Obviously, the main benefit of raising your prices is that you get paid more per client. Over time, as you gain more skill and experience, it makes perfect sense to consider raising your freelancing rates. No client expects you to keep your rates the same forever. As inflation sends prices higher, those effects also impact services. If you want to improve your income effectively, at some point you will need to raise your rates as a freelancer.
Setting freelance rates is a complicated business. It is even tougher to raise rates. This is why it can help to raise them on new clients and projects first. You may feel less rude when doing it with a new client, than someone you have been working with for years. Starting out with new clients and projects can give you a pretty good idea of what others are willing to pay for your expertise, and it can help you tweak your offerings to find out what value-added items clients are willing to pay for.
Yes, you may lose clients
But chances are, if your rate increase is reasonable, you will be saying goodbye to your cheapest clients. You know, the ones who are the bad payers, the hardest negotiators, and the clients who do not value your worth. These are probably also the most time-consuming clients. This also means you will be able to use that extra time with the clients you care more about. So your current clients will be getting even more value from you. This is also great for your stress and anxiety level; you are not answering 100 emails from a hundred clients, you are spending the same time answering 30 emails from 5 bigger clients.
So how do you raise your prices?
We advise a two pronged approach. First with new clients, simply quote your new higher rate (a slight increase from your current rate). If you currently charge £45/hour then quote £50/hour for any new project that comes your way. Every 6-12months increase your rate as the new projects come in. It’s not unreasonable to expect a £10-£20 increase in the rate you charge over a 2 year timeframe.
Secondly, for existing clients. Simply shoot them an email saying that any further projects will be at your new rate of XX/hour. If the change is small (£5/hour for example) your clients wont even blink at this. Again, you can increase your rates, letting your existing clients know every 6-12months.
Earn what you are worth
It’s very important to earn what you are worth, so don’t be afraid of raising your prices. The amount of leads you are getting helps give you the confidence to raise your rates as you wont be overly concerned about a few clients saying goodbye. If you need help getting leads, why not check out our services in which we find project leads tailored specifically for you.