Raising Your Rates? Notify Clients with This Free Template

By Owl Team

Why Raising Your Rates is a Smart Business Move

Thinking of raising your rates? It’s a necessary step for a business owner to grow your practice and stay financially healthy. Here’s why:

The Importance of Staying Competitive
Costs are always on the rise—rent, utilities, insurance, and even software fees. To keep your practice profitable and in line with industry standards, adjusting your rates is essential. A fee increase also reflects the added value you bring to your clients, especially if you’ve enhanced your skills or services, such as getting certified in a new therapy modality like EMDR​.

Common Reasons for a Price Increase
You might increase your rates because of inflation, higher demand for your services, or increased operating expenses like switching to a more efficient EHR system​. Improved qualifications, such as additional certifications, also justify raising your rates​.

A Good Idea for Growth
Increasing your fees isn’t just about covering rising costs — it’s a key to long-term growth. It helps ensure your practice remains sustainable, allowing you to focus on what matters most: providing great care to your clients.

When to Notify Clients About a Price Increase

Advance Notice Best Practices
Giving clients adequate time to adjust to new pricing demonstrates respect for their financial needs and minimizes potential disruptions to their therapy experience. Generally, a notice period of 30 to 60 days is recommended to help clients plan and make any budgetary adjustments. This timeframe is typically enough for clients to review the new rates and consider their options. Furthermore, setting a specific date for the rate increase (e.g., “effective January 1”) provides clarity, reducing any possible confusion about when the change will take effect.

Careful Consideration of Client Relationships
The strength of your client relationships is a vital part of a successful practice. For longstanding clients — those who have been with you for several months or years—a personal approach to rate adjustments can make a significant difference. Clients who feel valued and understood are more likely to accept the change positively, seeing it as part of a well-maintained relationship rather than a purely transactional adjustment.

Additionally, offering to discuss the rate increase with them directly can foster trust and demonstrate that you’re sensitive to their circumstances. These personalized gestures can help reinforce the strength of your relationship, showing clients that their well-being is at the heart of your decision to adjust fees.

Providing Flexible Options for Long-Time Clients

Sometimes, a price increase might be an adjustment for clients who have been with you for years. Consider offering flexible solutions, like a transitional period at their current rate or a discounted multi-session package. This can show appreciation for their ongoing commitment while making the rate change manageable for them. Additionally, ensure they feel valued by encouraging them to reach out with questions or concerns and by emphasizing your dedication to their well-being.

This kind of support demonstrates your commitment to client care and can ease the transition, helping both you and your clients move forward smoothly.

Selecting an Effective Date
Choosing the right date for your price increase is crucial. Many therapists opt for the start of a new year or a slower period in their practice. Pick a time that works for both your business and your clients, and make sure it aligns with your practice’s financial planning.

How to Communicate a Price Increase Professionally

Clear Communication is Key

When raising your rates, transparency is everything. Be clear about why the increase is necessary. Whether it’s due to rising operational costs, increased investment in tools like an EHR, or new certifications, clients are more likely to understand and accept the change if they know the reasons behind it. In the case of longstanding clients, consider offering a more in-depth explanation to emphasize your appreciation for their loyalty. You could also discuss your commitment to continuous improvement and how these adjustments allow you to maintain high-quality services.

Personal Touch Matters
If you’ve had clients for years, consider sending them a more personalized message. A personal email or handwritten note shows that you value them beyond just being a number in your schedule. This small gesture can go a long way in maintaining goodwill.

Using Multiple Channels
It’s important to make sure your clients actually receive and understand the message. Send a formal email, follow it up with a letter if needed, and make sure to confirm receipt in person or through your client portal. Using multiple channels ensures no one misses the update.

Essential Elements of a Price Increase Notice

New Rates and Effective Date
Always make sure the new rates and the date they’ll take effect are front and center in your communication. Avoid confusion by stating this clearly and as early in the message as possible. 

You could say something along the lines of “Effective on January 1, 2025, session fees will be [insert new price here]. December 31, 2024 will be the last day that session fees will be [current price here].”

Reasoning Behind the Rate Change
Clients are much more understanding when they know why something is happening. Briefly explain the reasons behind the price increase, whether it’s due to the higher cost of business operations or enhanced services.

Offer for Further Questions or Concerns
Invite your clients to reach out if they have any questions. A simple line offering your contact details for questions or clarifications goes a long way in showing your openness and care.

