{"id":41372,"date":"2020-08-19T10:11:20","date_gmt":"2020-08-19T15:11:20","guid":{"rendered":"https:\/\/getflywheel.com\/layout\/?p=41372"},"modified":"2023-03-28T13:00:22","modified_gmt":"2023-03-28T18:00:22","slug":"raise-prices-for-your-web-design-business","status":"publish","type":"resource","link":"https:\/\/wpengine.com\/case-studies\/resources\/raise-prices-for-your-web-design-business\/","title":{"rendered":"When and How to Raise Prices for Your Web Design Business"},"content":{"rendered":"\n

This guest post was written by Preston Lee, founder of Millo. To learn more about Millo,\u00a0visit their website<\/a><\/em>.<\/em><\/p>\n\n\n\n

Determining when to raise prices for your web design business can be a truly difficult task for a number of reasons.<\/p>\n\n\n\n

First, there\u2019s fear (completely justified fear, too!). Finding clients is hard enough in the first place. The last thing you want to do is scare them away by changing your web design pricing.<\/p>\n\n\n\n

Then there\u2019s the sheer logistics of it. Figuring out how to raise prices without causing confusion or client conflict is crucial.<\/p>\n\n\n\n

That said, rarely do designers who have raised their prices go on to regret it.<\/strong><\/p>\n\n\n\n

\"two<\/figure>\n\n\n\n

Instead, most web designers will say things like, \u201cI wish I would have raised my prices sooner!\u201d <\/p>\n\n\n\n

In today\u2019s article, the goals are to:<\/strong><\/p>\n\n\n\n

    \n
  1. Give you confidence on when to raise prices<\/li>\n\n\n\n
  2. Offer actionable advice on how to raise prices<\/li>\n<\/ol>\n\n\n\n

    Let\u2019s start with the \u201cwhen.\u201d<\/p>\n\n\n\n

    \n\n\n\n

    When to Raise Prices as a Web Designer (or Agency)<\/h2>\n\n\n\n

    Over the years, web design pricing has been a tricky issue, primarily because the task of designing a website (and knowing what to charge for it) has changed so much over the years.<\/p>\n\n\n\n

    When I designed my first website over 15 years ago, I didn\u2019t worry much about page speed or user accessibility. Add to that the constant barrage of new devices, languages, robust and secure web hosting<\/a>, and UX guidelines and it\u2019s easy to get overwhelmed knowing how to set web development pricing that will keep you in business.<\/p>\n\n\n\n

    \"a<\/figure>\n\n\n\n

    Luckily, knowing when to raise prices isn\u2019t nearly as difficult as keeping up with web design processes. Web design pricing can be far more simple.<\/p>\n\n\n\n

    Below, I\u2019ve included a list of common signs it\u2019s time to raise your rates as a web designer or web design agency.<\/p>\n\n\n\n

    Four Signs it\u2019s Time to Raise Your Web Design Rates<\/h3>\n\n\n\n

    1. New clients don\u2019t bat an eye when you send them your bid<\/strong><\/p>\n\n\n\n

    The truth is, you want to make it easy for your clients to say \u201cyes\u201d to a bid. But if you never get even a little bit of hesitation or pushback from your clients, then your web development cost is set too low.<\/p>\n\n\n\n

    My recommendation:<\/strong> Raise prices with each new client until you begin to see some pushback. Then, settle into a price where both parties feel like they\u2019ve won.<\/p>\n\n\n\n

    2. Your profit margins are too low<\/strong><\/p>\n\n\n\n

    Of course, there are more ways to improve your profit margin<\/a> than to just raise prices, but if you frequently find yourself with too little left over at the end of a project, your web design pricing is probably set too low.<\/p>\n\n\n\n

    My recommendation: <\/strong>Raise prices while adding value\u2014but not cost\u2014to each project (more on that in the \u201chow\u201d section of this article).<\/p>\n\n\n\n

    3. You\u2019ve had the same pricing for years<\/strong><\/p>\n\n\n\n

    If you\u2019ve had the same web designer hourly rate or web development pricing for more than a year, it\u2019s time to take a hard look at why. Even with just a standard rate of inflation cost, you\u2019re doing yourself a disservice by not raising your prices.<\/p>\n\n\n\n

    My recommendation: <\/strong>Raise prices every year, at a minimum. Grandfather in old clients if you need to, but never sign on new clients at the same rate as you did over a year ago.<\/p>\n\n\n\n

    4. You want more money<\/strong><\/p>\n\n\n\n

    Some say money is the root of all evil. The truth is: I like money. I like having money in the bank. I like building a business that generates money for me while I do work that I love and spend more time with my family. <\/p>\n\n\n\n

    There\u2019s nothing wrong with wanting more money, as long as you stay rooted in what\u2019s actually important. If you find yourself wanting a bit more cushion each month, it may be time to raise your rates.<\/p>\n\n\n\n

    My recommendation: <\/strong>Let your desire to build financial stability push you past the fear of raising your prices. And always stay rooted in what matters far more than money: family, loved ones, passion, meaning, legacy, etc.<\/p>\n\n\n\n

