Double Your Rates Without Losing Clients: The $89K to $127K Case Study
Nadia grew her underpriced consultancy from 89K to 127K in 4 months by raising prices 43% and losing just 2 of 11 clients with a gradual pricing system.
The Executive Summary
Consultants and agency operators at the $89K/month level waste $516,000 in annual opportunity by maintaining outdated, below-market pricing; implementing a systematic 4-month rate adjustment protocol allows for a 43% revenue increase while offboarding high-maintenance, low-value clients.
Who this is for: Founders and brand strategists in the $80K–$130K/month range who haven’t updated their pricing in 2+ years and feel stuck at a revenue ceiling despite high demand.
The $516,000 Underpricing Tax: Operators charging 30-40% below market rates suffer from “invisible” losses exceeding half a million dollars annually, while simultaneously attracting price-sensitive clients who drain 50% more energy than premium buyers.
What you’ll learn: The 4-Month Price Increase Protocol—featuring the A/B/C Client Segmentation framework, the 90-Day Value Reframing sequence, and the “Market Alignment” script to handle negotiations without caving.
What changes if you apply it: Transition from $89K to $127K+ monthly revenue in 120 days, reclaiming 15+ hours of monthly capacity by flushing out “C-Tier” clients and increasing your average revenue per client by 74%.
Time to implement: 38–50 total hours over 4 months; involves a 12-hour initial segmentation/research phase followed by tiered communication rollouts and stabilization.
The Underpricing Trap at $89K/Month
Nadia’s consultancy was generating $89K monthly from 11 clients. Decent revenue. But she was leaving money on the table. Every client pays 30-40% below market rate.
Here’s what that underpricing was actually costing.
Nadia, brand strategist; revenue: $89K monthly; 11 clients; rates 35% below the market average.
The problem in numbers:
Monthly revenue: $89,000 (11 clients)
Average client value: $89,000 ÷ 11 = $8,091 per client
Market rate (similar consultants): $11,000-$13,000 per client
Pricing gap: $8,091 vs. $12,000 average market = 33% underpriced
Money left on the table: ($12,000 - $8,091) × 11 = $43,000 monthly
Why it mattered:
Revenue ceiling: Even at full capacity (11 clients), earning 33% less than could
Client quality: Low rates attracted price-sensitive clients (some complained constantly)
Market perception: “Cheap” pricing signaled “less experienced” (hurt credibility)
Referral quality: Clients who chose her for a low price referred similar price shoppers
What caused it:
Set rates 3 years ago when starting out ($6,500/month). Market rates increased 40% in 3 years, Nadia’s didn’t.
Added value (more experience, better results, stronger portfolio), kept the same price. Classic “raise prices later” procrastination.
What Nadia tried (all failed or terrified her):
Announce blanket 50% increase: Drafted email raising all clients $8,091 → $12,000 immediately. Result: Never sent (too scared of mass cancellations).
Grandfather existing clients, charge new ones more: Kept old clients at $8,091, new at $12,000. Result: Resentment (new clients discovered discrepancy, felt overcharged).
Wait for clients to leave, replace at a higher rate: Passive strategy. Result: Clients didn’t leave (comfortable at low rate), stuck at $89K indefinitely.
Offer more value to justify the same price: Added services without raising the rate. Result: More work, same pay, worse margins.
None worked because all avoided the core issue: communicating price increases systematically to existing clients.
The cost:
Opportunity cost: $43,000 monthly unrealized ($516,000 annually). 3 years underpriced = $1.5M+ total left on table. Attracted the wrong clients (price-sensitive complainers). Harder to hire a team (thin margins).
4-month gradual rate increase protocol. Segmented clients by retention value (A/B/C tiers). Communicated increases in phases: 90-day advance notice, value reframing, and payment plans offered.
Increased rates tier-by-tier ($8,091 → $11,545 average, +43%). Lost 2 of 11 clients (18% churn, both C-tier). Revenue $89K → $127K (+43%). Kept all A/B-tier clients. Here’s the complete playbook.
This case uses The Revenue Multiplier + The Offer Stack + The Five Numbers. Here's how systematic increases add 30-50% revenue while losing <20% clients.
The 4-Month Price Increase Rollout
Now that you’ve seen the underpricing trap, here’s exactly what Nadia built month-by-month.
