Discover how your firm's pricing compares to other US firms with Ignition's 2024 US Accounting and Tax Pricing Benchmark. Get insights on current fees, pricing models and planned increases for common accounting and tax services. Stay informed and confidently adjust your firm’s pricing to boost revenue in 2025.
2024 US Pricing Benchmark Report: How does your firm compare?
Influential thought leader Ryan Lazanis (CPA, CEO and Founder of Future Firm) and other industry experts uncover what US firms are charging for tax, advisory, and compliance services, and share actionable insights to help you optimize your pricing strategy, boost profitability, and stay competitive in 2025 and beyond.
How to communicate a price increase to your clients
This article has been modified for different regions, click here to access the Australian or UK version
You’re thinking about raising your prices to line up with the value your firm provides. Now you just need to tell your existing customers (and you’re dreading it).
Communicating a price hike well means combining timing that respects billing cycles, transparency about the reasons, and the right delivery channel for each client. When all three come together, most clients are open to the change. This guide walks you through a simple, repeatable approach so you can raise your rates confidently and keep your best clients in the process.
Key takeaways
Providing 30–60 days’ advance notice gives clients time to adjust budgets and demonstrates respect for the business relationship, reducing pushback and preserving trust.
Personalizing outreach based on client value (calls for high-value accounts, tailored emails for retainers, portal alerts for project clients) ensures each client feels appropriately valued.
Leading with the new rate and effective date, then explaining the value-focused reason, prevents confusion and positions the increase as a business decision rather than an arbitrary change.
Using multiple communication channels (email, calls, in-app notifications) reinforces the message and ensures no client misses the announcement before their next invoice.
Automating contract updates, billing adjustments, and payment collection in a single workflow eliminates manual errors and accelerates cash flow during the transition period.
Give clients advance notice that aligns with billing cycles
The most effective way to raise prices is to give clients enough time to prepare.
Aim for at least 30–60 days' notice before the new rate takes effect. For larger increases or enterprise accounts with longer contract cycles, a 90-day window shows respect for their planning process.
Remember: clients who feel caught off guard may react defensively. Those who receive enough notice have time to budget, ask questions, and adjust.
As Ignition's research confirms, most clients accept periodic price increases when handled well; they often expect costs to rise over time. The friction generally comes from how the news is delivered.
Timing your notice to billing cycles is equally important.
Announce the change before a client's renewal period, not mid-engagement. This gives them a natural decision point to either renew at the new rate or consider alternatives. Many firms find the cleanest transitions happen when increases align with annual renewals or fiscal year starts, since clients are already reviewing their spending at those times.
Make advance notice a professional standard in your firm. If you use a platform like Ignition, you'll be prompted to review pricing at renewal time and can apply increases in just a few clicks.
Decide which clients need personal outreach
When it’s time to notify customers about the price change, there isn’t a single one-size-fits-all solution. The right approach depends on two things: how much revenue that client represents and how deep the relationship runs.
Segmenting your clients before you communicate a price increase helps you balance efficiency with relationship preservation. A simple three-tier framework works well for most firms:
High-value accounts: Your top clients by revenue or strategic importance
Retainer clients: Ongoing engagements that bill monthly or quarterly
Project-only clients: One-off or infrequent work with a limited ongoing relationship
Each tier calls for a different communication method. Here's how to approach them.
Schedule a brief phone or video call to go over the changes. The goal isn't to sell them on the increase, but to deliver the news and allow them to ask questions. You also want to make it clear that they matter enough to hear from you personally.
Before the call, prepare a few talking points:
The new rate and the date it takes effect
A reason tied to the value you deliver
One or two specific outcomes you've achieved for them
An invitation to ask questions
This personal outreach can strengthen loyalty and build trust with your high-value clients.
Retainer clients receive a tailored email
Not all regular clients need a phone call. For many established retainer clients, a personalized email is perfectly fine.
"Personalized" means more than a mail merge with their first name. Reference the services they receive and acknowledge the history of the relationship before you get to the numbers. Personal touch matters here.
Open by acknowledging the partnership, then move directly to the facts: current rate, new rate, effective date, and the value-driven reason. That context positions the rate as earned instead of arbitrary.
Project-only clients see invoice or portal alerts
For one-off or infrequent clients, personalized outreach isn't a practical use of your time. But you still don’t want them to be surprised.
You can notify these clients through automated channels like:
A note on their next invoice
An in-app portal announcement
A system-generated email triggered before the effective date
Even for lower-touch clients, clarity and advance notice are non-negotiable. Include the new rate, the effective date, and a short explanation. If your client portal supports it, link to a brief FAQ or policy page that addresses common questions. That way, clients can self-serve rather than emailing your team.
