Raising Your Prices and Protecting Your Time

One of the most satisfying signs that your business is working is the moment you realize you can charge more. But knowing when and how to raise prices — and how to protect your time as demand grows — is its own skill.

Most consultants wait too long to raise their prices. They undercharge for months or even years because they are afraid of losing clients, afraid of seeming greedy, or simply unsure about their own value. Meanwhile, they are working harder and harder for the same money while their skills, experience, and results continue to improve.

If that sounds familiar, this chapter is going to change how you think about pricing.

Signals That You Are Ready to Raise Your Rates

Before we talk about how to raise prices, let us talk about when. Here are the signals that tell you it is time:

• You're consistently getting more inquiries than you can handle. When demand exceeds your capacity, the market is telling you that your price is too low. Raising prices is a natural way to balance supply and demand.
• New prospects accept your price without negotiating. If no one ever pushes back on your rate, you are almost certainly underpriced. Some pushback is normal and healthy. No pushback means there is room to go up.
• You have clear case studies and testimonials proving your results. Evidence of impact gives you confidence and justification for higher rates. Once you can say "I helped Company X achieve Y result," your pricing power increases dramatically.
• It has been 6-12 months since your last price adjustment. Prices should increase over time as your experience deepens and your results improve. If you have not raised rates in a year, you are falling behind.
• You are working at capacity and considering turning clients away. This is the clearest signal of all. If you have to choose between clients, you should be choosing the ones who pay the most (and are the best fit).

How to Know Your Current Rate Is Too Low

Here is a quick diagnostic. Calculate your effective hourly rate: total monthly revenue divided by total hours worked — and I mean all hours, including admin, calls, marketing, and email. Not just the hours you spend on deliverables.

If that number is below $100/hour, you are almost certainly underpriced for any expertise-based consulting. If it is below $75/hour, you are making less per hour than you made in your corporate job, which defeats one of the key purposes of going independent. If it is below $50/hour, you are running a charity, not a business.

The target for established consultants in most fields is $150-$300/hour effective rate. That does not mean you charge by the hour — most consultants charge monthly retainers or project fees. But when you divide your income by your actual hours, that is the range you are aiming for.

How to Raise Prices Without Losing Existing Clients

Here's the approach that works for most consultants. It is a three-step process that balances revenue growth with relationship preservation.

Step 1: Raise Prices for New Clients Immediately

You don't need anyone's permission to charge more for new work. Update your proposals and conversations with the new number. The next prospect who asks about your rates gets the new rate. Period.

This is the easiest, least risky way to increase your revenue. No existing relationships are affected. No difficult conversations required. You simply decide that your work is worth more and price accordingly going forward.

Here is the psychological trick that makes this easier: do not think of it as raising your price. Think of it as correcting an error. You were undercharging. Now you are charging what the work is actually worth. That is not greed — that is accuracy.

Most consultants find that new prospects accept the higher rate without blinking. And the ones who push back? That pushback gives you useful information about where the market actually is.

Step 2: Grandfather Existing Clients for 90-180 Days

This protects the relationship. Tell them: "My standard rate for new clients is now [$X]. Your rate stays where it is for the next [timeframe], after which it will adjust to [$Y]." Most clients who are getting value will stay.

The grandfathering period matters because it demonstrates respect. You are not springing a price increase on them. You are giving them time to budget for it, evaluate the ROI of your work, and make a decision. The advance notice is a courtesy that almost every client will appreciate.

Here is a sample script for the conversation:

"I wanted to let you know about a change to my rates. Starting [date — 90 to 180 days from now], my monthly rate will move from [$current] to [$new]. This reflects the additional experience and capabilities I have developed over the past year. Your current rate will stay in place until then. I want to be transparent about this well in advance so there are no surprises. And I want to say — I really value our working relationship and look forward to continuing to deliver great results for you."

