Raising Your Rates for 2027? Start the Conversation in November
Most CEOs decide to raise their rates in January and then wait another year because it feels too late to tell clients. Here's how to use November to check your numbers, set your new rate and have the conversation without the guilt.
Every year, somebody tells me the same thing in January: "I really need to raise my prices."
And every year, a lot of those same CEOs are still charging the old rate in June. Not because they changed their minds. Because January came, the invoices went out, and the conversation felt too awkward to start mid-stream.
Here's the truth. If you want a new rate on January 1, the work starts now. November is when you check your numbers, choose your number and give your clients enough notice to say yes.
Undercharging doesn't just cost you money. It costs you time, energy and the room to grow. Let's fix it on purpose.
- Pull your real cost to deliver each service, including your own hours.
- Set a planned monthly owner's pay before you set your rate.
- List the costs you expect to go up in 2027.
- Choose your new rate and the date it starts.
- Decide whether current clients move over on the same date as new clients.
- Review client agreements for set terms or notice periods.
- Send a short, warm rate notice in November.
- Give every extra dollar a job: owner's pay, cash cushion or tax savings.
Why Undercharging Feels Safe (And What It Really Costs)
Most high-achieving women I sit across from aren't undercharging because they don't know their worth. They're undercharging because the old rate feels safe. Nobody complains. Nobody leaves. Nobody asks hard questions.
But safe has a price. When your rate doesn't cover your real costs, you make up the difference with your own hours. You take on more clients to hit the same income. You pay everybody else first and pay yourself last.
That isn't a pricing problem on paper. It's a money stress problem in real life. And it shows up as late nights, a thin bank balance and a business that needs all of you just to stay where it is.
Step 1: Let Your Numbers Pick the Rate
Your new rate should come from your numbers, not from a feeling or what someone else charges. Before you choose anything, look at three things:
What it really costs you to deliver. Software, team time, materials, and the hours you personally put in. Many CEOs forget to count their own time at all.
What you need to pay yourself. Not what's left over. A real, planned owner's pay that you can count on every month.
What your costs will look like next year. If your software, payroll or other expenses are going up in 2027, your pricing has to account for that before January, not after.
When you put those three side by side, the number usually becomes clear. And when the number comes from your books, it's a lot easier to say out loud.
Step 2: Decide Who Gets the New Rate and When
You don't have to roll out one rate to everyone on the same day. You get to decide.
Some CEOs start new clients at the new rate right away and move current clients over on January 1. Others give long-time clients a little more time. Either can work. What matters is that you decide on purpose, write it down and stick to it.
Also check your agreements. If a client contract has a set term or notice period, honor it. A rate increase should never surprise someone who signed something different.
Step 3: Tell Clients Early, Clearly and Without Apologizing
The best rate conversation is short and confident. Give your clients real notice, so November is the sweet spot for a January change.
Keep the message simple:
Thank them for working with you. Share the new rate and the date it starts. Tell them what stays the same, or what's getting better. Invite questions.
What you don't need is a long explanation, a list of your expenses or an apology. You are not asking permission. You are giving a heads-up, the way any well-run business does.
Some clients may decide it's not the right fit anymore. That's okay. A rate that fits your business makes room for the clients who value what you do.
Step 4: Plan What the Extra Money Will Do
A rate increase is not a finish line. If the extra money just disappears into everyday spending, you'll be right back here next year.
Before January, decide where it goes. Maybe it raises your owner's pay. Maybe it builds your cash cushion. Maybe it sets aside more for taxes so April isn't a surprise. Give every new dollar a job before it shows up.
That's the difference between charging more and actually keeping more.
Ready to Price With Confidence?
If you're not sure your current rates are working for you, start with the numbers. The THL CEO Financial Health Check™ shows you where your money is really going so you can make your 2027 pricing decision with clarity, not guesswork.
Frequently asked questions
How much notice should I give clients before a rate increase?
Give enough notice that clients can plan for it. For a January 1 change, sending your notice in November gives most clients time to adjust. Always check your agreements first, because some contracts spell out a specific notice period.
What if I lose clients when I raise my rates?
Some clients may move on, and that's part of building a business that pays you properly. When your numbers are right, you may need fewer clients to reach the same income, which gives you more room to serve the ones who stay.
Should I explain why I'm raising my prices?
Keep it short. Thank them, share the new rate and start date, and tell them what they can count on. You don't need to justify your expenses or apologize for running a healthy business.
Tabitha Lewis, MBA
Founder & CEO of THL Ultimate Solutions in Raleigh, NC. Business & Tax Strategist, TEDx speaker and author of Rise Stronger. Tabitha helps established business owners reduce taxes, increase profits and build long-term business wealth.
More about Tabitha →This article is for general education and is not tax, legal or financial advice for your specific situation.
