How do I raise prices on existing clients without losing them?
Vendor costs rise every year. MSPs that never raise prices quietly lose margin until good clients become unprofitable.
- Our costs went up but prices didn't.
- How much notice should we give?
- What if clients push back?
Start with margin by client so you know who's below target. Give written notice, typically 60 to 90 days or whatever your agreement requires, and explain what changed, such as vendor costs, security tools and support levels. Offer options: accept the new price, move to a different tier or adjust scope. Deliver the news personally to key clients, ideally in a QBR.
Steps
| Step | What |
|---|---|
| Margin review | Find clients below target margin |
| Agreement check | Notice periods and escalation clauses |
| Message | Why, what's included, options |
| Delivery | Key clients in person, others by letter |
| Follow-up | Answer questions, confirm choices |
What to say
Be direct and specific: what's changing, when and why, and what the client gets. Avoid apologizing or blaming vendors entirely.
Add an escalation clause
For new agreements, include an annual adjustment clause so future increases aren't a surprise.
How we look at it at ShoutEx
We help write the letters and set up the tracking. Our guide to raising prices covers more.
- No increase in years.
- Surprise invoices.
- Same increase for all regardless of margin.
- No options offered.
- Margin by client.
- Written notice.
- Clear reasons.
- Escalation clauses in new agreements.
What MSP owners and guidance say
Here is what MSP owners say.
Microsoft pricing and bundles change; check current licence costs before setting new prices.
See Microsoft's page →Community summaries describe recurring themes in public threads, not individual posts. Vendor pages describe vendor claims, so test them on your own calls.
Read next
Go deeper in the ShoutEx guides, or check the sources behind this answer.
We'll help write the message and plan the rollout.
Book a call →Follow-up questions
How big an increase is reasonable?
Base it on your costs and value delivered.
Will clients leave?
Some may. Unprofitable clients leaving isn't always bad.
Should we raise prices before a QBR?
Use the QBR to explain it.