Notice what this script does: it announces the change clearly, explains the reason, gives advance notice, and reaffirms the relationship. It does not apologize. It does not ask for permission. It is confident and respectful.

Step 3: Tie the Increase to Something Real

Don't just announce a higher number — explain what's changed. "I've added [new capability], my results for clients have improved by [metric], and I've increased my rate to reflect that." People accept price increases when they can see the reason.

Here are ways to anchor your price increase to tangible improvements:

• New certifications or skills: "I completed my PMP certification, which allows me to offer more structured project management support."
• Better results: "Over the past year, my average client has seen a 35% improvement in [metric]. My rates now reflect that level of impact."
• Expanded scope: "I have added quarterly strategic reviews to my standard engagement, which provides more comprehensive support."
• Market positioning: "After benchmarking my rates against similar consultants in the market, I am aligning my pricing with the value I deliver."

You do not owe anyone a justification for your rates. But providing context makes the increase feel reasonable rather than arbitrary, and it significantly reduces pushback.

What If a Client Cannot Afford the Increase?

It will happen. Some clients genuinely cannot afford the new rate. Here are your options:

• Reduce scope. Offer a lower-priced tier with fewer deliverables or fewer hours. "I can offer a monthly advisory call plus email support for [$reduced rate], without the monthly deliverable."
• Offer a transition period. Give them 6 months at the old rate instead of 3. This buys them time to find budget or to demonstrate ROI to their leadership.
• Part ways gracefully. Not every client relationship needs to last forever. If a client cannot afford your new rate and reduced scope does not make sense, it is OK to end the engagement on good terms. Refer them to a more affordable alternative if you can.

The clients who leave because of a reasonable price increase were probably not your best clients to begin with. The ones who stay are confirming that your work is worth the investment. Over time, this naturally upgrades your client portfolio toward higher-value, higher-commitment relationships.

Protecting Your Time as You Grow

When you have eight or nine clients, time becomes your scarcest resource. Here are the boundaries that keep your business sustainable:

Set Office Hours

Tell clients when you're available and when you're not. Most clients respect boundaries when you set them clearly. Here is the key: set them from the beginning, during onboarding. It is much harder to establish boundaries with a client who has been emailing you at 10pm and getting responses than it is to set the expectation upfront.

A good framing: "I am available Monday through Friday, 9am to 5pm Eastern. I check email twice per day — morning and afternoon — and respond within one business day. For truly urgent matters, you can text me at [number], and I define urgent as [specific definition]."

The definition of "urgent" matters. Without it, everything becomes urgent. Define it explicitly: "Urgent means a situation that will cause significant financial harm or regulatory risk if not addressed within 24 hours." Most clients will never text you once they understand that boundary.

Batch Similar Tasks

Do all your client calls on two days per week. Write all your reports on one day. Batching reduces the mental switching cost that drains your energy.

Here is what a batched week looks like:

• Monday: Admin and planning. Review all client status, plan the week, handle invoicing and emails.
• Tuesday: Client calls. Stack them back to back with 15-minute breaks between. Aim to do all calls for the week on this day.
• Wednesday: Deep work. Reports, analyses, deliverables. No calls. No meetings. This is your most productive day.
• Thursday: Overflow client calls if needed, plus content marketing (LinkedIn posts, newsletter).
• Friday morning: Business development — outreach, referral follow-ups, networking.
• Friday afternoon: Wrap up loose ends, plan next week.

The power of batching is that you are only doing one type of work at a time. You are not switching between a client call, a report, an email, another call, and a proposal. Each of those switches costs you 15-20 minutes of refocusing time. Multiply that by 10 switches per day and you are losing 2-3 hours to context switching alone.

Say No to Scope Creep

When a client asks for something outside your agreement, it's OK to say: "I'd be happy to help with that. It's outside our current scope, so let me put together a separate proposal." This protects your time and your revenue.

Scope creep is the silent killer of consulting profitability. It starts small — "Can you also take a quick look at this?" — and gradually expands until you are doing 50% more work than you originally agreed to, for the same fee.

