Freelancers conflicted about increasing fees for long-time clients
DEAR READERS: I’ve had several conversations with freelance professionals who are conflicted about asking for an increase in the fees they charge their regular, long-time clients. They don’t want to rock the boat, especially if the client is one who accounts for a large percentage of their income — but they’ve been charging the same fee for several years and feel they deserve a bump up.
“Communicating an increase in fees to a regular, long-time client can be a sensitive matter,” acknowledges Sylwia Smietanko, an HR specialist and recruiter at Passport
Photo Online, who notes that everyone wants to maintain a positive relationship while also ensuring financial viability.
Fortunately, there are a few steps freelancers and consultants can take to achieve both goals.
Evaluate your current rates compared to industry standards and market rates for similar services. This advice comes from Emily Bennett, HR manager at Office Topics, who says it is the best way to help determine if you are charging a fair price.
Assess your value. “Be prepared to discuss your value proposition — the value you bring and the impact your work has on your clients’ businesses,” Bennett suggests. “If you feel that you are providing valuable services and contributing to your clients’ success, you may have a stronger case for raising your rates.”
Smietanko agrees. “Remind the client of the long-standing relationship you have had and the value they have received from your services,” she says. “It’s good to acknowledge the client’s loyalty too.”
Explain your reasoning. Transparency is key, Smietanko stresses. “Be transparent about why you are increasing the fees. Is it due to rising costs? Changes in the market? Or increased demand for your services?” she asks. “Providing a clear explanation can help the client understand and accept the change.”