What Is Grandfathering in Pricing and When Does It Apply?

Grandfathering, in the context of pricing, is the deliberate decision to honor an existing client’s current rate for a defined period or set of sessions after a rate increase takes effect. A practitioner who grandfathers a client is saying: the rate is changing, and I am choosing to extend the current arrangement with you specifically, for this defined time.

The key word is deliberate. Grandfathering that is decided in advance — before any client conversation, as part of the rate increase planning — is a different thing than making an exception under pressure.

Grandfathering vs. Exception-Making

What nobody explains about grandfathering decisions: the difference between grandfathering and exception-making is where the decision is made. Grandfathering is decided before the announcement, as a policy. Exception-making is decided during a client conversation, in response to pushback.

How grandfathering differs from exception-making: a practitioner who grandfathers two long-standing clients because they made a pre-decided policy to do so is maintaining rate integrity. A practitioner who gives the old rate to every client who expresses difficulty is making exceptions — and those exceptions accumulate into a pattern that undermines the rate increase.

When Grandfathering Makes Sense

Grandfathering tends to make sense in specific circumstances:

Long-standing relationship with significant history. A client who has been working with the practitioner for several years, with a sustained and deepening relationship, may warrant a transition period that recognizes the history of that relationship.

Pre-existing multi-session packages. If a client has already paid for a package of sessions at the old rate, those sessions are already priced. Honoring the package at the old rate is not grandfathering — it is completing what was agreed. The new rate applies to the next package.

Defined transition, not indefinite. Grandfathering works cleanly when it has a defined endpoint: “I’m honoring your current rate through the end of this quarter” or “through the remaining sessions in your current package.” Indefinite grandfathering becomes a permanent two-tier structure that creates its own complications.

How to Communicate a Grandfathering Decision

How to communicate grandfathering decisions: a grandfathering communication is direct and warm. “My rate is changing to X effective on [date]. Because of the length and depth of our work together, I’m extending your current rate through [date/number of sessions]. After that, the new rate will apply.” The communication states the transition clearly and closes the loop on the endpoint.

The comparison between grandfathering and full transition: not every practitioner grandfathers. Some choose to transition all existing clients to the new rate on the same timeline, with adequate notice. Both are valid decisions — the question is which one is right for the practitioner’s specific relationships and practice.

How Grandfathering Works Across Contexts

How grandfathering works in different contexts: in private practice, grandfathering decisions can be made individually, on a relationship-by-relationship basis. In group programs, the social visibility of pricing makes grandfathering more complicated — a two-tier structure that members can see and discuss requires more careful handling.

Grandfathering is a relational tool, not a financial concession. Used deliberately, with defined terms and communicated clearly, it allows practitioners to honor relationships while still moving the rate forward.

The Abundance GPS Skool community helps practitioners think through grandfathering decisions as part of a clear rate increase strategy. Join us here.