Here is how to handle scope creep conversations:

The request: "Hey, could you also help us with our marketing strategy? I know it's not exactly what we hired you for, but you seem to know about this stuff."

The wrong response: "Sure, I'll take a look." (This sets the precedent that extra work is free.)

The right response: "I would love to help with that. Marketing strategy is actually something I enjoy working on. It is outside the scope of our current engagement though, so let me put together a quick proposal for what that would look like as an add-on. I will have it to you by Friday."

Notice the right response is enthusiastic, not reluctant. You are not saying no to the work — you are saying yes to the work and yes to being compensated for it. Most clients completely understand this. The ones who push back are the ones who will drain your profitability if you let them.

Block Time for Growth

Reserve at least 5 hours per week for marketing, outreach, and business development. If you spend all your time delivering, you'll never grow. This is not optional — it is essential for the long-term health of your business.

Here is why this matters so much: consulting revenue is lumpy. Clients leave. Contracts end. Budgets get cut. If you are not constantly filling your pipeline, a single client departure can create a revenue crisis. The 5 hours you spend on marketing each week is insurance against that scenario.

What those 5 hours look like:

• 1 hour writing and scheduling LinkedIn posts for the week
• 1 hour commenting on and engaging with posts from people in your target market
• 1 hour following up with past prospects, leads, and referral contacts
• 1 hour on one growth project (building your newsletter, writing a case study, preparing a speaking proposal)
• 1 hour networking — attending a virtual event, having a coffee chat, or reconnecting with a former colleague

These activities feel less urgent than client deliverables, which is exactly why they get neglected. Block them on your calendar like a client meeting and protect that time ruthlessly.

The Pricing Evolution for Expertise-Based Businesses

Understanding the typical pricing trajectory helps you plan ahead and recognize when you are on track versus falling behind.

Year 1: $2,500-$3,500/month per client (building credibility and case studies)

In your first year, your pricing power is limited because you do not yet have consulting case studies or testimonials. Your rate is based primarily on your industry experience. This is normal and appropriate. Focus on delivering great work and building your evidence base. Every case study you create raises your pricing power.

Year 2: $4,000-$5,500/month per client (established track record, referrals flowing)

By year two, you have multiple case studies, a growing reputation, and a referral network. Your results speak for themselves. You can confidently raise rates because you have proof that your work delivers value. Clients at this tier are also typically better — more committed, more organized, more likely to implement your recommendations.

Year 3+: $6,000-$10,000/month per client, or project-based pricing at $15,000-$30,000 per engagement

At this stage, you are a known quantity in your niche. Inbound leads come regularly. You have the luxury of choosing your clients. Premium pricing attracts premium clients — the kind who respect your time, implement your advice, and stay for years.

Why Higher Prices Attract Better Clients

Higher prices don't just mean more money — they attract better clients. This is counterintuitive but consistently true. Here is why:

• Clients who pay premium rates are more committed. They have invested significant money, so they are motivated to get the most out of the engagement. They show up to calls prepared. They implement your recommendations. They take the work seriously.

• Higher-paying clients have more resources. They can act on your advice. They have the team, budget, and infrastructure to implement changes. Lower-paying clients often cannot execute, which means your work does not produce results, which means they eventually conclude consulting does not work.

• Premium clients respect boundaries. They understand that your time is valuable because they are paying a premium for it. They are less likely to send late-night emails, make last-minute requests, or push for free extras.

• Higher prices create healthy selectivity. When you charge more, fewer prospects say yes. But the ones who do say yes are the ones who are most serious and most likely to be great clients. Pricing is a filter, and higher prices filter for better clients.