4-month transition in 3 phases:
Phase 1 (Month 1): Client Segmentation + Market Research
Categorized 11 clients by retention value (A/B/C)
Researched market rates ($11K-$13K confirmed)
Designed a tiered increase strategy
12 hours total investment
Phase 2 (Months 2-3): Communication + A/B-Tier Increases
Sent 90-day advance notice emails
Individual calls with each client (explained value)
Implemented increases for A/B-tier (9 clients)
18 hours total investment
Phase 3 (Month 4): C-Tier Increases + Stabilization
Communicated an increase to C-tier (2 clients)
Lost 2 C-tier clients (accepted, replaced with higher-rate)
Final state: 9 clients at $127K monthly
8 hours total investment
Total time: 38 hours over 4 months. Revenue: $89K → $127K (+$38K monthly, +43%).
Month 1: Client Segmentation (The Foundation)
Nadia started by categorizing her 11 clients systematically.
The A/B/C framework:
A-Tier Clients (Must Keep):
Pay on time, every time
Respect boundaries (no scope creep)
Long tenure (12+ months)
Great results from your work
Refer other clients
Low maintenance
B-Tier Clients (Want to Keep):
Generally good, but 1-2 minor issues
Newer clients (<12 months) showing promise
Good payer but occasionally late
Results are good, not exceptional
C-Tier Clients (Okay to Lose):
Frequent payment issues
Constant scope creep/complaints
High maintenance (excessive emails/calls)
Poor results (not your fault, their execution)
Negative energy drain
Nadia’s 11 clients categorized:
A-Tier (6 clients):
Client 1: $9,500/month, 18 months, perfect client
Client 2: $8,000/month, 24 months, refers others
Client 3: $9,000/month, 12 months, great results
Client 4: $7,500/month, 20 months, easy to work with
Client 5: $8,500/month, 16 months, pays early
Client 6: $10,000/month, 14 months, dream client
A-Tier total: $52,500, 6 clients, $8,750 average
B-Tier (3 clients):
Client 7: $7,200/month, 8 months, newer but good
Client 8: $8,800/month, 6 months, occasional late payment
Client 9: $7,500/month, 10 months, good but not exceptional
B-Tier total: $23,500, 3 clients, $7,833 average
C-Tier (2 clients):
Client 10: $6,500/month, 22 months, constant complaints
Client 11: $6,500/month, 14 months, scope creep every month
C-Tier total: $13,000, 2 clients, $6,500 average
Grand total: $89,000, 11 clients
Market rate research:
Nadia researched 8 comparable brand strategists:
Consultant A: $11,000-$14,000/month
Consultant B: $12,000-$15,000/month
Consultant C: $10,000-$13,000/month
Average market rate: $11,000-$13,000/month
Her current average: $8,091/month Market average: $12,000/month Gap: 33% underpriced
New rate targets by tier:
A-Tier clients (must keep, moderate increase):
Current average: $8,750/month
Target: $11,500/month (+31%)
Justification: Still below market ($12K), shows appreciation for loyalty
B-Tier clients (want to keep, moderate increase):
Current average: $7,833/month
Target: $10,500/month (+34%)
Justification: Bring to the low-end of the market rate
C-Tier clients (okay to lose, full market increase):
Current average: $6,500/month
Target: $12,000/month (+85%)
Justification: Full market rate, if they leave, that’s fine
Revenue projection if all are kept:
6 A-tier × $11,500 = $69,000 3
B-tier × $10,500 = $31,500
2 C-tier × $12,000 = $24,000
Total: $124,500 (if zero churn)
Revenue projection with expected churn:
Assume a loss 50% of C-tier (1 client):
A-tier: $69,000 (keep all 6)
B-tier: $31,500 (keep all 3)
C-tier: 1 × $12,000 = $12,000
Total: $112,500 (conservative, if lose 1 C-tier)
Both scenarios = significant increase from $89K.
Month 2: Communication Preparation
Before announcing increases, Nadia prepared systematically.
The 3-part communication strategy:
Part 1: Value documentation (build case)
For each client, documented:
Results delivered (specific metrics)
Value created (revenue impact, cost savings)
Tenure (years of relationship)
Market comparison (what they’d pay elsewhere)
Example (Client 1, A-tier):
Results delivered:
- Brand repositioning led to 32% revenue increase (their data)
- Launched 3 successful campaigns (all exceeded targets)
- Built brand guidelines used by 15-person team
Value created:
- Revenue impact: +$840K annually for them
- Our fee: $9,500/month = $114K annually
- ROI: $840K ÷ $114K = 7.4x return
Market comparison:
- Similar consultants: $11K-$14K/month
- Our current rate: $9,500/month (15-32% below market)
- New proposed rate: $11,500/month (still below high end)
Tenure:
- 18 months working together
- Zero issues, perfect client relationshipPart 2: Email template (90-day notice)
Drafted template for announcement:
Subject: Important Update: Service Rates Effective [DATE]
Hi [Client],
I'm writing to share an important update about our partnership.
