How I raised my rates by 20% by proactively asking for feedback and listening to my customers' 2025 goals

Do you fear telling your clients you are going to raise rates? I sure as hell do.

It keeps me up at night. But I just had the smoothest rate-raising conversation of my career and I managed to do it by asking for feedback and what my customer’s 2025 goals were. This last year I managed to start treating my business like a business. This means standardizing a lot of things like my proposal process. But what do you do after you have an ongoing relationship with your clients? I have quarterly/yearly service agreements with my clients and I love that consistent revenue, not having to worry about where my next payday is coming from. The only issue with that is after a few years how do I introduce an increase in rates? Once you get a deal there is almost an “I’m afraid to change anything or I might lose the contract” mindset. I feel it every time I need to raise rates.

My solution: I created a “Schematical Advisory Quarterly/Yearly Planning” meeting along with a template outline I use to take notes and guide the meeting. I crafted it in a very specific order to guide the conversation in one of two ways.

First I start by sharing why in the world I would be asking bigger picture questions, this should help understand why they would share the bigger picture details of their business with a meir service provider like me.

Second I start by sharing where my business is and where it is going to get them to relax. I aired my dirty laundry so airing theirs won’t be such a big deal. I also aim to be as transparent as possible with my customers(or in general, therefore this writeup).

Third: I asked them to let me know how this past year has been for them. Up, downs, revenue, challenges, etc.

Fourth: I asked them what their goals are and where they want to go next year.

Fifth: I asked them how I can help them achieve their goals. How can I improve my offerings to them? And most importantly “What is the biggest value I bring to your business?”. This is key. It “primes” them mentally to be thinking about what a good ROI they got by doing business with me. This portion also asks if they are planning on anything that would require an increase in my services in the near future. It never hurts to remind your customer of your higher tier offerings just in case.

Now here is where there are three possible outcomes:

Outcome A(The bad outcome): They say they don’t need me as much next year. Great, let's rip that bandage off now. I would rather know about it now so I don’t go buying that boat I have been eyeing up and then finding out that they are ditching me after I signed the check.

Outcome B(The learning outcome): They are not satisfied with my work and say I have lots to improve on. Ouch, but at least now I know what to improve on.

Outcome C(The good outcome): They say you're doing great, they see the value in your work, and they say they want to continue.

The questions in earlier sections remind them of how much they need to do this year. The questions in the fifth section remind them of just how much value you have to offer. Now that your value is top of mind it is time to show them the proposal for next year’s engagement which happens to have the 20% rate increase at the level they have opted for(Slightly higher in other packages).

I also managed to mention that I have a referral program should they think of anyone that needs my services in their peer group or network, and I don’t chicken out on mentioning that because it is literally in writing in this doc that I am currently screen sharing and will send them a copy after the call.

So I shared the proposal with them while on the video call(I never just send over a proposal, I always walk them through it so I can read the room and feel out objections instantly). After reading off the numbers and confirming the details I said “I can just send you the proposal if you want to think about it… otherwise I can send it over with an invoice right now so we can keep going”. My client’s response: “Just send the invoice”. Have any words ever sounded so sweet?

Why do I tell you all this? Clearly, to inflate my already gigantic ego I have a super secret meeting outline template that I am going to keep all to myself… just kidding. Here is my Schematical Advisory Quarterly/Yearly Planning Template, feel free to borrow from it as much as you like(Probably not my name, or the current state of affairs for my business).

If you have any other ideas of how/when to have the rate raise conversation I would love to hear the feedback. ~Cheers!