Ready to raise rates with confidence?
Download Ignition's 2025–2026 Agency Pricing & Cash Flow Report and see exactly where your pricing stands.
Whether you're communicating by email, letter, or client portal message, structure matters. A well-structured message prevents client confusion and reduces back-and-forth questions.
The price increase letter templates below give you a starting point for each billing model. Before you customize them, review the three principles below—they apply to every message you send.
State the new rate and effective date up front
The most common mistake in price increase letters is burying the news. Many firms open with context, reasoning, and appreciation before getting to the actual change. This forces clients to scan for the actual number (which is what they care about the most).
So, lead with the facts. Your opening sentence should answer two questions: how much and when. For example:
"Starting [date], your monthly rate will increase from [current price] to [new price]."
Front-loading this information respects your client's time and immediately establishes transparency.
Vague openings like "We're writing to share some important updates to our service agreement" create uncertainty, which erodes trust before they reach the actual number.
Once you've stated the change clearly, you can follow with context, reasoning, and appreciation.
Here’s what that might look like:
Fixed fee billing price increase template
Hi [First name],
Starting [date], our fee for [service] will increase from [old price] to [new price], reflected in your renewal agreement. [Personalize with a value point.] This change ensures we can continue delivering the high-quality service your business depends on.
Please don't hesitate to reach out with any questions.
Sincerely,
[Your name]
Monthly recurring billing price increase template
Hi [First name],
Beginning [date], your monthly engagement fee will increase from [current amount] to [new amount]. [Add a specific value point.] This change reflects our ongoing investment in the team and tools that serve you.
We appreciate your continued support.
Best regards,
[Your name]
Hourly billing price increase template
Hi [First name],
Beginning [date], our hourly rate will increase from [current rate] to [new rate] per hour. [Personalize with a specific outcome.] This adjustment ensures we can continue delivering the careful, accurate work you've come to expect.
We look forward to supporting [business name] going forward.
Best regards,
[Your name]
Explain the reason with a value focus
"Rising costs" is a valid reason for higher prices, but it's also the weakest way to frame it in your price increase notice. Clients who hear only about your costs tend to focus on the burden rather than the value.
If you have specific outcomes to share, use them, as numbers are more persuasive than general statements. A client who reads "We found $4,200 in tax savings last year" is in a different headspace than one who sees "We've been a valuable partner to your business."
A stronger approach connects the increase to what you deliver. Consider framing it around:
Investment in service quality: "This rate reflects our investment in [new software, additional staff, expanded expertise] that improves the accuracy and turnaround of your work."
Market alignment: "Our new pricing aligns with current market rates for the level of service we provide."
Value delivered: "Over the past year, we've helped you [specific result]. This rate reflects the ongoing impact of that work."
Offer support and next steps
Every price adjustment message should close with a clear path forward:
Invite questions with a direct contact method.
Offer a brief call for long-term clients who may need reassurance.
Mention alternatives, like adjusted scope or a phased increase, if applicable (without leading with them or undermining the core message).
Then end the conversation with a warm sign-off, like "We value working with you and look forward to continuing to support your business at this new rate."
Use multiple channels to reinforce the message
Relying on a single channel risks clients missing the price increase announcement entirely and gives them grounds to dispute a billing change later.
Formal notice via email or letter
Email is the primary channel and should be your first touchpoint with your retainer and project-only clients.
Use a subject line like "Important update to your service agreement,” which eliminates ambiguity about what's inside.
For traditional or high-value accounts, a physical letter alongside the email adds formality and creates a paper trail that protects both parties. And for key clients, you’ll want to start with a call.
In-app and portal notifications for all
If your firm uses a client portal or practice management platform, set up an in-app notification to appear when clients log in during the notice period. It catches anyone who missed your email and ensures no one can claim they were unaware.
Update contracts, invoices, and payments in one workflow
Many firms communicate the increase clearly, but then fail to update their systems consistently. The result is billing at the old rate by mistake or payments that auto-collect the wrong amount, which can erode the customer trust you just built.
The fix is treating the price increase as an operational event rather than a set of disconnected updates across your tech stack.
Ignition makes it easy to implement price increases. The platform centralizes proposals, contracts, billing, and payment collection so that when you update a rate, it flows through to everything automatically. Update your service library, send the new proposal, have the client sign, and the new pricing is locked in across every downstream system.