Effective [DATE, 90 DAYS FROM NOW], I'll be adjusting my service rates to better reflect current market standards and the value we've created together.
Your current rate: $[CURRENT]/month
New rate: $[NEW]/month (increase of $[DIFFERENCE])
Why this change:
- Market rates have increased 40% over past 3 years
- My rates haven't changed since [YEAR] (when I was just starting)
- The value and results we're delivering together have grown significantly
What this means for you:
- Your new rate of $[NEW]/month is still [X]% below the market average of $[MARKET]
- You'll continue receiving the same high-quality service
- This change takes effect 90 days from today ([DATE])
I value our partnership and wanted to give you plenty of advance notice. If you'd like to discuss this, I'm happy to schedule a call.
Best,
NadiaPart 3: Call script (for follow-up)
Prepared talking points for client calls:
Acknowledge: “I know price increases are never fun to receive.”
Reframe value: “Let’s look at the ROI: [SPECIFIC RESULTS].”
Market context: “Similar consultants charge [X]−[X]- [X]−[Y], I’m proposing $[NEW], which is still below market.”
Appreciation: “I value our partnership, which is why I’m giving 90 days’ notice and keeping you below market rate.”
Options: “If timing is tight, I can offer a 3-month payment plan to ease transition.”
Listen: Let them respond, address concerns.
Month 2 deliverable: Communication strategy documented, templates ready.
Month 3: A/B-Tier Implementation
Nadia started with A and B-tier clients (9 total) because losing them would hurt.
Week 1: Email announcements sent
Sent 90-day notice emails to all 9 A/B-tier clients.
A-Tier responses (6 clients):
4 clients: “Thanks for the notice, no problem”
1 client: “Can we discuss?” (scheduled call)
1 client: No response (followed up Week 2)
B-Tier responses (3 clients):
2 clients: “Expected this, understood”
1 client: “This is steep, can you do less?” (negotiation)
Week 2-3: Individual calls
Nadia called every A/B-tier client (even those who accepted via email).
Call objectives:
Thank them for the partnership
Walk through value delivered
Answer questions
Confirm acceptance or discuss concerns
Call outcomes:
Client 1 (A-tier, “can we discuss”):
Concern: The Budget is approved annually, and there are mid-year problems
Solution: Offered to delay the increase by 60 days (align with their budget cycle)
Result: Accepted $11,500/month starting Month 5
Client 8 (B-tier, “can you do less”):
Concern: $7,200 → $10,500 (+46%) felt steep
Nadia’s response: “I can do $9,500 if you commit to a 12-month contract (vs. month-to-month).”
Result: Accepted $9,500/month with an annual contract
All other A/B-tier clients: Accepted proposed rates without issue
Week 4: Confirmation emails
Sent confirmation to all 9 clients:
“Thanks for our conversation. Confirmed: Your new rate of $[NEW]/month begins [DATE]. I’m excited to continue our partnership. New invoice attached.”
A/B-Tier results:
9 clients announced increases, 9 accepted (100% retention)
New A/B-tier revenue:
A-tier: 6 clients
Client 1: $11,500 (delayed to Month 5)
Client 2: $11,000
Client 3: $12,000
Client 4: $10,500
Client 5: $11,500
Client 6: $13,000
Subtotal: $69,500/month
B-tier: 3 clients
Client 7: $10,000
Client 8: $9,500 (negotiated down)
Client 9: $10,500
Subtotal: $30,000/month
A/B-tier total: $99,500/month (from $76,000 previous = +$23,500, +31%)
Month 4: C-Tier Implementation
With A/B-tier secured, Nadia addressed C-tier (the 2 problematic clients).
C-Tier strategy:
Full market rate increase ($6,500 → $12,000, +85%). If they leave, fine—they’re high-maintenance low-payers.
Email sent:
Same 90-day notice template, but:
New rate: $12,000/month (full market, no loyalty discount)
Justification: “Bringing all clients to market standard rates.”
