How to Handle Price Increases with Clients

Increasing prices on existing clients is never easy, but it's often necessary as a business grows and evolves. 🌱 My firm had to do just that after we rebranded and restructured our offerings. As Rachel and I shared on a recent episode of the podcast, we knew we had to get our legacy clients closer to our new standardized pricing, but hitting them with a huge increase all at once would have been a shock. Instead, we focused on clearly communicating the value they were getting. For each client, we built a custom estimate outlining our new base packages and a la carte add-ons like payroll and bill pay. We showed the market rate pricing for their service level, with a "loyalty discount" line item at the end to gradually phase them in. This approach allowed us to anchor legacy clients to the value we provide, even with a discount. We positioned it as an investment in a long-term relationship. 🤝 Was it a perfect solution? No, and we got some feedback. But by being transparent, focusing on value, and phasing in increases, we were able to bring most clients along for the ride as we grew. 🚀 It's a tricky balance, but with the right approach, raising prices without losing loyal clients is possible. The key is making sure they understand what they're paying for and why it's worth it. The full episode link is in the comments. We have 2 upcoming webinars, Evaluating Your Client List and Building and Pricing Advisory Services, and links to those are posted 👇 as well. #accountingandaccountants #pricing #advisory #tax #caas

Let’s face it - at some point, you’ll probably have to raise your prices. 😳📈 At Pizzana, we did. With inflation, supply chain hiccups, and rising labor costs, there was no way around it. But here’s the thing: how you raise prices makes ALL the difference. The key? Communicate, communicate, communicate. 🔑 We were upfront with customers and paired our increase with new happy hours, smaller plates, and other options that kept the experience accessible for everyone. So if you’re facing this dilemma, don’t panic—we’ve all been there. Here’s how to raise prices without losing your customers: 📣 Be transparent. Share the “why.” People are far more open to change when they understand it. 👀 Check the market. If competitors are adjusting too, you’ll want to stay in line. Pro tip: never be the outlier—high or low. ✨ Add value. Upgrade menus, packaging, or service. If the experience feels five-star, the extra dollars won’t sting. 💡 Offer flexibility. Tiered pricing, smaller portions, or specials can soften the shift. At Pizzana, happy hour deals helped balance our price changes. When you raise prices with your community in mind, customers feel respected—and they’ll stick with you. Small business owners—have you had to raise prices recently? What worked, and what didn’t?

Many companies offered steep discounts to maintain business during and immediately following the pandemic, and now find themselves in a bind. Their current price doesn’t reflect the value they’re delivering or market rate, and as a result, they’re stuck having to claw their way back to normal. Easier said than done right? My suggestion: 1. Raises prices incrementally. 2. Be overly communicative and provide substantial notice. If you tell your customers about a price hike 60 days before renewal, what do you think their reaction is going to be? “Wait… what?” They didn’t see it coming, and understandably did not allocate budget to accommodate for the increase. And they’re probably going to reach out to competitors and secure a signing deal. At Sales Assembly, we gradually raised our membership fee over the past seven years, once even doubling it to account for growth and demand, but we told our customers 9-10 months in advance – well before budget season. And we thoughtfully explained why the change was happening. Overall, the response was positive - people got it and accounted for it. The biggest mistake companies make is springing the news at the last minute, almost as an afterthought, like, “Oh, by the way, we’re back to normal over here.” Give your clients time to prepare.

The truth about MSP price increases (...and how to keep clients happy while doing it) As an MSP leader, I learned a challenging lesson: Legacy pricing can kill your business sustainability. But here's the reality: No one likes talking about price increases. Not you. Not your clients. The key is having the right conversations at the right time. Here's how to do it effectively: 1️⃣ Be transparent — Openly discuss where your MSP is going and why increases are necessary. Business owners understand business realities when you're honest with them. 2️⃣ Consider cash flow impact — Remember, MSP services are often one of the largest recurring expenses for your clients. Sudden large increases can severely impact their operations. 3️⃣ Think strategically — Instead of one big jump, consider implementing smaller annual increases. This approach: ✅ Maintains better client relationships ✅ Makes increases more manageable ✅ Improves long-term retention The truth is, most businesses are receptive to price discussions when approached correctly. They might not love it, but they get it. Your goal isn't just raising prices — it's building sustainable partnerships. Watch this video to learn my exact framework for having these difficult but necessary conversations. Your pricing strategy can make or break client relationships. Choose wisely!