Let’s be honest: price increases scare accountants and payroll providers. Not because they don’t understand the need for them, but because they fear the backlash from clients. What if clients complain? What if they leave? What if they start questioning the value of your service?
But here’s the reality: the real fear should be what happens if you DON’T raise your prices.
When you avoid price increases, you’re not just missing out on revenue—you’re undervaluing your expertise, undermining your confidence, and setting a dangerous precedent that your service isn’t worth more than what you initially charged. The longer you put it off, the harder it gets, and the more your business suffers in the long run.
Under-Pricing is the Real Problem
As discussed in Price Increases: Know Your Worth - Price for Value, Not Just Service, many accountants and payroll providers price based on what they think clients will accept, rather than what their service is truly worth. This is a slippery slope.
Think about what you actually provide:
You ensure compliance and avoid costly fines for clients.
You process payroll accurately and on time, keeping their team happy.
You offer peace of mind, reliability, and expert advice.
This isn’t just number-crunching—it’s business-critical work that deserves appropriate compensation.
Clients Value You More Than You Think
One of the biggest myths about pricing is that clients will instantly revolt when you increase fees. The truth? Most clients expect price increases.
Here’s what you need to remember:
Fear is normal – but don’t let it paralyse you.
Most clients understand – everything else in their business goes up in cost; payroll services should be no different.
Confidence is key – presenting the increase unapologetically shows professionalism and self-respect.
Retention is about value, not just price – clients stay because they trust you, not because you’re the cheapest option.
If your clients genuinely value what you do, they won’t leave over a reasonable price increase. And if they do? They may not be the right fit for your business.
How to Raise Prices the Right Way
If you’re ready to price for value instead of just covering costs, here’s how to do it smoothly:
1. Start Small, Then Expand
Rather than increasing all clients at once, test a small group first. This allows you to fine-tune your messaging and gauge reactions before rolling it out further.
2. Check Your Contracts
Many service agreements include clauses allowing for annual price increases to reflect inflation and rising costs. If yours don’t, it’s time to update them moving forward.
3. Give Notice and Context
Communicate increases at least 60–90 days in advance. Frame it as part of your commitment to providing high-quality service and staying ahead of industry changes.
Example Script:
“We’ve loved supporting your business with payroll, and we remain committed to delivering the high-quality service you expect. To continue providing expertise, compliance, and care, we are updating our pricing. From [date], your new rate will be [amount].
We’re here to answer any questions and ensure payroll remains stress-free for your business.”
4. Focus on Value, Not Just Cost
If you’ve enhanced your service—better software, improved compliance, additional HR support—make sure clients know. They’re not just paying for payroll processing; they’re paying for expertise, reliability, and peace of mind.
5. Bundle Services for More Value
Price increases are a great opportunity to introduce packages that include added value, such as HR support or payroll forecasting.
6. Practice the Conversation
Rehearse your messaging so you can confidently present the price change without over-apologizing or backtracking.
Price with Purpose
Raising prices isn’t about squeezing more money out of clients—it’s about aligning fees with the true value you provide. By pricing strategically and communicating effectively, you ensure your business remains profitable, sustainable, and respected.
If you don’t raise your prices, you’re putting your business at risk. Clients who appreciate your service will stay, and those who don’t may not be worth keeping.
Action Points:
✅ Start with a small client segment to test pricing adjustments.
✅ Prepare clear messaging that highlights added value.
✅ Give clients plenty of notice and explain the reasoning professionally.
✅ Make price reviews an annual process.
When you price with confidence, you attract the right clients—those who understand your worth and are willing to pay for it. Your business (and your confidence) will thank you.
Ready to Take Action?
If you're struggling to raise your prices or unsure how to communicate the value behind them, let's talk. Book a Coffee With Austin w tand take the first step toward pricing with confidence.
Don't let fear hold you back—your expertise is worth it!
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