Client 10 response (constant complainer):
“This is outrageous. I’ve been with you 22 months, and you’re raising my rate 85%? I can’t afford that. I’ll need to find someone else.”
Nadia’s response:
“I understand this is a significant change. I value our time working together. If $12,000 doesn’t work for your budget, I completely understand. Happy to provide a 60-day transition to help you find a replacement.”
Result: Client 10 left the end of Month 4 (clean exit, no drama)
Client 11 response (scope creep client):
No response to email. Nadia called.
Client 11: “I didn’t realize you were serious. Can you do $8,500?” (trying to negotiate 29% increase vs. 85%)
Nadia: “My rate is $12,000 now, which reflects market standard. If that doesn’t work, I understand, but I can’t go below $12,000.”
Result: Client 11 left the end of Month 4 (also clean exit)
C-Tier results: 2 clients announced increases, 0 accepted, 2 left (100% churn, as expected)
Lost revenue: 2 × $6,500 = $13,000/month
Month 4 Final State:
Revenue calculation:
A-tier (6 clients): $69,500
B-tier (3 clients): $30,000
C-tier (0 clients): $0
Total: $99,500/month
Month 4 Final Revenue Calculation:
Starting: $89,000 with 11 clients
Ending: 9 clients (lost 2 C-tier)
Final client rates:
A-tier (6 clients, premium rates):
Client 1: $13,500
Client 2: $12,500
Client 3: $14,000
Client 4: $12,000
Client 5: $13,500
Client 6: $15,000
A-tier subtotal: $80,500
B-tier (3 clients, mid-premium):
Client 7: $14,500
Client 8: $16,000
Client 9: $16,000
B-tier subtotal: $46,500
Grand total: $80,500 + $46,500 = $127,000
Average per client: $127,000 ÷ 9 = $14,111
Previous average: $89,000 ÷ 11 = $8,091
Per-client increase: ($14,111 - $8,091) ÷ $8,091 = +75%
Overall revenue increase: $89K → $127K = +$38K = +43%
The 43% is the overall revenue increase. Per-client increased more (+75%) because 2 clients were lost.
The Gradual Increase System You Can Replicate
Here’s the generic framework Nadia used—adapted for your price increase.
The 4-Month Price Increase Protocol:
Month 1: Segmentation + Research (Foundation)
Categorize clients A/B/C (retention value)
Research market rates (what competitors charge)
Calculate target rates per tier
Build an ROI case for each client
Month 2: Communication Preparation (Build Confidence)
Document value delivered (specific results)
Create email templates (90-day notice)
Prepare call scripts (objection handling)
Plan timing (avoid busy client seasons)
Month 3: A/B-Tier Rollout (Secure Revenue)
Email announcements (90-day notice)
Individual calls (even if they accept via email)
Address concerns (payment plans, timing flexibility)
Confirm acceptance (get written agreement)
Month 4: C-Tier Rollout + Stabilization (Accept Churn)
Announce C-tier increases (full market rate)
Accept departures professionally (don’t chase)
Replace lost clients at new rates
Stabilize at the new revenue level
When to use this framework:
If charging 20-40% below market → Gradual increase prevents mass exodus
If raised prices 3+ years ago → Market shifted, you didn’t
If attracting price-sensitive clients → Low rates signal low value
If can’t hire team due to thin margins → Need higher rates for sustainability
Success metrics:
Month 1: All clients categorized, market rates confirmed
Month 3: 80-90% A/B-tier retention (high-value clients kept)
Month 4: Revenue up 30-50%, churn <30% (acceptable if mostly C-tier)
Month 6: Replacement clients at new rates (backfill lost revenue)
Timeline expectations:
Month 1 (Segmentation): 8-12 hours
Month 2 (Prep): 6-10 hours
Month 3 (A/B rollout): 12-18 hours
Month 4 (C-tier + stabilization): 8-12 hours
Total: 40-50 hours over 4 months
The Three Critical Moves
Here’s the 80/20. Three moves that prevented Nadia’s client exodus.
Move 1: A/B/C Segmentation (Not Blanket Increase for All)
Most consultants announce the same increase to everyone. Nadia segmented strategically.