Smooth Transition Strategy
Encourage a smooth transition by reassuring clients that the increase reflects the enhanced value of your services. Explain any new or improved offerings, so they understand the benefits of this adjustment​.

Free Price Increase Email Template

Communicating a rate increase effectively requires clarity, empathy, and professionalism. Drafting this message can feel challenging, especially if you want to balance a straightforward explanation with sensitivity toward your clients’ needs. A well-crafted email can help you deliver the news in a way that maintains trust and shows respect for their financial considerations.

For many therapists, a clear and concise message works best. It’s important to briefly explain the reason behind the increase, such as rising operational costs, investments in additional training, or enhanced services that contribute to the quality of care. Clients are often more understanding of a fee adjustment when they know it reflects genuine enhancements to their experience and value.

Additionally, including specific details, such as the new rate, the effective date, and an invitation for questions, helps to create a transparent and open line of communication. While brevity is key, taking a moment to express gratitude for their continued trust and partnership can reinforce a positive, collaborative tone.

Perfect Price Increase Letter Structure:

  • Greeting & Gratitude: Start by addressing the client by name and expressing your appreciation.
  • Explanation of the Price Increase: Provide a brief explanation of the reason behind the adjustment.
  • Details of the New Pricing Plan: Clearly list the current rate, the new rate, and the effective date.
  • Reassurance & Offer of Support: Reinforce your commitment to the client and encourage them to contact you if they have concerns.
  • Closing: End with a warm, positive note, thanking them for their continued partnership.

Below is a ready-to-use template to help you communicate the change effectively for you to download along with a brief follow-up email template you can send as an additional reminder to clients.

Free Price Increase Email Template!

Best Practices for Sending a Price Increase Announcement

Timing and Frequency
It’s always best to give your clients ample time to prepare. Ideally, notify them at least 30 days in advance, and follow up with a reminder as the effective date approaches. Consider using multiple methods—email, client portals, and even direct mail.

Following Up
After your initial notice, send a follow-up message closer to the date to make sure clients are fully aware of the upcoming change. This helps clear up any confusion and ensures they have a chance to voice concerns before the new rates take effect.

Rate Increase Letter Examples
The tone of your price increase letter will depend on your practice. For solo practitioners, a more personal touch might be appropriate, while a group practice may opt for something more formal. Craft your message to match the relationship you have with your clients.

Direct Mail vs. Email
Emails are fast and convenient, but some clients may prefer a physical letter. Consider the preferences of your client base when deciding how to deliver your notice.

Addressing Client Concerns & Ensuring a Smooth Transition

Handling Pushback on Higher Prices
Some clients may push back or express concern about the new rates. Be ready to explain your reasoning for the new pricing structure clearly and offer alternatives where possible. For example, you might offer package deals or adjust your sliding scale for clients with financial difficulties.

Offering Alternatives
For clients who express concerns, you could offer them value in other ways, such as discounts on multi-session packages, or a few additional services during the transition phase. This helps smooth the process while showing clients that you’re still committed to their well-being.

Maintaining a Good Relationship
Your relationship with your clients is the foundation of your practice. Even if some clients express concerns, make sure they feel heard and valued. Offer reassurances that their care remains your top priority​​.

Conclusion: Price Increase Done Right

Recap the Importance of Clear Communication
When handled correctly, a price increase doesn’t have to be stressful. Clear, transparent communication is key. Let your clients know why the change is happening and how it benefits them.

Emphasizing Client Trust and Transparency
Clients who trust you will appreciate your honesty and the value you continue to provide. Transparency builds that trust and helps ensure a smooth transition for both parties.

Free Template Reminder
Looking for an easy way to notify your clients? Download our free customizable price increase letter template to streamline the process and make your rate increase as smooth as possible.

Frequently Asked Questions

  • What is the best way to inform clients of a price increase?
    The best way is through clear, professional communication via email or letter, with at least 30 days’ notice.
  • How much advance notice should I give for a price change?
    Aim to give clients 30 to 60 days’ notice.
  • What are some common reasons for raising rates?
    Inflation, rising operational costs, and offering new or enhanced services are typical reasons for a price increase.
  • How do I handle longstanding clients who are upset about higher prices?
    Offer a personalized explanation, emphasize the value you continue to bring, and consider alternative solutions like package deals or sliding scale adjustments.
  • Can I offer incentives to clients to ease the transition?
    Yes, offering discounts on packages or additional services during the transition can help ease concerns.

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