Raising Your Rates: How to Confidently Increase Prices and Keep Your Best Clients
Keith Kipkemboi
Raising Your Rates: How to Confidently Increase Prices and Keep Your Best Clients
Signs It's Time for a Price Increase
Your Schedule is Constantly Full
You've Acquired New Skills or Specializations
Market Rates Have Shifted
You've Delivered Measurable Results for Clients
How to Strategically Calculate Your New Rates
Researching the Market
Value-Based Pricing vs. Hourly Rates
Factoring in Your Business Expenses and Goals
Communicating the Price Increase to Current Clients
Give Ample Notice
Be Confident and Direct
Crafting the Perfect Email (with Template)
Focus on the Continued Value You Provide
Handling Pushback and Keeping Your Best Clients
Listen to Their Concerns
Negotiating a Middle Ground
Knowing When to Part Ways
Conclusion
References
Raising Your Rates: How to Confidently Increase Prices and Keep Your Best Clients
As a virtual assistant, your skills and experience grow over time, and your pricing should reflect that. This article will guide you through the process of raising your rates with confidence. We'll cover how to know it's time for an increase, how to communicate it to your clients, and how to handle the conversation to ensure you keep your best clients.
A key part of growing your business is knowing your worth, and sometimes that growth means considering a bigger step, like scaling from a solo VA to an agency. To attract the best clients, you need a professional presence on platforms where businesses go to hire a virtual assistant.
Let's dive into the practical steps you can take to increase your rates without losing the clients you've worked hard to build relationships with.
Signs It's Time for a Price Increase
Recognizing the right moment to raise your rates is crucial. Many VAs struggle with this decision, often waiting too long and undervaluing their services. Here are the key indicators that signal you're ready for a rate increase.
Your Schedule is Constantly Full
Think about your calendar for the past few months. Are you booked solid? Do you find yourself turning down new projects because you simply don't have the time? This is actually a good problem to have.
When demand for your services exceeds your supply at your current price point, basic economics tells us it's time to adjust. If you're constantly saying no to potential clients, you're leaving money on the table. Plus, being overbooked can lead to burnout, which isn't sustainable for your business.
Consider this: if you raised your rates by 20%, you could potentially work with fewer clients while maintaining or even increasing your income. This gives you more time to focus on delivering exceptional results for each client.
You've Acquired New Skills or Specializations
Your value as a VA isn't static. Every new skill you learn, every certification you complete, and every specialized knowledge area you develop adds to your worth in the marketplace.
Maybe you've recently mastered a new project management tool that saves your clients hours each week. Perhaps you've completed a social media marketing certification that allows you to offer more strategic services. Or you might have developed expertise in a specific industry that makes you invaluable to businesses in that niche.
These improvements justify higher rates. Clients aren't just paying for your time; they're paying for your expertise and the results you can deliver. When you can do more for your clients, you should charge accordingly.
Market Rates Have Shifted
The virtual assistant industry is dynamic, with rates constantly evolving based on demand, economic conditions, and the increasing recognition of VAs as essential business partners. If you haven't researched current market rates in the past year, you might be surprised at what you find.
Take time to research what other VAs with similar experience and skill sets are charging. Look at job boards, VA forums, and industry reports. If your rates are significantly below the average, you're undervaluing yourself. Remember, charging too little can actually hurt your credibility with potential clients who may question the quality of your services.
You've Delivered Measurable Results for Clients
This is perhaps the strongest justification for a rate increase. When you can show concrete results from your work, you shift the conversation from cost to value.
Have you helped a client increase their email open rates by 40%? Did you implement a system that saved them 10 hours per week? Maybe you managed a product launch that exceeded sales targets by 25%. These achievements prove your worth goes far beyond basic administrative tasks.
Start tracking these wins now if you haven't already. Keep a record of the specific results you've achieved for each client. This data becomes powerful ammunition when it's time to discuss rate increases.
How to Strategically Calculate Your New Rates
Moving beyond just picking a number that sounds good, let's explore how to calculate rates that truly reflect your value and support your business goals.
Researching the Market
Before setting new rates, you need to understand the current landscape. Start by looking at multiple sources:
Industry reports and surveys often provide average rates by experience level and specialization. Organizations like the International Virtual Assistants Association regularly publish this data.