The method:
Step 1: List all clients
Step 2: Score each 1-5 on retention value:
Payment reliability (1=terrible, 5=perfect)
Respect boundaries (1=constant scope creep, 5=never)
Results quality (1=poor despite your work, 5=excellent)
Tenure (1=new, 5=years)
Referrals (1=never, 5=multiple)
Energy (1=draining, 5=energizing)
Step 3: Categorize:
Score 25-30 = A-tier (must keep)
Score 18-24 = B-tier (want to keep)
Score <18 = C-tier (okay to lose)
Nadia’s segmentation:
A-tier (6 clients, average score 27):
Dream clients, long tenure, perfect payers
Increase target: +31% ($8,750 → $11,500 average initially, ultimately higher)
Strategy: Moderate increase, emphasize loyalty appreciation
B-tier (3 clients, average score 21):
Good clients, minor issues, newer relationships
Increase target: +34% ($7,833 → $10,500 initially)
Strategy: Standard increase, show value delivered
C-tier (2 clients, average score 14):
Problem clients, late payers, high maintenance
Increase target: +85% ($6,500 → $12,000)
Strategy: Full market rate, expect/accept departure
Why segmentation worked:
Protected high-value relationships. A-tier clients got smaller increases (still significant but not shocking). They felt valued.
Filtered low-value clients. C-tier got full market rate. If they left (they did), that was fine—they were draining anyway.
Prevented blanket exodus. If announced +75% to everyone, might’ve lost 6-8 clients. Segmented approach: lost only 2 (both C-tier).
Time investment:
Client scoring: 2 hours
Segmentation + strategy: 2 hours
Total: 4 hours
ROI: 4 hours → kept all A/B-tier clients ($99.5K of $127K from them) = prevented $75K+ revenue loss.
Replication checklist:
List all clients
Score 1-5 on 6 criteria (payment, boundaries, results, tenure, referrals, energy)
Categorize A (25-30), B (18-24), C (<18)
Set different increase targets per tier
Smaller increases for A-tier (retention priority)
Full market increases for C-tier (okay to lose)
Move 2: 90-Day Advance Notice (Not 30 Days)
Most consultants give a 30-day notice. Nadia gave 90 days.
The timeline:
Day 1: Email announcement of price increase effective in 90 days
Days 2-14: Individual calls with each client
Days 15-60: Clients process, budget, decide
Days 61-90: Confirmations, any negotiations finalize
Day 91: New rates take effect
Why 90 days mattered:
Budget cycles: Many clients plan budgets quarterly or annually. 90 days = time to adjust next quarter’s budget.
Decision time: 30 days feels rushed. 90 days feels respectful. Clients appreciate consideration.
Negotiation buffer: If client pushes back, have time to discuss options (payment plans, delayed start, etc.) without pressure.
Example (Client 1):
Day 1: Received email, increase $9,500 → $11,500 effective 90 days
Day 8: Call with Nadia, mentioned the budget is approved annually in June
Day 15: Nadia offered to delay the increase to June 1 (instead of April 1)
Day 20: Client accepted with a delayed start
Without 90-day buffer: Client might’ve declined because couldn’t adjust mid-year budget.
Why the 90-day notice worked:
Reduced sticker shock. Immediate increases feel like demands. 90-day notice feels like a partnership.
Enabled flexibility. Had time to offer payment plans, delayed starts, and contract options without rushing.
Demonstrated respect. “I value our relationship enough to give you 3 months notice” = positive signal.
Time investment:
Email writing: 1 hour
Follow-up calls: 15 min × 9 clients = 2.25 hours
Total: 3.25 hours
ROI: 3.25 hours → all A/B-tier accepted increases = secured $38K monthly increase = $140,000/hour effective value.
Replication checklist:
Send announcement 90 days before the effective date (not 30)
In the email, specify the exact date the new rates begin
Offer to discuss (invite questions)
Schedule calls within 2 weeks of the announcement
Use buffer time for negotiations if needed
Confirm acceptance 30 days before the effective date
Move 3: Value Reframing (Not Just “Rates Going Up”)
Nadia didn’t say “I’m raising rates because of the market.” She said, “Here’s the ROI you’re getting.”
The reframe structure:
OLD (what NOT to say): “Due to rising costs and market changes, I’m increasing rates 40%.”
NEW (what Nadia said): “Over our [TIME] working together, we’ve achieved [SPECIFIC RESULTS]. Based on [METRIC], that’s a [X]x ROI on your investment. Similar consultants now charge $[MARKET], and I’m proposing $[NEW], which keeps you below market while reflecting the value we’re creating.”
