When to Raise Your Rates, And When to Walk Away
Don’t leave money on the table because you’re afraid to ask.
I didn’t always know how to raise my rates.
I used to think it was a math problem.
It wasn’t.
It was a fear problem.
Fear of being told no.
Fear of losing the client.
Fear of looking “greedy.”
Which is ridiculous, because when you’re running a service business, the price you charge is the oxygen in the room. If it’s too low, you choke.
But here’s the truth most of us never admit:
Half the time, we don’t actually need to convince a client to pay more.
We just need to convince ourselves we’re worth it.
The first time I raised my rates… I botched it.
I still remember the email.
I’d been doing graphic design work for a client for almost a year. They loved me. I knew it. They knew it.
I decided I was going to raise my rate from $40/hour to $60/hour.
So I did what every insecure freelancer does:
I wrote a three-paragraph justification explaining how “costs have gone up,” how “my time is worth more,” and how “I hope this doesn’t cause any inconvenience.”
(Translation: Please still like me.)
The client wrote back in two sentences:
“Thanks for letting us know. $60/hour works.”
That was it.
No drama, negotiation, or pushback.
Which left me wondering… how many months had I been undercharging simply because I was too scared to ask?
Why raising your rates feels so hard
It’s not just about the money.
When you raise your rates, you’re forcing yourself to answer some uncomfortable questions:
Am I actually good enough to charge more?
What if they say no and I lose the income I rely on?
What if they say yes and then expect more from me?
And then there’s the people-pleasing tax we all pay.
That little voice that says: “Don’t rock the boat. Just be grateful they hired you at all.”
I’m not saying you should hike your rates every six months for no reason.
But I am saying that if your rate hasn’t changed in two years, your profit margins are shrinking whether you realize it or not.
Inflation is real.
Your skills are growing.
Your experience is worth more now than it was when you started.
The 5 signs it’s time to raise your rates
Let’s take the guesswork out of it.
If any of these sound like you, it’s probably time.
1. You’re fully booked for months in advance
If you have a waitlist, you have leverage.
That’s your market telling you your pricing is too low.
2. Your “quick” projects keep getting bigger
What started as a $500 project now always turns into a $1,500 scope… but you’re still charging $500.
3. You resent the work you’re doing
If you’re groaning every time a certain client’s name pops up, that’s your body telling you something’s off.
4. You’ve added skills or services
If you’ve learned new tools, developed faster processes, or expanded your offering, your rate should reflect that.
5. Your rates are way below industry standard
Do a quick audit. Go check what others in your industry are charging. 30% to 50% more for the same work? Time to do something about yours.
Feeling stuck undercharging for your expertise? The Productized Kit gives you the tools to confidently raise your rates and build a business that works for you, without sacrificing your time or energy.
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How to raise your rates without burning bridges
This is where most service providers panic.
They think raising rates means risking every relationship they’ve built.
But here’s the truth:
The right clients won’t be shocked when you raise your rates.
Why?
Because they already see the value you bring.
But I know, if you are like me making friends with every client you have, you don’t want to burn bridges.
Here’s my way of raising rates without drama:
Give plenty of notice — 30–60 days is respectful, especially for long-term clients.
Be direct and confident — skip the apology tour; your rate change is a business decision.
Be clear with the value — clients care about what they get, not why your rent went up.
Offer a loyalty option — lock in the old rate for a limited time if they pre-pay for X months.
Example script:
“Starting March 1, my project rate will be increasing from $X to $Y to reflect the results I’ve been able to deliver. If you’d like to lock in the current rate for the next three months, I’m happy to invoice you in advance.”
Notice there’s no groveling.
No “I hope this is okay.”
Just clear, calm boundaries.
When NOT to raise your rates
Not every moment is the right moment.
Some situations call for holding steady, or even walking away entirely.
Don’t raise your rates when:
You’re in the middle of a high-stakes project with no contract flexibility.
You’re still learning the basics of your craft and have no track record.
You’re doing it purely out of desperation because one big bill just landed in your inbox.
Raising your rates should be a strategic move, not an emotional one.
The moments to walk away instead
Sometimes the real power move isn’t charging more.
It’s not looking desparate.
Here’s when that’s the smarter play:
1. The client treats you like a vending machine
They press the button, you produce the thing. No collaboration, no respect, no room for your expertise.
2. They constantly haggle
If every invoice turns into a negotiation, you’re not in a business relationship — you’re in a hostage situation.
3. The scope creep is endless
If they can’t respect boundaries now, they won’t suddenly learn after you raise your rates.
4. The work no longer aligns with your goals
Sometimes you outgrow a client. And that’s okay.
Walking away isn’t failure, it’s making space for clients who value you.
What happened when I walked away from a $30K/year client
A few years ago, I had a retainer client paying me $2,500/month.
On paper, it looked great. Steady income. Predictable workload.
But behind the scenes?
Every month was a battle.
Endless “urgent” requests.
Weekend emails.
Random phone calls in the middle of family dinners.
I finally raised my rates, by just 20%.
They said no.
I said if it doesn’t work for them, that’s fine.
And I recommended others from my network to help them.
Within 60 days, I had replaced that $30K/year with two smaller clients who paid my new rate and respected my boundaries.
That’s when it clicked:
Sometimes the money you lose makes room for the money you deserve.
The emotional side no one talks about
We talk about pricing like it’s a spreadsheet problem.
But it’s also a self-worth problem.
If you believe your work is “just” deliverables, just designs, just copy, just code, you’ll always undervalue yourself.
Clients don’t pay for the thing.
They pay for:
The years of skill-building it took you to create it
The problems you solve for them
The headaches you prevent
The money you help them make or save
That’s what your rate reflects.
How to know you’re ready, without overthinking it
There’s no perfect timing formula.
But here’s the simple test I use:
If you’d be genuinely annoyed to get a new client at your current rate, you’re ready to raise it.
That’s it.
Final thoughts
Raising your rates isn’t about greed.
It’s about alignment.
Alignment with your skills.
Alignment with your goals.
Alignment with the kind of clients you actually want to work with.
And sometimes, the best move you can make for your business isn’t adding 20% to your invoice.
It’s walking away from work that’s draining you dry.
Here’s the thing:
The clients who value you will stay.
The ones who don’t will leave.
And both outcomes are good for you.
Because you’re not just building a business.
You’re building a life.
You don’t have to settle for clients who undervalue your worth or work that drains you. The Productized Kit helps you scale your business sustainably, so you can focus on the clients and projects that truly align with your goals.
👉 Take the first step toward predictable income and a business you love. Get the Productized Kit now.