How to raise your agency rates (without losing your clients)
A step-by-step approach to raising your agency's rates - when to do it, how much, how to tell existing clients, and a word-for-word price-increase email you can adapt.
Part of the agency pricing guide
You're probably underpriced - and dreading the fix
Most agency owners know their rates are too low and put off doing anything about it for one reason: fear that raising prices will send clients running. So they keep absorbing rising costs, taking on more scope, and watching margin erode - a slow problem that feels safer than the sharp discomfort of a price conversation.
Here's what actually happens when well-run agencies raise prices deliberately: the great clients barely flinch, a few negotiate, and occasionally a low-margin client leaves - which frees capacity for better-paying work. The price was rarely the reason they hired you, and it's rarely the reason they'd leave.
When to raise your rates
There's no perfect moment, but these are clear signals it's overdue:
- You're at or near capacity and turning work away.
- Your costs have risen but your rates haven't in over a year.
- Your effective hourly rate on real jobs is below target once you account for scope creep and non-billable time.
- New clients say yes too easily, with no pushback on price.
- You're more experienced and deliver better outcomes than when you set the current rate.
If two or more are true, you're leaving money on the table.
How much, and on whom first
Raise on new clients first. It's the lowest-risk move: change your rate card today and the next proposal goes out at the new number, with zero awkward conversations. New prospects have no anchor to your old price.
For existing clients, move more gently. A 10-20% increase at a natural review point is usually absorbed without drama; a sudden doubling is not. Tie the increase to a moment - an annual review, a renewal, the start of a new project, or a genuine expansion of value - so it reads as normal business, not an out-of-the-blue grab.
Before you pick a number, run your costs and target margin through the agency pricing calculator so the new rate is grounded in maths, not a guess.
How to tell existing clients
Keep it short, confident, and free of apology. The structure that works: give notice, state the new rate plainly, anchor it to value, and leave no sense that it's up for a long negotiation. Don't over-explain - a paragraph of justification reads as a lack of conviction.
Subject: A note on our rates for [next quarter/year]
Hi [name],
A quick heads-up: from [date], our rate for [service] will move to
[new rate]. This is our first increase since [date], and it reflects
the [results / scope / level of support] we now deliver for you.
Everything about how we work together stays the same - I just wanted
to give you plenty of notice. Happy to talk it through if useful.
Thanks for being a great client to work with.
[Your name]Send it from a person, give 30-60 days' notice, and resist the urge to offer a discount before anyone's even pushed back.
Make the increase stick
A price rise lands better when it's paired with visible value. Two things help: package your work so clients see what they're getting (a productized service is easier to re-price than a vague monthly arrangement), and report consistently so the value is obvious before the invoice arrives. When a client can see the outcomes you deliver, a fair increase is an easy yes.
Raising rates is one lever in pricing your agency well. For the full picture - models, packaging, and setting a defensible rate - see the agency pricing guide.
Frequently asked questions
How do I raise my agency's prices without losing clients?
Raise on new clients first (no awkward conversations), then move existing clients up gently - around 10-20% at a natural review point, tied to value, with 30-60 days' notice. Your best clients rarely leave over a fair, well-communicated increase.
How much should I increase my agency rates?
For existing clients, 10-20% at a review point is usually absorbed comfortably; for new clients you can move further since they have no anchor to your old price. Ground the number in your costs and target margin rather than guessing.
When should an agency raise its rates?
When you're near capacity, your costs have risen but rates haven't in over a year, your effective hourly rate is below target, or new clients accept your price with no pushback. Two or more of these means it's overdue.
How do I tell clients about a price increase?
Send a short, confident note from a person with 30-60 days' notice: state the new rate plainly, anchor it to the value you deliver, and don't over-justify or pre-emptively discount.