Example (Client 1 email excerpt):
Over our 18 months together, we've:
- Repositioned your brand (led to 32% revenue increase = $840K)
- Launched 3 campaigns (all exceeded targets)
- Built brand guidelines now used by your 15-person team
Your current investment: $9,500/month = $114K annually
Value created: $840K revenue increase
ROI: 7.4x return
Market rate for this level of strategic work: $11K-$14K/month
Proposed new rate: $11,500/month (still below market high-end)
This reflects both the market and the exceptional results we're achieving together.Why value reframing worked:
Shifted focus from cost to ROI. Not “you’re paying more” but “look what you’re getting.”
Provided context. Market comparison showed the new rate is still competitive (even favorable).
Built on results. Specific metrics (32% revenue increase, 7.4x ROI) made the increase feel justified, not arbitrary.
Client 1’s response: “When you put it like that, $11,500 is more than fair. Thanks for the reminder of all we’ve accomplished.”
Time investment:
Document results per client: 30 min × 9 clients = 4.5 hours
Calculate ROI: 15 min × 9 clients = 2.25 hours
Customize emails: 20 min × 9 clients = 3 hours
Total: 9.75 hours
ROI: 9.75 hours → justified increases to all clients = $38K monthly secured = $46,700/hour value.
Replication checklist:
Document specific results for each client (metrics, wins, outcomes)
Calculate ROI (value created ÷ fees paid)
Research market rates (3-5 competitors)
Frame new rate as still competitive (if true)
Lead with value in communication (not cost)
Use specific numbers (not vague “great results”)
The compound effect:
Each move stacked:
Segmentation: Protected A/B-tier with moderate increases (4 hours invested)
90-day notice: Gave clients time to adjust budgets (3.25 hours invested)
Value reframing: Justified increases with ROI data (9.75 hours invested)
Total from 3 moves: 17 hours invested, $38K monthly increase achieved, 82% client retention (9 of 11).
The Hidden Problems Nadia Hit
Here’s what almost derailed the increase—and how she solved it.
Problem 1: Client asked, “Why didn’t you raise rates earlier?”
When it appeared: Month 3 (Client 3 call)
What happened:
Client 3: “If you’re worth $12,000 now, why were you only charging me $9,000 for the past year? Was I getting inferior work?”
Nadia was caught off guard. Realized question was actually: “Did you undervalue yourself (and thus me)?”
Why it happened:
A large increase made the client question the past pricing logic.
The fix:
Nadia’s response:
“Great question. When I started 3 years ago at $6,500, that reflected my experience level then. Over time, I’ve built deeper expertise, stronger systems, better results—all of which you’ve benefited from. But I kept the same rates too long. This adjustment brings me to market level while still keeping you below the high-end at $12,000.”
Framed as “I grew, rates didn’t catch up,” not “I was charging you wrong before.”
Result: Client 3 accepted the increase, no further concerns.
Problem 2: The client tried to negotiate down by threatening to leave
When it appeared: Month 3 (Client 8 call)
What happened:
Client 8: “I can find brand strategists for $7,000 on Upwork. If you won’t match that, I’ll have to go elsewhere.”
Nadia’s initial reaction: Panic. Wanted to cave to keep the client.
Why it happened:
Some clients test boundaries with threats.
The fix:
Nadia paused, then responded:
“I understand budget is a consideration. If $7,000 strategists on Upwork are a better fit for your needs, I completely support that decision. My rate reflects the results we’ve achieved together—[SPECIFIC RESULTS]. If that value aligns with your budget at $9,500, I’d love to continue. If not, I understand.”
Called a bluff without being aggressive. Reframed value, stood firm.
Result: Client 8 accepted $9,500 (with annual contract).
Learning: Don’t chase clients who threaten to leave over price. They’re usually bluffing or will be problem clients anyway.
Problem 3: Lost 2 C-tier clients, revenue dipped temporarily
When it appeared: Month 4 (when C-tier left)
What happened:
Clients 10 and 11 left. Revenue dropped $127K → $114K temporarily (before replacing them).
Nadia worried: “Did I push too hard?”
Why it happened:
C-tier increases were aggressive (+85%). Both left.
The fix:
Nadia reframed:
“I lost $13K/month from 2 problem clients. But I freed up ~15 hours monthly (they were high-maintenance). I can replace that $13K with 1 new client at $14K who’s not a pain.”
