The tactic: Raise prices on new business first, give existing clients a dated notice, and hold the number when someone pushes back.
Most independent operators are underpriced, and they know it. The reason they don’t fix it is straightforward: the fear of hearing no from someone who currently pays them. So the rate stays where it was in 2022 while insurance, software, fuel, and materials all moved.
A price increase is not a confrontation. It’s a scheduled business event, and it goes much better when you treat it like one.
Why staging works
Raising rates on everyone at once, with no notice, creates a single high-stakes moment where every client evaluates you simultaneously. Staging spreads the risk out. New clients quote at the new rate immediately, which means you start collecting more money this week with zero relationship risk. Existing clients get a notice period, which converts a shock into a plan.
By the time your current roster reaches the new number, you’ve already proven to yourself that people will pay it, because new clients have been paying it for two months.
How to run it
Set the number before you talk to anyone. Look at what you charged twelve months ago, what your costs have done since, and what the work is actually worth to the client. Then pick the figure. Ten to fifteen percent is a normal annual adjustment and rarely triggers a fight. If you’ve been flat for three years, you’re catching up, and a larger jump is defensible.
Quote new business at the new rate starting immediately. No announcement. No explanation. It’s just your price.
Give existing clients a dated notice. Thirty to sixty days is fair. Keep the message short:
Starting September 1, my rate for this work moves to $X. This is my first adjustment since 2023 and it reflects rising costs across the board. Everything about how we work together stays the same. Happy to talk it through anytime.
That’s the whole email. No apology, no five paragraphs justifying yourself. Length reads as insecurity.
Decide your exceptions in advance. Maybe your two longest-running clients get an extra quarter at the old rate. Fine, but decide that before the conversations start, so you’re not improvising discounts under pressure.
Hold the number. Some clients will push. A few will leave. That’s the expected outcome, not the failure case. If you raise rates fifteen percent and lose ten percent of your clients, you’re making more money for less work.
The mistake most people make
Negotiating against yourself. You send the notice, nobody replies for two days, and you follow up offering a discount nobody asked for. Send the notice and wait. Silence usually means acceptance.
Do this today
Pick the number. Just the number, nothing else. Write it on a sticky note. The next quote you send goes out at that rate.
Article contributed by
The AFE Editorial Team