The Rate Increase That Worked vs. the One That Didn’t: What Made the Difference

Practitioners who have attempted a rate increase more than once often have a clear memory of one that did not hold alongside one — or the hope of one — that did. The difference between the two is almost never the market. The market is usually not the determining factor. What determines whether a rate increase holds is almost always located in the practitioner — specifically in three areas: inner preparation, communication clarity, and consistency during the holding period.

What nobody explains about rate increase success and failure is that the market will not rescue a poorly prepared rate increase, and it will not sink a well-prepared one. The market is a context. The practitioner is the variable.

The Rate Increase That Didn’t Hold

Here is what this often looked like.

Before the announcement: The practitioner decided on a rate, felt uncertain about it, and announced it before genuinely settling into the number. The announcement was made from hope — the hope that once the rate was said out loud, it would become real. There was insufficient preparation: no documented outcome review, no internal anchoring of the number, no pre-decided policy on exceptions.

The announcement: The communication was either over-explained (the practitioner listed every reason the rate was warranted, inadvertently inviting the client to evaluate each one) or under-prepared (the practitioner stated the rate but braced visibly when doing it, signaling uncertainty).

The holding period: The patterns that produce failure: the first client who pushed back received a concession — either the old rate, a discount, or a grandfathering arrangement that was not part of the original plan. This exception was made in the moment, under pressure, and felt generous. The second exception was slightly easier to make. The third established the pattern. Within a few months, the stated rate was not the actual rate.

The Rate Increase That Held

Here is what this often looked like.

Before the announcement: The inner preparation that produces success: the practitioner did the inner work before the external move. They reviewed their outcomes from the past year and could articulate specifically what the work had produced. They sat with the new number until it stopped producing a visceral reaction. They decided in advance who, if anyone, would be grandfathered and under what conditions.

The announcement: The communication was direct, warm, and clear. “My rate is changing to X, effective on this date.” It was not long. It did not over-justify. It gave adequate lead time. It was sent to all clients consistently, not to some and not to others.

The holding period: The holding period that determines whether it works: when the first client pushed back, the practitioner acknowledged the response without reversing the rate. “I understand this is a change” — and then the rate stood. The second pushback was handled the same way. The third pushback, when it came, was easier. By the fourth and fifth, the practitioner was genuinely in the rate and the pushback had mostly stopped.

The Common Denominator

Both scenarios came down to the same variable: the quality of the practitioner’s inner relationship to the new number before and during the announcement period. The rate increase that worked was held by a practitioner who was genuinely in it. The one that did not work was held — or not held — by a practitioner who was hoping the outer change would produce inner conviction.

How to recover after an unsuccessful increase: the pattern of an unsuccessful rate increase is not permanent. It is a set of behaviors that can be changed once they are recognized and the inner preparation is done more completely.

A rate increase that holds is not the result of finding the right clients or the right market moment. It is the result of a practitioner who prepared genuinely, communicated clearly, and then held the position they had taken — consistently, even when it was uncomfortable.

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