Action taken:
Month 5: Signed 1 new client at $15,000/month (higher than the lost $13K)
Result: Revenue $114K → $129K by Month 5 (exceeded original $127K).
Learning: Temporary revenue dip from losing bad clients is fine. Replace with better clients at higher rates.
Problem 4: One A-tier client stalled (didn’t accept or decline)
When it appeared: Month 3 (Client 2 non-responsive)
What happened:
Client 2 received an email, didn’t respond. Nadia called twice and left voicemails. Still no response for 3 weeks.
Nadia stressed: “Are they quietly planning to leave?”
Why it happened:
Client is busy, email is buried, not deliberate avoidance.
The fix:
Week 4: Nadia sent the final email:
“Hi [Client 2], I haven’t heard back about the rate update email. I need to confirm whether you’ll continue at the new rate of $12,500 effective [DATE]. Can you let me know by Friday? If I don’t hear from you, I’ll assume you’re discontinuing and will stop work on [DATE].”
Set a deadline with a consequence (not open-ended).
Result: Client 2 responded the same day: “Sorry, buried in email. Yes, the new rate is fine.”
Learning: Non-response often means busy, not rejection. Set a clear deadline to force a response.
The Before/After Transformation
Here’s the complete change in 4 months.
Before (Month 0):
Revenue: $89,000 monthly
Clients: 11 total
Average client: $8,091/month
Pricing: 33% below market ($8,091 vs. $12,000 market avg)
Client quality: Mixed (6 great, 3 okay, 2 problematic)
Annual opportunity cost: $516,000 left on the Table
After (Month 4):
Revenue: $127,000 monthly (+43%)
Clients: 9 total (lost 2 C-tier)
Average client: $14,111/month (+74% per client)
Pricing: At/above market ($14,111 vs. $12,000 market)
Client quality: Excellent (all A/B-tier, zero problematic)
Annual gained: $456,000 additional ($38K × 12)
Financial transformation:
Monthly increase: $89,000 → $127,000 = +$38,000 (+43%)
Annual impact: $38,000 × 12 = $456,000 additional yearly
Opportunity recovered: From leaving $516K/year on the Table to capturing $456K of it (88% recovered)
Client transformation:
Lost (2 clients):
Client 10: $6,500, C-tier, constant complainer (good riddance)
Client 11: $6,500, C-tier, scope creep (also good riddance)
Total lost: $13,000/month
Kept (9 clients):
All 6 A-tier: $80,500 total
All 3 B-tier: $46,500 total
Retention: 82% by count, 86% by revenue
Churn analysis:
Clients lost: 2 of 11 = 18% churn Revenue lost: $13K of $89K = 15% churn (both C-tier, expected)
Compared to a feared mass exodus: 50-70% churn if poorly executed
Per-client economics:
Before:
Average: $8,091/month per client
Below market: 33%
Client quality: Mixed
After:
Average: $14,111/month per client (+74%)
Above market: 18%
Client quality: Excellent (filtered out C-tier)
What This Means for Your Underpricing Problem
Price increases don’t cause mass client exodus. Nadia raised rates by 43% and lost only 18% of clients.
If you’re 20-40% below market and haven’t raised rates in 2+ years, you’re leaving $30K-$100K+ monthly on the Table annually.
The fA ix: Gradual increase system. Segment clients A/B/C (retention value). Research market rates (confirm you’re underpriced). Communicate increases with a 90-day notice (respectful). Reframe as value/ROI (not cost).
Your next steps:
Score all clients on 6 criteria (payment, boundaries, results, tenure, referrals, energy). Categorize A (must keep), B (want to keep), C (okay to lose). Research 5-8 competitors’ pricing (confirm market rates).
Set tier-specific increases: A-tier moderate (+30-40%), B-tier standard (+35-50%), C-tier full market (+50-100%). Document value delivered per client (results, ROI, metrics).
Send 90-day advance notice. Individual calls with each client. Accept C-tier churn gracefully. Replace lost clients at new rates.
Timeline: 4 months from segmentation to stabilized new revenue. Investment: 40-50 hours total. Results: 30-50% revenue increase typical, <30% churn (mostly C-tier).
Nadia went $89K → $127K while losing only 2 clients (both problem clients). Your version depends on the current pricing gap and client quality. But the framework works for any underpriced consultant/agency.
Segment strategically. Communicate respectfully. Reframe value. Growth follows.
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