Sales and customers
How to tell a client you are raising your prices without losing them
Announce a price increase early and in person, rather than sending a new price list without a word. Say how much and from when, give one reason, and do not apologize for running a business. If you want to offer something, make it a choice, not a concession under pressure.
How to handle this conversation
Specifics in the first minute
“From March 1 my hourly rate goes up from 45 to 50 euros. I wanted to tell you early, before you plan your budget.”
One reason is enough
For example: “I have not changed my rates in two years, and my costs and the scope of the work have grown.” A long list of reasons sounds like asking for permission.
Offer a choice instead of a discount
“If we book the whole quarter before March, the current rate stays until the end of June.” The client gets a decision, you get predictability.
Let the first reaction pass
Surprise and “that is a lot” are normal, not a refusal. Answer calmly: “I understand it is a change. What would help you plan for it?”
I am telling a client my prices are going up
- Difficulty
- Medium
- Duration
- 6-10 minutes
The situation
You have worked with a regular client for three years, and in that time your rates have not changed. Your costs have clearly gone up and the scope of work has grown. From next quarter you want to raise your rate by more than ten percent. You call to tell them personally.
Who you talk to
Regular client, owner of a small business
Values working with you but is caught off guard. Says everything is getting more expensive for him too, asks whether you could keep the old price and mentions knowing someone cheaper.
The counterpart also has private goals and information that are never shown upfront. You discover them only through the conversation, the same way you would in real life.
What makes it hard
- The client reacts with surprise that is easy to mistake for a refusal.
- The request to keep the old price leans on a long relationship.
- The mention of a cheaper supplier tempts you to back down immediately.
Your goals
- State the new rate and date in the first minute, without apologizing
- Hold the increase despite the request to keep the old price
- End with agreement or a clear date for the client’s answer
What the report looks at
- Whether the amount and date came early and plainly
- Whether the reason was brief, without justifying yourself
- How you handled surprise and the comparison with a cheaper supplier
- Whether any offer was a choice rather than a retreat