Is the thought of raising your rates making you break out in a cold sweat? Trust me, I get it. Many service providers and coaches stay stuck charging the same rates they did on day one because they’re afraid of losing long-term clients. But here’s the truth: if you want to grow your business in 2025 without working yourself into burnout, you need to make some changes. And the new year is the perfect time to do it.
Why the New Year Is Your Perfect Opportunity
The end of the year is prime time for making business changes. Why? Because it’s expected. Businesses everywhere are adjusting their strategies, updating their policies, and yes – raising their prices. Your clients are more likely to be receptive to changes during this period, making it the ideal moment for you to align your business with your vision for the coming year.
Start with the Right Mindset
Let me give you permission to put yourself first. It’s not selfish to say, “This is how I need my business to run. This is how much I need to charge to meet my needs and keep this business sustainable.” In fact, it’s essential. Because here’s the hard truth: many service providers put themselves out of business by prioritizing their clients’ needs over their own sustainability. That serves absolutely no one.
How to Communicate Price Increases Effectively
The key to raising rates is professional, clear communication. Always put these changes in writing, even if you typically communicate through calls or messaging apps. Frame the conversation around your business growth and evolution. Here’s a simple template:
“As my business continues to grow and evolve, I need to make some changes to ensure I can continue serving you and my other clients at the highest level. Starting January 1st, my new monthly rate will be [X] amount.”
Want to sweeten the deal? Consider adding a small additional service or deliverable with the price increase. While not necessary, it can make the transition smoother for both you and your client.
Managing the Risk of Client Loss
Here’s the reality check: roughly 80% of clients accept price increases without pushback. They simply reply with “no problem” and continue business as usual. However, if you’re in a position where losing certain clients would devastate your business, take a phased approach:
1. Secure new clients at your desired rate first
2. Raise rates with existing clients one at a time
3. Start with clients who can most likely absorb the increase
Don’t let the fear of losing clients keep you stuck at unsustainable rates. There’s always a way forward – you just need to be strategic about it.
Updating Policies and Procedures
Price increases aren’t the only changes to consider. The new year is perfect for “buttoning up” your business operations. Look at:
– Communication boundaries
– Response time expectations
– Project delivery timelines
– Service delivery methods
If you’ve been letting boundaries slip (like checking messages more frequently than promised), now’s the time to reset expectations. Remember: simplification is the name of the game in 2025.
The Path Forward
Remember – you’re an adult running a business, and your clients are adults too. Your responsibility is to make decisions that ensure your business’s sustainability and growth. Their responsibility is to decide if your new terms work for them. If you align, fantastic, if not, that’s okay too – it doesn’t reflect poorly on either party.
If you’re fired up to make these changes but want a clear roadmap for implementation, join me for my free masterclass, “Your 2025 Glow Up,” on January 2nd. We’ll dive deep into creating your vision, setting clear goals, and mapping out an actionable plan to scale your business sustainably. I’ll help you identify what’s no longer serving you, reorganize your business operations, and create a concrete plan for growth. Even if you can’t make it live, register anyway – you’ll get the replay in your inbox.
Don’t let another year go by charging less than you’re worth or running your business in a way that leads to burnout. The time for change is now, and your future self will thank you for taking action today.
