How do you decide when and by how much to increase billing rates? My firm just released a new suggested rate sheet for next year and my suggested rate went up by $150 for new clients. I’m obviously not going to start charging existing clients an extra $150 an hour, but what would be reasonable? Do one larger increase and then leave it alone for a few years, or do a series of smaller yearly increases? Any other thoughts?

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We raise rates every two years. Be careful billing different clients different rates. If a new client finds out you are charging other clients $150/hour less, they’ll be pissed.

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Biglaw raises rates 5-7 percent each year. Like clockwork. Every time there’s an associate pay increase, their rates go up as well.

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if I start to get really busy with new clients practically breaking down the door then I increase my rate. The higher the demand the higher the fee.

I’ve raised rates consistently over the last 3 decades, but always strategically. A superstar associate may get a 20% increase, while a not so great associate gets a lower or null increase that year. It’s all about balance and ultimate value to the client. If you do it well, clients should not even notice or mention it.

We upped by $100 for the past 3 years.

Does it matter? Charge the clients what you agree to or the rack rate and move on. I don’t think mine really notice tbh.

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