How to raise your retainer prices without losing clients
By Wilzer Jean-BaptisteA price increase rarely loses good clients. A surprise one does. Here's the timeline, the email and the conversation that keep them.
To raise your retainer prices without losing clients, work out each client's real margin first, then give 60 days' written notice with a specific new rate, a one-line reason and a reminder of the value you deliver. Clients rarely leave over a reasonable, well-communicated increase. They leave when it arrives as a surprise on an invoice. This is a process for making the increase unsurprising.
Key takeaways
- Start from your numbers, not a feeling. Calculate what each client costs you in loaded hours and tools, and compare it with what they pay. You'll usually find a few clients far below target and others already fine.
- You don't have to raise everyone equally. A modest across-the-board increase plus a bigger correction for clearly underpriced clients is a common, fair approach.
- Give 60 days' notice, and check contracts first. Notice turns a price surprise into a planned change. Some retainers set their own notice period or only allow changes at renewal.
- Send a clear, short email. A specific date and number, one sentence of reason, and a real reminder of value. Vague wording creates more anxiety than a clear figure.
- Reduce scope instead of discounting. If a client can't afford the new rate, offer less work at their current price. Discounting the same work teaches clients your prices are negotiable.
What a retainer price increase is (and what it isn't)
A retainer price increase is a change to the monthly fee an ongoing client pays for the same, or similar, scope of work. It reflects what it now costs you to deliver that work: salaries, contractor rates and software rarely get cheaper. If you haven't raised prices in a couple of years, the same work is earning you less every month.
It isn't a renegotiation of the whole relationship. The scope, the team and the service levels stay the same unless the client chooses a smaller scope to stay at their current price.
It isn't a penalty for difficult clients, and it isn't something to spring on a client in the middle of a crisis. It's a routine, planned business decision, made from your numbers and communicated well in advance.
And it doesn't have to start with existing clients. Many agencies raise rates for new proposals first, which tests the new price in the market before anyone's current retainer changes.
Decide the number before you talk to anyone
- Work out what each client actually costs you. Hours per month from your time tracking, multiplied by a loaded hourly cost (salary plus overheads), plus tools you pay for on their behalf.
- Compare that to what they pay. The gap is your margin on that client.
- Set a target margin the agency needs to be healthy, then calculate the retainer that hits it.
Give 60 days' notice
Sixty days gives clients time to plan their budget and shows you're not reacting to a bad month. Check each contract first and follow whatever you agreed.
| Day | What happens |
|---|---|
| 0 | Send the email (below) and offer a call |
| 7–14 | Calls with anyone who wants one |
| 30 | Short reminder in your monthly report or check-in |
| 60 | New rate starts on the next invoice |
The email
Send it from the person who owns the relationship, not a billing address.
Subject: Your retainer from [date]
Hi [Name],
I wanted to give you plenty of notice of a change to our pricing.
From [date, 60 days out], your monthly retainer will move from [current] to [new]. It's the first change since [when you last raised it], and it reflects the increase in what it costs us to deliver [the specific service] at the standard you're used to.
Nothing about the work changes. You'll keep [the two or three things they value most: e.g. weekly reporting, the same account manager, same-day responses].
If you'd like to talk it through, or look at options, I'm happy to get on a call this week or next.
Thank you for working with us. [One genuine line about a recent result.]
[Name]
Handling pushback
Some clients will reply with concerns. That's normal, and a calm, prepared answer keeps the conversation constructive.
| What the client says | How to respond |
|---|---|
| "We don't have the budget." | Offer a smaller scope at their current price, not a discount on the same work |
| "Another agency quoted less." | Ask what the other quote includes; often it's a different scope. If not, decide calmly whether this client is profitable at their current rate |
| "Can we phase it in?" | A two-step increase over a few months is reasonable for a long-standing client. Put both dates in writing |
Who to leave alone (for now)
- Clients who signed in the last six months. Their rate is probably already current.
- A client in the middle of a crisis, such as layoffs or a funding gap. Wait a quarter.
- Clients on fixed-term contracts that haven't reached renewal.
Change your prices for new clients first
If raising prices on existing clients feels too big a step, quote new clients at your new rate from today. Within a few months you'll know whether the market accepts it, and the conversation with existing clients gets easier.
Steps you can take today
- Export last quarter's hours by client from your time tracking and calculate the margin on each retainer.
- Mark the clients below your target margin and decide a new rate for each.
- Check every retainer contract for notice periods and renewal dates.
- Update your proposal template so every new quote uses the new rates starting now.
- Draft the email above for your first client, and put the send date in your calendar.
FAQ
How much notice should I give before raising a retainer?
Sixty days is a good default, unless your contract says otherwise. It gives the client time to plan their budget and makes the change feel considered rather than reactive.
How do I tell a client I'm raising my prices?
Email them from the person who owns the relationship with the new rate, the start date, a one-sentence reason and a reminder of the value you deliver. Offer a call for anyone who wants to talk it through.
How often should an agency raise its prices?
Review your rates at least once a year against what each client costs you to serve. If you haven't changed prices in two years, your margins have probably shrunk.
What do I do if a client says they can't afford the increase?
Offer a smaller scope at their current price rather than discounting the same work. That keeps your rate intact and lets the client choose what matters most.
Should I raise prices for all clients at once?
Not necessarily. Leave alone clients who signed recently, those in a crisis, and those on fixed terms until renewal, and give the biggest corrections to clients who are clearly underpriced.
How do I work out the right retainer price?
Multiply the hours each client takes by your loaded hourly cost, add any tools you pay for on their behalf, and set the retainer so it hits the margin your agency needs. Use your own overheads to set that margin.
What if I'm nervous about raising prices on existing clients?
Start by quoting new clients at your new rate. Once new clients accept it, raising existing retainers is a much easier conversation.
Get your agency listed on AgencyListed (free)
Buyers use AgencyListed to find agencies by service and city. A complete listing shows them what you do, where you work and who you work with. Verified listings carry a badge, so buyers know the details came from you.
It’s free and takes a few minutes. Not sure if you’re already here? Look up your agency and claim it.