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A Checklist for Raising Your Fees

Like many things in life, raising fees is more an intuitive art than an exact science. There are some basic factors to consider, including ethical considerations and the business bottom line.

Review your fees annually. Regular incremental adjustments will create less impact and animosity than a large increase every few years.

Advise clients up front that fees are reviewed annually and that this may result in a fee increase. This will instill proper expectations and reduce the element of surprise.

Inform clients of the new fee/rate structure two months before the increase takes effect.

Always present your fee increases in writing. Although you may inform some clients in person or on the telephone, follow up with a document that can be kept on file.

Provide the client with justifiable reasons for a fee increase. They are much more likely to calmly accept an increase that is well researched and based on market conditions and other acceptable factors (inflation, salaries, higher disbursement fees, etc).

Analyze your client’s economic picture and assure them that a fee increase fits within their budget. This indicates your sensitivity and understanding of their unique situation.

Do not apologize for the fee increase. If it’s reasonable, you should not feel apologetic about it.

For more information, read CBA PracticeLink's full article: How to Adjust Your Fees Without Losing Clients.