your competitors are dealing with them too. The difference? How you react. My advice: 1) Understand them Know the impact on your business - properly. Review your pricing 2) Understand your direct and indirect costs. Know your gross margin. Know your break even point. 3) Increase your prices Yes - you need to. Communicate it clearly. Explain why. 4) Review your short-term cash You should already be doing this. Weekly rolling cash flow forecast. Spot issues early. Speak to funders if needed. 5) Repeat this regularly At least quarterly. This is not a one-off exercise! Because if you do nothing… Your gross margin will decline. Your profitability will fall. Your cash will worsen. And that’s how good businesses get into trouble. Do the work... stay on top of your numbers. Make better decisions before the numbers make them for you!

I love New Zealand. It’s my home. But let’s be honest - our mindset around pricing can be way too polite. We’ve got a very “Kiwi” way of thinking about pricing: • Don’t charge too much. • Don’t make a fuss about our value. • Don’t rock the boat. We mistake humility for strategy. We think being affordable is a virtue. And we convince ourselves that if we just do good work, people will pay us fairly. Spoiler: they won’t. What actually happens? You get buried in low-margin work. You attract the most demanding, price-sensitive clients. And you wake up one day wondering why you’re still stuck at $20K months with a team running on fumes. I’ve seen business owners almost double their prices and instantly improve margins, quality of clients, and even team morale. Not because the offer changed - But because they finally started valuing it properly. Here’s what you need to understand: Undervaluing yourself doesn’t make you more likable. It just makes you less profitable. You think keeping prices low keeps customers happy? Reality check: it trains them to expect more for less. And the ones who push back hardest on price? They’re always the ones who cause the most chaos later. Understand your true costs. Charge more if you need to. Say it with your chest. And watch who stays in the room. Pricing isn’t just about covering your costs though. It’s a statement about who you are, what you deliver, and who you’re for. So if you’re still playing nice with your pricing because you don’t want to “look greedy”… Ask yourself this: Are you building a business or a charity with a logo?

As we approach the New Year—a perfect time for adjustments—many companies handle price increases much like the guy in the photo: underprepared and hoping for the best. But increasing prices doesn't have to be a risky gamble. Here's how to carry your "eggs" safely into 2025 with an effective price increase strategy: 1️⃣ Strategic Planning Price increases require careful calculation: ➡️ Market Analysis: Understand industry trends. If raw material costs have risen due to supply chain issues, acknowledge how this impacts pricing. ➡️ Competitive Landscape: Know your position. If competitors are also raising prices, align your strategy to prevent customer loss. ➡️ Value Assessment: Evaluate your unique offerings. Highlight enhancements or superior services that justify the increase. 2️⃣ Transparent Communication Honesty builds trust: ➡️ Advance Notice: Inform customers ahead of time to show respect and allow budget adjustments. ➡️ Explain the Reasons: Clearly state why the increase is necessary—be it higher costs or improved services. ➡️ Highlight Continued Value: Emphasize the quality and benefits they continue to receive. 3️⃣ Customer Segmentation Tailor your approach: ➡️ Identify Segments: Classify customers by purchase habits and price sensitivity. ➡️ Customized Strategies: Apply different adjustments. Loyal customers might see a smaller increase or receive added perks. ➡️ Offer Alternatives: Provide options like bundles or loyalty programs to add value. 4️⃣ Train Your Team Your employees bridge strategy and customer experience: ➡️ Internal Briefings: Explain the rationale so they can convey it confidently. ➡️ Provide Tools: Supply scripts and FAQs to handle inquiries consistently. ➡️ Encourage Feedback: Let staff share customer reactions to inform future strategies. 5️⃣ Monitor and Adapt Stay agile post-implementation: ➡️ Track Data: Watch sales and retention rates closely. ➡️ Gather Feedback: Seek opinions through surveys and direct conversations. ➡️ Be Flexible: If negative impacts arise, adjust your strategy—perhaps with promotions or reevaluated pricing. Don't let your price increase strategy be an accident waiting to happen. With careful planning and execution, you can strengthen your business without risking customer relationships. Let's carry our "eggs" safely into the New Year! 🥳 How are you adjusting your pricing strategy for 2025? Share your insights below! How 2025 will be different to previous years? ----- 📢 Curious about navigating the dynamic world of pricing and staying ahead of the curve? Hit the 🔔 icon and follow me to receive timely updates on pricing strategies, industry trends, and more!

