This freelance rate increase letter is one of dozens of techniques, tricks, and methods we go over in Freelance Newbie. (We also discuss how to handle clients who aren’t so happy about your pricing scheme.) Check it out today to start finding clients and making money!
As a small business owner, I occasionally find myself needing to raise my prices. For example, when I get a bigger and better insurance policy, or need to upgrade my Internet services, or buy another monitor…
As a citizen who’s subject to inflation and increased taxes, I also occasionally find myself needing to raise my prices. When the county sends me my annual property tax statement (never cheaper than last year’s), when the price of groceries goes up, when Uncle Sam takes a bigger chunk out of my paycheck…
As a freelancer who provides exemplary service, here too I occasionally find myself needing to raise my prices. With an expanded and more efficiently-delivered skillset than I had the year prior, with a contract employee helping me with daily admin tasks, with a fresh new website that streamlines customer service…
And as a software developer — you guessed it — I occasionally find myself needing to raise my prices. From time to time I miss the mark on where my pricing needs to be, whether it’s my rate for an ecommerce app or an hourly consultation, or whatever else.
If you’re a software developer, designer, marketer, or any other person who finds themselves needing to raise their freelance rates, you can use my email template below.
This simple, effective freelance rate increase letter is clean, concise, and professional. As mentioned, while I’m a freelance software developer, ANYBODY with ANY type of freelance business can use it to great effect:
(note: assume email is sent June 1, 2019)
Hi Cortana the Client,
I wanted to take a minute to thank you for your business over the past five months. I’ve really enjoyed working with you and it’s been very exciting seeing your business grow and succeed!
Currently, I’ve been charging $40 per dev hour; however, as of August 1st, 2019, my price per dev hour will increase to $55. This price change will let me offer a more valuable and personalized service which, as a result, will help you achieve greater results for your business.
If you’re anticipating any upcoming work, you can lock in the current rate now. However, any new hourly work booked on or after August 1st will be charged at my new rate.
I appreciate you understanding and I look forward to continuing our work together! If you have any questions, please call or email me.
Clear communication? ✅
Ample time for client to voice concerns? ✅
Offers client an incentive to send more work your way? ✅
See how simple that is?
I use this template when I raise my rates, although sometimes I’ll tweak it further to communicate that ALL my rates are being changed (to include package pricing and other pricing models other than hourly). I also make sure to give my clients plenty of notice before the new rates go into effect, while encouraging the client to send work my way before the new rate increase (which also increases my freelance revenue).
A freelance rate increase letter is never fun to send, but if you phrase it the right way, it can make the transition period a whole lot easier for your clients. Happy freelancing!