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The WP Minute brings you news about WordPress in under 5 minutes -- every week! Follow The WP Minute for the WordPress headlines before you get lost in the headlines. Hosted by Matt Medeiros, host of The Matt Report podcast.
Eric Karkovack: Hi everyone, and welcome
to another episode of the WP Minute.
I'm your host, Eric Kovac.
Today's topic involves one of the
more awkward components of client
relationships discussing price increases.
It's a necessary evil for keeping
your freelance business healthy,
but it's not exactly comfortable.
I've struggled with these conversations,
but I've also learned some valuable
lessons, so I'm gonna give you some
tips for communicating more effectively.
Let's get started.
How to discuss price increases
with your freelance clients.
The web was once a bastion of free and
cheap things, free tools and services.
Catering to professionals and novices
were abundant, and even things that
cost money were relatively affordable.
This client has been a boon to
freelancers, agencies, and clients.
WordPress and its ecosystem are
prime examples of this in action.
A free content management
system with a thriving market
for themes and plugins has.
Boosted many businesses.
Meanwhile, third party services like
hosting and APIs allowed us to do more
without spending a fortune that meant
lower costs to pass on to clients.
It helped keep our services more
affordable to small and medium sized
organizations and created the expectation
of cheaper websites those days to be
ending if they haven't already gone
the way of the dodo WordPress product
pricing continues to increase, as
do the other services we rely on.
It's all making for a.
Difficult conversation with clients.
No one wants to pay more for the
same thing, but it's an unavoidable
part of the current landscape.
So how do you approach
clients with the bad news?
It's all about preparation
and communication.
Let's explore ways to take the
sting out of the discussion.
Don't take price increases.
Personally, based on experience, my first
piece of advice relates to your psyche.
I like providing value to my clients.
I realized that small organizations
are on a limited budget, thus,
I often took price increases.
Personally, my biggest concern
was whether a client would
scoff at the increase or leave.
I've never enjoyed
upsetting the Apple cart.
Plus freelancers aren't faceless
entities or people who tend
to enjoy working with others.
That makes raising prices more
awkward and even guilt inducing.
But my business is small too.
I can't afford to absorb
increased costs for the tools and
services I use to serve clients.
The only realistic option is to pass some,
if not all of those costs to clients.
I've had to remind myself that
I can't control what hosting
companies or plugin authors do.
A price hike is well within their rights.
I'm just the messenger in such scenarios.
Raising my rates is also a mental part.
Hurdle.
I'm careful to avoid doing so in
consecutive years, but time and expertise
are precious and finite commodities.
There's something to be
said for recognizing the
value you offer to clients.
The lesson is that price
increases aren't personal.
Some clients won't be happy.
Well, no one jumps for joy.
However, most understand
that's part of the deal.
They are willing to pay more to
work with someone they trust.
Create a plan for
implementing new pricing.
You may have legitimate
reasons for raising prices.
However, you'll also need a plan
to implement them effectively.
A haphazard approach will frustrate
clients and damage relationships.
For example, doubling prices without
prior notice won't go over well.
Neither will complex pricing formulas
that are difficult to understand.
Creating a plan will pay
off in more ways than one.
You'll boost revenue and avoid
a customer service catastrophe.
Consider the following.
The services that we'll
see a price increase.
The reason behind the increase, when
the change will go into effect, the
client's impacted by the changes and
whether there are any exceptions or
potential conflicts with current policies.
Think about all the factors
involved with your decision.
Try to envision what might go wrong, then
create a plan that's fair for everyone.
It ensures a smoother
transition with fewer headaches.
Give a simple explanation of the increase.
Have you ever received a bill with
higher prices and no explanation?
It happens all the time
and it's frustrating.
You might suspect the company
has something to hide.
A simple explanation of why prices are
increasing is meaningful, whether the
increase comes from you or a third party
service, and it doesn't have to be wordy.
Condense it down to a few sentences
such as our hosting provider
has recently raised their.
Prices.
This change means your yearly
hosting package will increase
by 5% to cover those costs.
Or you could go with something like this.
Hi.
I wanted to let you know that my
hourly labor rate will increase to
$75 effective January 1st, 2026.
I understand the impact of price
increases and don't take them lightly.
However, the change is designed to cover
the increased complexity of website
maintenance and demands on my time.
Please let me know if you have
any questions or concerns.
This is where we can separate
ourselves from larger competitors
or the world around us.
A personal touch is part of the
formula for long-term success.
Freelancers have an advantage
when it comes to building
close client relationships.
I.
How to handle negative feedback.
As the old saying goes,
you can't please everyone.
You might run into a client who gives
negative feedback about higher prices
even after you explained your side.
What can you do?
Start by reiterating the
reasons for the increase.
Show empathy By stating that you
understand their concerns, offer to
answer any questions on the subject.
It's also worth pointing
out that the change impacts
other clients, not just them.
This could reassure a.
Client who feels singled out.
What if that's still not enough?
That makes for a tough decision.
Much depends on how much
you value the client.
A client who is low on revenue and high on
complaints may not be worth the trouble.
A take it or leave it.
Response will force them to decide.
No one likes to lose clients, but some
aren't as critical to your business.
Clients who generate significant
revenue for you are another story.
Perhaps you could implement price
increases more slowly or work out a
mutually beneficial deal that lets them
know you care about their wellbeing.
Regardless, save your best
deal for your best clients.
Take the pain out of price increases.
Price increases are a delicate
subject for freelancers.
Our profit margins are tight
and each client has value.
Thus, it's okay to be
concerned about their impact.
That's why solid planning and
communication are essential.
They allow you to increase
prices with confidence and
better manage client feedback.
Big companies struggle
to do this effectively.
Your success in this area
will strengthen client trust.
They'll see you as an.
Honest broker who respects their
needs, and that can only mean
good things for your relationship.
Eventually, every freelancer
will need to raise prices.
Doing so the right way can take
the pain out of the process.
Okay, that's our show for this week.
I hope you found it helpful.
So how do you typically
handle price increases?
How do your clients respond?
Maybe you have a client
nightmare to share.
Hit me up on Blue sky@kas.com.
That's KARK s.com.
Also, be sure to visit the
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and become a member.
Thanks for listening, and we'll
see you next time on the WP Minute.