Industry-Specific Pricing Guidance

If you came from Government:

Government consulting rates vary enormously based on clearance requirements and contract vehicles. If you have an active security clearance, your rates can be 30-50% higher than comparable work without clearance. If you work with firms that hold government contracts, your rate is often dictated by labor category rates in the contract — but you can negotiate your cut. By Year 2, government consultants with clearance often bill at $200-$300/hour through contracting firms.

If you came from Big Tech:

Tech consulting rates for experienced FAANG alumni start high and stay high. If you are helping startups with technical architecture, product strategy, or engineering leadership, $300-$500/hour is not unusual by Year 2-3. Project-based pricing works especially well in tech: "$25,000 for a 4-week architecture review" is a common and well-understood engagement model.

If you came from Healthcare:

Healthcare consulting commands premium rates because the stakes are high and the expertise is specialized. Regulatory compliance consulting, operational improvement, and clinical workflow optimization all command $200-$400/hour once you have established credibility. The long sales cycle in healthcare is offset by long engagement durations — 12-24 month contracts are common.

If you came from Finance:

Fractional CFO work is one of the highest-paying consulting niches. Companies that cannot afford a full-time CFO (typically $200K-$400K/year in salary) gladly pay $3,000-$8,000/month for fractional support. That is $36,000-$96,000/year per client. With 5-7 clients, you are looking at $180,000-$672,000/year in revenue. The key is positioning yourself as a fractional CFO, not a "finance consultant" — the title matters for pricing.

Exercise: Your Pricing Power Assessment

Set aside 20 minutes for this exercise. Be honest with yourself — the goal is clarity, not ego protection.

Part 1: Calculate Your Effective Hourly Rate

Total monthly revenue: $
Total monthly hours worked (everything — deliverables, calls, admin, marketing): ___
Effective hourly rate (revenue / hours): $

Is that number where you want it? If not, identify the gap.

Part 2: Pricing Power Inventory

List your pricing assets — the things that justify higher rates:

• Number of client case studies: ___
• Number of testimonials: ___
• Average measurable result you deliver: ___
• Certifications or credentials: ___
• Years of industry experience: ___
• Notable companies you have worked with: ___

The more of these you can fill in, the more pricing power you have. If your inventory is thin, building it should be a priority for the next 90 days.

Part 3: One Action This Week

Identify one action you can take this week to increase your effective hourly rate. Options include:

• Raise prices for new clients by $500/month
• Eliminate one low-value administrative task (delegate or automate it)
• Send a price increase notice to your longest-tenured client with 90 days of advance notice
• Create one new case study to strengthen your pricing justification
• Reduce time spent on one client by implementing a template or system

Pick one. Do it this week. Not next week. This week.

Part 4: Your 12-Month Pricing Goal

Where do you want your effective hourly rate to be in 12 months? Write it down. Then reverse engineer what needs to happen to get there: How many clients at what rate? What case studies do you need? What boundaries need to change? This becomes your pricing roadmap for the year.

The Mindset Shift Behind Pricing Confidence

Let me close with this. The biggest barrier to raising your prices is not the market. It is not your clients. It is not the economy. It is your own belief about what you are worth.

Many displaced workers, especially those who were laid off unexpectedly, carry a wound. The layoff felt like the market saying "you are not valuable enough." That experience can make you undercharge because somewhere in the back of your mind, you are grateful that anyone is willing to pay you at all.

Recognize that story for what it is: a story, not the truth. The truth is that your expertise has enormous value. The truth is that companies need what you know. The truth is that your years of experience solve problems that save businesses real money. The layoff was not a verdict on your worth — it was a business decision made by someone else for reasons that had nothing to do with your talent.

Price accordingly.

Key Takeaways:

• Raise prices for new clients first, then grandfather existing clients with advance notice
• Tie price increases to visible improvements in your capability or results
• Protect your time with office hours, batched work, and clear scope boundaries
• Reserve at least 5 hours per week for growth and marketing — delivering alone won't grow your business
• Higher prices attract better clients who are more committed and easier to work with
• Your pricing power increases with every case study, testimonial, and documented result