Attorney Fee (Rate) Increase Letter

An Attorney Fee Increase Letter is a formal notice to an attorney’s clients to inform them that certain or all services in the firm will cost more from a set date. As an attorney, you can raise your rates to match prevailing market prices or because of the amount of work you are doing. Whatever the reason, you must inform your current clients beforehand.

When costs and prices change, an employee can always go to their boss and request a raise. However, as the owner of a firm or a solo practitioner, it is up to you to ensure your rates match your work. The aim is to grow your practice and meet your personal goal while maintaining your clients. In this article, we review some tips and example letters to help you notify your clients of a rate increase.

The decision to increase your fees is personal to each business. Your considerations as an attorney will differ from those made by a business person in the manufacturing industry. That said, you should notify your clients of any changes in your rates as well as why you made them.

Businesses should constantly be reviewing their services, rates, market value, and competition as doing so allows them to adjust their fees. Some of the reasons you may want to raise your attorney rates include the following:

• Having more work than you can handle
• Increases in the cost of doing business such as rent
• Realizing you have been underpricing your services as compared to your competition
• Improving your skills and offering a higher quality of service

Besides communicating your rate increases, you want your Attorney Fee Increase Letter to be received positively by your clients. The following pointers should help you achieve this:

• Simplicity. Direct and simple is the best approach when communicating a fee increase to your clients. Be honest, straight, clear, and to the point. Additionally, write confidently to convey the message that you have put a lot of thought into your decision.
• Justification. While you may believe your work and value justify an increase in your fees, your client may feel differently. It is up to you to convince them that the raise is not only necessary but deserved, so they won’t have any reservations about it.
• Value. What does your client get out of the deal? After mentioning the increase, why you are imposing it, and when it will take effect, you should provide your client with some incentive to go along. For example, you can award them extra time to pay with the previous rate as they adjust to the change.
• Notice. Finally, always give your client plenty of notice before changing your fees.

Attorney Fee Increase Letter (Word Template)

Raising your rates can be almost as scary as informing your clients of the changes. Some attorneys shy away from sending an Attorney Fee Increase Letter and end up getting paid less than they deserve for way too long. The good news is, most clients don’t receive this news negatively, and some even appreciate it.