Job boards and freelance platforms show what clients are willing to pay. Look at both the low and high ends of the spectrum to understand the full range.
Networking with other VAs can provide real-world insights. Join VA groups and forums where professionals openly discuss pricing. You'll often find that successful VAs charge more than you might expect.
Remember to factor in your geographic location (even for remote work), your specific niche, and your unique value proposition. A VA specializing in medical practices will typically charge differently than one focused on creative agencies.
Value-Based Pricing vs. Hourly Rates
While many VAs start with hourly pricing, consider whether it's time to shift to value-based pricing for some or all of your services.
Hourly pricing is straightforward and familiar to most clients. It works well for ongoing support and tasks that vary in scope. However, it can limit your earning potential and doesn't reward efficiency.
Value-based pricing focuses on the results you deliver rather than the time you spend. This might mean charging a flat monthly retainer for specific outcomes or project-based fees for defined deliverables.
For example, instead of charging $50 per hour for social media management, you might charge $2,000 per month to maintain and grow a client's social media presence. This shifts the focus from hours worked to results achieved.
Many successful VAs use a hybrid approach, offering hourly rates for certain tasks and value-based pricing for specialized services. This gives you flexibility while maximizing your earning potential.
Factoring in Your Business Expenses and Goals
Your rates need to cover more than just your desired salary. Consider all the costs of running your business:
Direct business expenses include software subscriptions, internet, phone, computer equipment, professional development, and marketing costs. Add these up annually and divide by your billable hours.
Taxes and benefits are often overlooked by new VAs. As a self-employed professional, you're responsible for self-employment tax, health insurance, retirement savings, and paid time off. Factor in at least 30-40% above your desired take-home pay.
Future business goals should influence your pricing too. Are you planning to hire subcontractors? Invest in advanced training? Build a financial cushion? Your rates should support these ambitions.
Profit margin is essential for business sustainability. After covering all expenses and your salary, aim for at least a 10-20% profit margin. This provides a buffer for unexpected costs and funds for growth.
Communicating the Price Increase to Current Clients
This is often the most nerve-wracking part of raising rates. But with the right approach, you can navigate this conversation professionally and maintain strong client relationships.
Give Ample Notice
Respect your clients' budgeting processes by providing adequate notice. The standard is 30-60 days, though long-term clients deserve even more consideration.
For monthly retainer clients, give at least 60 days' notice. This allows them to adjust their budgets or discuss the change with decision-makers.
For project-based work, implement the new rates for future projects rather than changing mid-project. Honor your existing agreements while being clear about future pricing.
For hourly clients, 30 days is typically sufficient, but consider the client's billing cycle. If they budget quarterly, align your increase with their planning timeline.
The key is showing respect for their business operations while being firm about your own needs. This professional approach strengthens rather than weakens your relationship.
Be Confident and Direct
Your mindset matters. If you approach the conversation apologetically or uncertainly, clients may push back harder. Remember, you're not asking for a favor; you're adjusting your business pricing to reflect your value.
Use clear, professional language without over-explaining. You don't need to justify every dollar or apologize for running a profitable business.
Focus on facts, not feelings. State the new rate, the effective date, and any relevant context without emotional language.
Avoid negotiation language in your initial communication. Present the increase as a business decision, not a starting point for discussion.
Your confidence communicates professionalism and helps clients understand this is a standard business practice, not a personal issue.
Crafting the Perfect Email (with Template)
A well-crafted email sets the right tone for this important conversation. Here's a template you can adapt:
Subject: Important Update: Service Rate Adjustment Effective [Date]
Dear [Client Name],
I hope this message finds you well. I'm writing to inform you of an upcoming adjustment to my service rates.
Over the past [time period], I've invested significantly in expanding my skills and capabilities to better serve my clients. This includes [brief mention of new skills/certifications/tools]. These enhancements allow me to deliver even greater value and efficiency in our work together.
Effective [date], my rate will be increasing from $[current rate] to $[new rate] per [hour/project/month]. This adjustment reflects both the current market rates for specialized VA services and the enhanced value I'm able to provide.