Here’s how the platform compares to a manual approach:
Manual approach
Ignition automated workflow
Update each client agreement individually
Bulk-update pricing across multiple proposals at once
Risk billing at the old rate by mistake
New rate auto-populates in invoices and payments on the effective date
Chase clients for payment after a rate change
91% of payments collected automatically upfront
Hours spent on admin during renewal season
Renewals trigger with a prompted price review built in
Inconsistent messaging across agreements
Standardized templates ensure every client sees the same language
Prepare answers to common objections
Even when you've communicated a price increase well, some clients will push back. Preparation is what keeps you from making hasty discounting decisions just to end an uncomfortable conversation.
Set up price increases that stick
Update your contracts, invoices, and payments in one automated workflow.
When a client questions the new rate, the instinct is to explain costs again.
A more effective response redirects to results. Clients often forget how much value they're receiving, and a reminder shifts the frame from "this costs more" to "this delivers a lot."
Before any price conversation, have two or three concrete examples ready:
"Last year, we saved you X hours per month on bookkeeping."
"We identified $X in deductions during your tax filing."
"We helped you close your books three weeks faster than the previous year."
Even something as simple as preparing a balance sheet involves collecting information, reconciling accounts, and making legislative adjustments. Helping clients see the full scope of what goes into your work reframes the conversation from cost to investment.
Know when to hold firm (and when to offer options)
Some clients will express frustration, hint at leaving, or ask for exceptions. The right response depends on the situation, but as a default, maintaining the increase is usually the best business decision.
A useful model response that's both confident and empathetic: "I understand this is an adjustment, and I'm confident the value supports it."
That said, if a long-term client is genuinely struggling, you have options that don't require backing down entirely:
Phased increase: Apply half the increase now and the full rate in six months.
Adjusted scope: Explain that you can charge their current rate, but the scope of work will be reduced.
That said, don’t offer discounted rates prematurely. Lead with the full rate. If a client pushes back meaningfully, you can introduce options, but frame them as accommodations.
Automate future increases with AI insights
A well-handled price increase this year is a good start, but a firm that raises rates confidently every year (and ideally without any anxiety!) is in a fundamentally stronger position. To get there, you need to stop treating price increases as one-off events and start building them into your operating rhythm.
Ignition's AI-powered Price Insights replace guesswork with data, showing how your pricing compares across similar clients, services, and market benchmarks. That way, you know where you're undercharging and where you're aligned.
And since these insights tie to real engagement data, you can connect rate increases directly to the value you deliver, which makes it easier to justify decisions internally and communicate them externally with confidence.
Practically, this means:
Bulk proposal and renewal updates: Change pricing across multiple clients at once during annual review periods.
AutoPricing and automated renewals: Build price increase clauses directly into renewal workflows so rates adjust automatically when agreements roll over.
Template standardization: Pre-built service and pricing templates ensure every client agreement consistently reflects updated rates.
Integrated billing and payment collection: Once pricing is updated, invoices and payment collection automatically reflect the new rate, eliminating discrepancies.
Strengthen trust and cash flow as you raise prices
Effective price increase communication comes down to four things:
Timing that respects billing cycles
Personalization that reflects the relationship
Clarity that leads with facts
Operational follow-through that ensures the new rate is collected
Firms that combine all four reinforce their professionalism and deepen client trust. Clients who feel respected during the process are more likely to renew and accept future increases without resistance.
Ignition brings all the moving pieces together: proposals, contracts, billing, and payment collection in a single automated workflow. With 91% of payments collected automatically and customers saving an average of 18 hours monthly on admin, everything runs smoothly. The increase gets communicated clearly, documented properly, and collected on time.
Make your next price increase your smoothest yet
Ignition's platform brings together proposals, contracts, billing, and payments in one place.
Honor the original rate for the current project scope and apply the increase to future work or renewals, providing clear guidance on timing. Confirm the cutoff and new rate in writing to avoid confusion about what changes and when, and emphasize documentation.
Grandfathering can reward loyalty (but often erodes profitability over time), acknowledging both the relationship benefit and the business risk. A smaller increase or a phased adjustment usually protects the relationship without creating a permanent pricing gap, offering a middle-ground solution.
Yes, selective increases are common and can be easier for clients to accept, validating this approach. Clearly explain which services are affected and why in your price increase notification to customers, connecting to the communication principles covered earlier.
Increasing your prices? Read this practical blog to navigate the process effectively. Includes free email templates.
Unfortunately, Ignition doesn't support payments in South Africa, but it's something we're working on in the future.
You'll still be able to engage clients seamlessly with online proposals and automated engagement letters, and run your business on autopilot by connecting apps to Ignition.
