How to Raise Your Rates as a Web Designer
As an independent contractor or agency, you may find it challenging or even awkward to talk about money, especially when it’s time to increase your rates. Perhaps you’re worried about saying the wrong thing, straining client relationships, or losing clients who deem your services “too expensive.”
The reality of running your own business is that you will eventually raise your prices—and likely more than once. That’s why it’s important to prepare for conversations about money and get comfortable discussing rates with clients.
It may make sense for you to raise your rates as your costs rise. However, raising your rate doesn’t have to be based solely on external factors. A few alternative reasons for wanting to increase your rate include:
1. Experience
The longer you’re in business, you’ll likely become more efficient and effective in your chosen field. The number of sites you’ve designed, the challenges you’ve overcome, and your ever-evolving expertise can all contribute to how you grow your offerings. Your rate can and should reflect everything you bring to a project.
2. Customer service
The quality of service you provide matters. As you increase your rates, consider your approach to working with clients. The client experience you provide, and accommodating their individual needs with a positive, can-do attitude justifies a premium price for your services.
3. Value
Consider the value you bring to each project. Perhaps it’s the breadth and depth of services you provide or the way you handle projects with professionalism. It could even be your approach to complex scenarios or your efficient project management. Know your value and ensure it’s represented in your rates.
When it comes to why you should increase your rate, give your client complete confidence that the increased price will benefit them—better quality, customer experience, and delivery are invaluable for their business growth.
When it’s time to raise your rates
The process of increasing your income doesn’t happen overnight. As you reach certain milestones or make progress as a creative professional, you may find that it’s time to raise your rates.
The following are reference points that may justify a price change:
After honing your craft on your first 10 site builds.
After the next five site builds.
At the beginning of a new calendar year.
As you become an expert (or earn certifications) in any of specific functionality: eCommerce, SEO, or setting up a product like Acuity Scheduling, Email Campaigns, and more.
Perfecting a specific industry-style website, such as health and wellness coaches, yoga studios, travel blogs, beauty brands, restaurants, and so on.
Defining your value proposition
Your value proposition is the combination of all the ways your services can benefit clients. Whenever you start thinking about raising your rates, it’s important that you define your unique value proposition and find ways to set prices that reflect it. For instance, once you have 20 websites under your belt, you may find that you’ve gained a great deal of experience with the design process, strategizing solutions, overcoming challenges, and working with clients.
Some examples of what can make you stand out include:
Wireframe skills: Your ability to lay out content in a meaningful way that drives action and converts website visitors into customers.
Graphic design skills: Your ability to make websites beautiful and eye-catching. This also includes any additional contributions you can make to marketing materials, such as custom logos, business cards, merchandise, and more.
Customer service skills: Your ability to communicate effectively, deliver projects on time, and provide excellent service to your clients.
Customization skills: Your ability to customize your client’s website to fulfill their unique vision and branding.
Expertise: Your specialized knowledge about a tool, process, industry, or customer journey.
Speed: Your ability to deliver well-designed projects quickly.
Deliverables: In addition to designing websites, you may offer trainings, courses, and services like copywriting or SEO.
And more: Identify everything that adds value to your client’s experience and helps them choose you over other web designers.
Pro tip: If you have a difficult time defining your unique value proposition, consider asking your clients for testimonials and see what they emphasize about your service. From there, look for common themes to understand the unique value you bring to the table.
Charging extra for add-ons
As you consider increasing your prices, don’t forget about add-ons. You may choose to raise your prices for specific add-on services like setting up Scheduling, Email Campaigns, Tock, SEO-optimized blogs, and more.
Learn more about strategically pricing your services.
How to communicate a price change
When communicating a price increase, the key principle to understand is to focus on communicating the increased value more than the increased price.
As you share news on a rate update, share the benefits your clients can expect to have from working with a professional with your level of experience and creativity. You’re no longer just starting out—you’re a skilled web designer, and the quality will show in the final product.
The following templates share language you can use to effectively communicate price increases to your clients:
Example 1:
If you have repeat clients, give them a heads up through email. You’ll want to notify them a few months in advance of changing your prices. To add a personal touch, you can customize the template below for every client.
Dear [Client Name],
I am so excited about everything your business has become since we began working together!
In the last year, I’ve gained more experience, knowledge, and expertise [you can be more specific here, depending on the clients needs] to help me provide the best level of service to you and your business.
To accomplish even more and better serve you, my rates will increase to [$X] per hour starting three months from now.
I look forward to delivering more value to your business. Thank you for your understanding.
Sincerely,
[Your Name]
Example 2:
If a client emails you about new work but is not aware of your price increase, a clear and direct message like the following can be a great way to start the conversation.
Dear [Client Name],
I would love to bring this idea to life for you.
Our current hourly rate is [$X]. Here is a link to make a deposit.
I can’t wait to begin!
Thank you,
[Your Name]
If you feel the need to explain why you’re raising your prices or if the client asks, you can add a clarifying sentence to your email from the examples below.
To give you the best service possible, we’ve adjusted our prices. Thank you for understanding this decision to provide even more value to your business.
To ensure you get the most out of our services, we’ve adjusted our prices slightly. This change will bring greater value to your business.
You may have noticed a price increase from our last project. Each year, we adjust our prices to ensure we can provide the absolute best service to our clients.
Every so often we adjust our prices to reflect the work and services we offer. We know it’s less than ideal, but our expertise has grown, and we now deliver an even better experience for your business.
Just a heads up: We’ve improved the quality of our [skill or service] and have adjusted our prices accordingly.
Handling objections
Occasionally, you may encounter a client who objects to your price increase. The following can help you navigate this conversation:
Meet them halfway
Offer to provide the next service at a rate that’s higher than your previous price but lower than your new price. Set expectations that future services will be charged at the updated rate.
Use time to your advantage
If a client hasn’t worked with you in a while, summarize how you’ve spent time growing your expertise since last working together. Expand on how you can now bring even more value to their business.
Offer alternative options
If you find that you’re completely out of their budget, you can recommend other designers in your network or from Squarespace Marketplace. You can say something like, “I understand that my pricing may be above your planned budget. I’d highly recommend checking out Squarespace Marketplace. There are amazing and experienced Squarespace Experts who I know can bring your vision to life and may be able to work with your budget.”
You’ve got this!
If you still feel hesitant about raising your prices, try to keep the following in mind:
As the quality of your work increases, so should your prices.
As your services expand, so should your prices.
As you deliver even higher value to your clients and their projects, your prices should reflect all the benefits of working with you.
Want more?
Check out Squarespace Circle, Squarespace’s program for professional designers. Along with exclusive content, discounts, and other perks, Circle brings professionals together from all across the globe to exchange advice while connecting with new clients and collaborators.