I sold my first clients for $500. One of my last clients paid $21,000+. Here’s how to consistently raise your prices over time: 1. Flood your pipeline. If you only have 2–3 leads, you’ll undercharge out of scarcity. With 20+ leads, you pick the clients who value you most. 2. Land & expand. A $500 project can turn into $16K+ if you deliver quick wins and upsell bigger retainers (real example). 3. Stop trading hours for dollars. Don’t price based on how long it takes you. Price based on the value you create. 4. Solve richer people problems. Dog walkers vs. Wall Street firms. Same effort, 100x pricing difference. 5. Sell outcomes, not features. Clients don’t care about APIs or workflows. They care about ROI and outcomes. 6. Productize or die. If every delivery is custom, you’ll cap out fast. Standardize into repeatable offers so you can scale. If you’re struggling to raise your prices, it’s not just about tweaking the numbers. It’s about shifting how you think about clients, the value you provide, and leverage. PS - if you want my complete guide to pricing automation services, comment “pricing” and I’ll send it to you.

61% of SaaS teams admit they fear raising prices: They imagine churn graphs and angry users. But fear doesn’t protect revenue - it caps it. When Tweet Hunter went from $9 → $49/month, churn dropped. Same product. 5x more revenue per customer. Because the moment they raised prices, they changed who the product spoke to. Early on, you’ll take any customer that walks in. You need feedback. You need proof of product-market fit. But once you see who gets the most value, pricing becomes your filter. Raise prices, and you naturally attract higher-fit customers. You’ll serve fewer, better ones and retention improves. 3 signals you’re underpriced: - Too many "tryers," not enough "deciders." - Your best customers call you cheap. - Expansion revenue is flat. When two of these show up, your price isn’t protecting your value. It’s undermining it. Because pricing isn’t just math. It’s confidence, disguised as positioning. And most teams don’t lose customers when they raise prices, they lose fear. ♻️Repost if this resonates. Source: tibo_maker (X)

Your pricing is a positioning decision, not a revenue one. Here's what I mean. Most people set their price by working backwards from the money. How much do I need to make? How many clients can I take? Divide one by the other. There's the price. That's thinking about price as a revenue lever. And it misses the more important truth. Your price is a positioning decision. Because the number you charge tells the market how to perceive you before they've experienced anything you do. A low price says: entry-level, accessible, experimental, safe to try. A high price says: premium, serious, for people who have decided. Same expertise. Same offer. Completely different positioning, based purely on the number attached to it. I learned this when I raised my prices and consolidated my offers. The higher price didn't just change my revenue. It changed who showed up. The clients became more committed. More decided. Better fit. Better results. Better testimonials. Not because I found better people. Because the price itself filtered for them. Here's what this means: → Price is a signal, not just a sum. It positions you before a single conversation happens. → A higher price attracts more committed buyers. Low prices often attract people still deciding whether they're serious. → When you set your price, you're not just deciding what you earn. You're deciding who you attract and how you're perceived. So don't set your price by working backwards from the money you need. Set it by deciding how you want to be positioned, and who you want to attract. The revenue follows the positioning. Not the other way around. __ Have you ever changed your price and watched it change the type of client you attracted? If that resonated with you, follow me, Danielle Canty, for more content on how to build and scale your business more sustainably with fewer but better, and higher-paying clients. And for more strategy & tactics, subscribe to my free weekly newsletter (link in my profile → Danielle Canty)