    You Don\u2019t Have to Wait for a Sign to Raise Prices<\/h3>\n\n\n\n

    While all the reasons I listed above will help you know when to raise prices, the truth is: you don\u2019t need an excuse to raise prices. <\/p>\n\n\n\n

    If you feel like it\u2019s time, don\u2019t wait for a sign. Just raise your prices. It\u2019s much easier than you think.<\/p>\n\n\n\n

    Below, I\u2019ll share a few tips on how<\/em> to raise prices once you\u2019ve decided the timing is right.<\/p>\n\n\n\n

    \n\n\n\n

    How to Raise Prices as a Web Designer (or Agency)<\/h2>\n\n\n\n

    Once you\u2019re convinced it\u2019s time to raise your web design pricing, there are a few tricks you can use to make the process less painful or awkward.<\/p>\n\n\n\n

    For starters, it\u2019s important to recognize there will be two critical tasks you face:<\/strong><\/p>\n\n\n\n

      \n
    1. Learning how to raise prices for new clients<\/strong> (easy)<\/li>\n\n\n\n
    2. Figuring out how to raise prices for existing clients<\/strong> (more challenging)<\/li>\n<\/ol>\n\n\n\n

      How to Raise Prices for New Clients (Easy)<\/h3>\n\n\n\n

      There\u2019s really not much to learn when asking how to raise prices for new clients. The truth is, it\u2019s pretty simple. <\/p>\n\n\n\n

      \"a<\/figure>\n\n\n\n

      All you have to do is update your web development pricing anywhere you\u2019ve got it listed online. Here are the two biggest suggestions:<\/p>\n\n\n\n

      Raise prices in your online portfolio<\/strong><\/p>\n\n\n\n

      If you\u2019ve got a portfolio website<\/a> that showcases your work and your pricing, be sure to update any web development cost details there. That could include on your rate sheet (if you have a separate one) or just on a pricing page.<\/p>\n\n\n\n

      Raise prices on any relevant marketplaces<\/strong><\/p>\n\n\n\n

      If you\u2019re a freelancer or agency who gets a lot of new business from sites like Upwork<\/a>, you\u2019ll want to update your rates there as well. Take note of which services raise your rates for pre-existing clients and make sure you don\u2019t inadvertently raise prices for someone you meant to grandfather in to previous web design pricing.<\/p>\n\n\n\n

      How to Raise Prices for Current and Former Clients (More Challenging)<\/h3>\n\n\n\n

      As I mentioned previously, knowing how to raise prices for new clients is easy. They have no historical context to know if your rates are higher than they used to be.<\/p>\n\n\n\n

      But knowing how to raise prices with existing clients can be a bit more complicated. Depending on the client, they\u2019ll understand the needed uptick in web development cost, while others may push back or get offended. And some might even leave.<\/p>\n\n\n\n

      Remember: <\/strong>If a client leaves because you\u2019ve raised your web development pricing, that just opens the door for a new client who is ready and willing to pay your new (higher) rate.<\/p>\n\n\n\n

      You may also choose to grandfather in some old clients at your old rates (although, I would recommend limiting this). For that you\u2019ll want to use some sort of CRM\/invoice software to keep track of how much you\u2019re charging each client.<\/p>\n\n\n\n

      Here are a few tips on how to raise prices with existing clients:<\/p>\n\n\n\n

      Pick the right medium based on your relationship<\/strong><\/p>\n\n\n\n

      For some clients, raising your web design pricing will be as simple as sending a quick price increase letter<\/a> via email. <\/p>\n\n\n\n

      If your relationship is good enough and you\u2019ve delivered enough value in the past, they\u2019ll be happy to pay your higher rates.<\/p>\n\n\n\n

      For others, you may need to be more tactful. Maybe taking them to lunch and using a few tips below.<\/p>\n\n\n\n

      Focus on gratitude<\/strong><\/p>\n\n\n\n

      For some clients, hearing that you\u2019re raising your prices may come as a shock. Catching them off-guard like that may tempt them to think you\u2019re being selfish, greedy, or unreasonable.<\/p>\n\n\n\n

      You can head off these concerns by focusing on gratitude for your relationship with them and the previous work they\u2019ve sent you.<\/p>\n\n\n\n

      Help them know how much you value your partnership and remind them of all the good things you\u2019ve accomplished together in the past.<\/p>\n\n\n\n

      \"a<\/figure>\n\n\n\n

      Emphasize past and future value<\/strong><\/p>\n\n\n\n

      Many clients will immediately jump to this question in their mind:<\/p>\n\n\n\n

      \u201cIf your web development cost is going up, what more will I get out of our arrangement?\u201d<\/p>\n\n\n\n

      Unfortunately, this is human nature. Nearly all of us\u2014even when we try not to\u2014internally ask ourselves, \u201cWhat\u2019s in it for me?\u201d<\/p>\n\n\n\n

      That\u2019s why you should emphasize the past and future value you bring to your client. <\/p>\n\n\n\n

      For the past, try phrases like:<\/strong><\/p>\n\n\n\n