I truly value our working relationship and am committed to continuing to deliver exceptional results for your business. The quality and scope of my services will remain the same, with the added benefit of my recent skill developments.
Please let me know if you'd like to discuss this change or have any questions. I'm happy to schedule a call at your convenience.
Thank you for your continued trust in my services. I look forward to our continued partnership.
Best regards, [Your Name]
Focus on the Continued Value You Provide
Don't just announce the increase; remind clients why you're worth it. This isn't bragging – it's helping them understand the return on their investment.
Highlight recent wins specific to their business. Mention that project you completed ahead of schedule or the process improvement that saved them hours each week.
Connect the increase to benefits they'll receive. If you've learned new skills, explain how these directly benefit their business.
Reinforce your commitment to their success. Make it clear that the rate increase supports your ability to continue providing high-quality service.
Share your vision for how you'll continue adding value. This might include new services you're planning to offer or ways you'll help them achieve their goals.
Handling Pushback and Keeping Your Best Clients
Not every client will immediately embrace your rate increase. Here's how to navigate objections while maintaining valuable relationships.
Listen to Their Concerns
When a client pushes back, your first instinct might be to defend your decision. Instead, take a breath and listen. Understanding their perspective helps you respond more effectively.
Budget constraints are the most common concern. Some clients operate on tight margins or fixed budgets. Acknowledge this reality without immediately backing down.
Perceived value questions might arise if a client doesn't fully understand what you do. This is an opportunity to educate them about your full contribution.
Timing issues can be legitimate. Maybe they're in a slow season or facing other financial pressures. Understanding the timing helps you find solutions.
Comparison shopping might tempt some clients. They may mention finding cheaper VAs elsewhere. This is where your unique value proposition becomes crucial.
Active listening shows respect and often reveals solutions you might not have considered. Sometimes clients just need to feel heard before accepting the change.
Negotiating a Middle Ground
For valuable long-term clients, flexibility can preserve the relationship while still improving your rates. Consider these approaches:
Gradual increases might work better than a single jump. Propose increasing rates in two or three stages over six months.
Scope adjustments can maintain their budget while reflecting your new rates. Perhaps they can reduce hours or remove certain tasks from your agreement.
Performance incentives tie increases to specific outcomes. If you achieve certain goals, the rate increase takes effect.
Loyalty considerations for long-term clients might include a smaller increase or delayed implementation. Value the relationship while still moving toward market rates.
Package deals can provide value while increasing overall revenue. Offer a discount for purchasing more hours upfront or committing to longer contracts.
Remember, negotiation doesn't mean abandoning your worth. It means finding creative solutions that work for both parties.
Knowing When to Part Ways
Sometimes, despite your best efforts, a client won't accept your new rates. That's okay. Not every client is the right fit for your growing business.
Signs it's time to move on include clients who consistently undervalue your work, demand excessive discounts, or create more stress than revenue.
Professional departure maintains your reputation. Thank them for the opportunity, offer to help transition to a new VA, and complete any outstanding work excellently.
The opportunity cost of keeping low-paying clients is real. That time could be spent on clients who value your services appropriately.
Your business evolution might mean outgrowing certain clients. As you specialize and increase your expertise, your ideal client profile changes too.
Letting go of clients can feel scary, but it creates space for better opportunities. Trust that clients who truly value quality will pay appropriate rates.
Conclusion
Raising your rates isn't just about making more money – it's about building a sustainable business that reflects your true value. Every VA who's successfully grown their business has navigated this challenge, and you can too.
Start by honestly assessing where you are today. Look for the signs that it's time for an increase. Research the market thoroughly. Calculate rates that support your business goals. Then, communicate confidently with your clients, focusing on the value you provide.
Remember, clients who truly appreciate your work will understand that quality comes at a price. Those who don't value your contributions aren't the clients who will help you build a thriving business.
Take action today. Review your current rates, research your market, and set a date for your increase. Your future self – and your business – will thank you for having the courage to charge what you're worth.
References
Like this project
Posted Jun 30, 2025
Struggling with how to raise your virtual assistant rates? Learn when and how to increase your prices, communicate the change, and retain your valuable clients.
