Careers Now: Freelancers conflicted about increasing fees for longtime clients

DEAR READERS: I’ve had several conversations with freelance professionals who are conflicted about asking for an increase in the fees they charge their regular, longtime clients. They don’t want to rock the boat, especially if the client is one who accounts for a large percentage of their income — but they’ve been charging the same fee for several years and feel they deserve a bump up. Here, two HR pros weigh in with advice.

“Communicating an increase in fees to a regular, longtime client can be a sensitive matter,” acknowledges Sylwia Smietanko, an HR specialist and recruiter at Passport Photo Online, who notes that everyone wants to maintain a positive relationship while also ensuring financial viability.

Fortunately, there are a few steps freelancers and consultants can take to achieve both goals.

• Evaluate your current rates compared with industry standards and market rates for similar services. This advice comes from Emily Bennett, HR manager at Office Topics, who says it is the best way to help determine if you are charging a fair price.
• Assess your value.

“Be prepared to discuss your value proposition — the value you bring and the impact your work has on your clients’ businesses,” Bennett suggests. “If you feel that you are providing valuable services and contributing to your clients’ success, you may have a stronger case for raising your rates.”

Smietanko agrees.

“Remind the client of the long-standing relationship you have had and the value they have received from your services,” she says. “It’s good to acknowledge the client’s loyalty, too.”

• Explain your reasoning. Transparency is key, mietanko stresses.

“Be transparent about why you are increasing the fees. Is it due to rising costs? Changes in the market? Or increased demand for your services?” she asks. “Providing a clear explanation can help the client understand and accept the change.”

• Give as much notice as possible. If you’re sure your rates will rise, give your clients a chance to plan ahead.

“This will give them time to budget for the change and prepare for the increased cost,” Smietanko says.

• Be open to negotiating the terms of the new fee arrangement.

“Consider their needs, and try to find a mutually beneficial solution,” Smietanko advises. “Overall, it’s important to approach the conversation honestly and professionally and to be prepared to listen to the client’s concerns and address them as best you can.”