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Eric Karkovack: Hi everyone, and welcome
to another episode of the WP Minute.

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I'm your host, Eric Kovac.

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Today's topic involves one of the
more awkward components of client

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relationships discussing price increases.

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It's a necessary evil for keeping
your freelance business healthy,

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but it's not exactly comfortable.

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I've struggled with these conversations,
but I've also learned some valuable

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lessons, so I'm gonna give you some
tips for communicating more effectively.

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Let's get started.

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How to discuss price increases
with your freelance clients.

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The web was once a bastion of free and
cheap things, free tools and services.

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Catering to professionals and novices
were abundant, and even things that

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cost money were relatively affordable.

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This client has been a boon to
freelancers, agencies, and clients.

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WordPress and its ecosystem are
prime examples of this in action.

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A free content management
system with a thriving market

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for themes and plugins has.

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Boosted many businesses.

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Meanwhile, third party services like
hosting and APIs allowed us to do more

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without spending a fortune that meant
lower costs to pass on to clients.

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It helped keep our services more
affordable to small and medium sized

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organizations and created the expectation
of cheaper websites those days to be

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ending if they haven't already gone
the way of the dodo WordPress product

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pricing continues to increase, as
do the other services we rely on.

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It's all making for a.

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Difficult conversation with clients.

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No one wants to pay more for the
same thing, but it's an unavoidable

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part of the current landscape.

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So how do you approach
clients with the bad news?

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It's all about preparation
and communication.

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Let's explore ways to take the
sting out of the discussion.

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Don't take price increases.

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Personally, based on experience, my first
piece of advice relates to your psyche.

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I like providing value to my clients.

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I realized that small organizations
are on a limited budget, thus,

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I often took price increases.

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Personally, my biggest concern
was whether a client would

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scoff at the increase or leave.

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I've never enjoyed
upsetting the Apple cart.

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Plus freelancers aren't faceless
entities or people who tend

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to enjoy working with others.

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That makes raising prices more
awkward and even guilt inducing.

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But my business is small too.

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I can't afford to absorb
increased costs for the tools and

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services I use to serve clients.

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The only realistic option is to pass some,
if not all of those costs to clients.

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I've had to remind myself that
I can't control what hosting

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companies or plugin authors do.

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A price hike is well within their rights.

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I'm just the messenger in such scenarios.

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Raising my rates is also a mental part.

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Hurdle.

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I'm careful to avoid doing so in
consecutive years, but time and expertise

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are precious and finite commodities.

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There's something to be
said for recognizing the

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value you offer to clients.

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The lesson is that price
increases aren't personal.

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Some clients won't be happy.

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Well, no one jumps for joy.

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However, most understand
that's part of the deal.

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They are willing to pay more to
work with someone they trust.

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Create a plan for
implementing new pricing.

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You may have legitimate
reasons for raising prices.

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However, you'll also need a plan
to implement them effectively.

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A haphazard approach will frustrate
clients and damage relationships.

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For example, doubling prices without
prior notice won't go over well.

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Neither will complex pricing formulas
that are difficult to understand.

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Creating a plan will pay
off in more ways than one.

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You'll boost revenue and avoid
a customer service catastrophe.

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Consider the following.

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The services that we'll
see a price increase.

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The reason behind the increase, when
the change will go into effect, the

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client's impacted by the changes and
whether there are any exceptions or

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potential conflicts with current policies.

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Think about all the factors
involved with your decision.

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Try to envision what might go wrong, then
create a plan that's fair for everyone.

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It ensures a smoother
transition with fewer headaches.

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Give a simple explanation of the increase.

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Have you ever received a bill with
higher prices and no explanation?

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It happens all the time
and it's frustrating.

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You might suspect the company
has something to hide.

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A simple explanation of why prices are
increasing is meaningful, whether the

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increase comes from you or a third party
service, and it doesn't have to be wordy.

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Condense it down to a few sentences
such as our hosting provider

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has recently raised their.

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Prices.

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This change means your yearly
hosting package will increase

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by 5% to cover those costs.

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Or you could go with something like this.

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Hi.

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I wanted to let you know that my
hourly labor rate will increase to

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$75 effective January 1st, 2026.

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I understand the impact of price
increases and don't take them lightly.

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However, the change is designed to cover
the increased complexity of website

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maintenance and demands on my time.

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Please let me know if you have
any questions or concerns.

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This is where we can separate
ourselves from larger competitors

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or the world around us.

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A personal touch is part of the
formula for long-term success.

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Freelancers have an advantage
when it comes to building

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close client relationships.

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I.

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How to handle negative feedback.

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As the old saying goes,
you can't please everyone.

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You might run into a client who gives
negative feedback about higher prices

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even after you explained your side.

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What can you do?

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Start by reiterating the
reasons for the increase.

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Show empathy By stating that you
understand their concerns, offer to

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answer any questions on the subject.

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It's also worth pointing
out that the change impacts

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other clients, not just them.

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This could reassure a.

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Client who feels singled out.

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What if that's still not enough?

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That makes for a tough decision.

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Much depends on how much
you value the client.

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A client who is low on revenue and high on
complaints may not be worth the trouble.

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A take it or leave it.

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Response will force them to decide.

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No one likes to lose clients, but some
aren't as critical to your business.

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Clients who generate significant
revenue for you are another story.

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Perhaps you could implement price
increases more slowly or work out a

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mutually beneficial deal that lets them
know you care about their wellbeing.

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Regardless, save your best
deal for your best clients.

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Take the pain out of price increases.

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Price increases are a delicate
subject for freelancers.

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Our profit margins are tight
and each client has value.

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Thus, it's okay to be
concerned about their impact.

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That's why solid planning and
communication are essential.

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They allow you to increase
prices with confidence and

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better manage client feedback.

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Big companies struggle
to do this effectively.

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Your success in this area
will strengthen client trust.

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They'll see you as an.

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Honest broker who respects their
needs, and that can only mean

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good things for your relationship.

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Eventually, every freelancer
will need to raise prices.

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Doing so the right way can take
the pain out of the process.

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Okay, that's our show for this week.

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I hope you found it helpful.

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So how do you typically
handle price increases?

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How do your clients respond?

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Maybe you have a client
nightmare to share.

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Hit me up on Blue sky@kas.com.

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That's KARK s.com.

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Also, be sure to visit the
wp minute.com/subscribe

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to join our mailing list
and become a member.

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Thanks for listening, and we'll
see you next time on the WP Minute.