How to Raise Your Rates Without Losing Your Clients

As freelancers in Africa, it is impossible to remain with the same rates for your entire existence. Soon you’d have to raise your rates for several reasons. The question here is, how do you raise rates without scaring customers away?

In this post, we will attempt to answer this question. To do this, we have provided a few methods to achieve this goal. Let’s dive in.

How to raise your rates without losing clients

Do your homework

How would you feel if a freelancer you worked with just increased their rates by 100 percent? Shocked and most likely ready to turn to the competition with lower prices. This is exactly how your clients feel if you dis the same.

As such, you need to do your homework first before reviewing your prices. One way to do this is by researching how much your competition charges for similar services. You can check online or call in as a mystery shopper to get their pricelist. Researching the competition helps you set your new prices.

Draw up a workable plan

Before you review your rates, you need a workable plan. To draw this plan you have to answer several questions. Examples include how much are you going to charge? How much notice will you give your clients?

You also need to figure out how you want to tell your customers about the price review. When you have all of this in place then you can put together a workable plan. One way to effect price changes is to inform your clients towards the end of the year. This way, they are ready to align with the press changes at the beginning of the new year.

Doing this gives your clients ample time to prepare for your new rates. It is far better to break the news to your clients in person. This means that you have to send personalized emails or make calls as a freelancer.

Ooze value before reviewing your rates

Don’t forget that it is absurd to raise your rates out of the Blues. Instead, gradually build your value. Show your clients why they should pay more for your services before you even tell them about a price increase.

We suggest that you begin to deliver more value at least six months before informing your clients of the new prices. This is far more difficult than discussing new prices with your clients. Do you know why?

It’s simple, customers will ask you why you are reviewing your rates. If your value has increased recently, then it is easy to answer the question. You cannot answer this question in theory, your clients want practicality.

Be accurate with your price increase

This is where African freelancers may miss it. When reviewing your rates, you must be as accurate as possible. Your clients will carry out industry research once you break the news. They will compare your new rates to what is already obtainable from your clients.

If your prices are too low, you’ll probably be going through the process again in a short while. On the other hand, when they are too low, you risk losing your clients. See why freelancers in Africa must be accurate with fixing prices?

Take your time to study your production process. How much does it cost you to deliver your services? Now set up your prices in line with what is obtainable on the market. Whatever the case is, ensure that you don’t exceed a 20 percent increase at a time.

What to do when clients refuse your price reviews

Let’s not deceive ourselves, clients will not always accept price reviews. Some clients are so stubborn that they’ll refuse no matter how much value you bring to the table. What do you do in this case? Here are a few tips:

Compromise

Many African Freelancers don’t like this word. It’s a shame you cannot run a business without dealing with compromise frequently.

When clients don’t agree with your new rates, you may need to compromise. This means that you have to drop your prices even though you aren’t reverting to the old price. A good way to do this is to find a middle point between you and your clients.

Flattery

This is another word many freelancers in Africa don’t like too well. If only you knew the power of flattery. You can play on the emotions of your clients by telling them how much you appreciate their patronage.

Another thing to say here is “you are too important to let go, can we discuss the options available?” This may just help you twist the arm of that stubborn client.

Perform beyond expectation

You should employ this method for a few weeks to implementing your new rates. It works like magic every time. This method also works when clients are stubborn after implementation.

The idea is to show them what they will be missing out on if they stop patronizing you. When you over-perform, you prove how indispensable you are to the client. Hence, they’ll have more reasons why they have to stick with you.

Bluff

This is about the oldest trick in the book for African Freelancers. Just so you know, this method puts you on the fence and you can fall on either side. In essence, be ready to lose the customer if they call your bluff.

The idea is to state clearly but politely why the working relationship has to end. Explain to them why you have to stop working with them and your regrets about the decision. The uncertainty of this method makes many freelancers avoid it like a plague.

Wrapping up

Even though we all dread telling clients about reviewed prices, it is inevitable. We have discussed some methods to help you achieve success when you review your rates. If your clients are proving stubborn, the tips above should help.

What other methods do you think will work? Drop them in the comments section below.