One of the most common questions I get from agency owners is this: “Connor, how do I increase my prices without losing all my clients?”
After 13 years of running our agency and working with over 50 agency owners since, I can tell you that most of you are leaving serious money on the table. Not because your work isn’t good enough, but because you’re scared to test what the market will actually pay.
The Price Ceiling Method
Most agencies have no idea where their price ceiling actually sits. Your price ceiling is that threshold where clients start saying no – and if you don’t know where it is, you’re probably charging too little.
When I started, we were doing logos for £150. By the time we exited, our brand projects were £20k each. That didn’t happen overnight, and it didn’t happen by accident.
We tracked everything. Every proposal, every win, every loss. And what we discovered was that we were winning far too many projects.
Here’s the thing – if you’re closing more than 70% of your proposals, your prices are too low. Full stop.
So, stop reading this article for a second and write down your current win rate. And if you don’t know your win rate, now is the time to start tracking it.
Think about it – if every client is saying yes, you’re not testing the market’s willingness to pay. You’re playing it safe and leaving money on the table.
Our Incremental Approach
With every major project we won, we would increase the quote of the next comparable project by £500 or £1000. And we would keep doing this until people said no. Not an ounce of scientific methodology went into this, but it worked.
I had one client who thought they couldn’t charge more than £3,000 for a website. Today they’re regularly pricing £10,000 for exactly the same work and winning as much of the business as they did before.
If we needed to walk the price back down after a few nos, we were willing to do so, but it didn’t happen. Why? Because our confidence in selling at this price point grew and we described the commercial value we bring.
This gradual approach meant we were constantly testing the market’s willingness to pay more, without making dramatic jumps that might shock potential clients. Each successful project at a higher price point became proof that we could command that rate.
Actually, let me tell you what really happened when we started doing this…
The key was that as our prices increased, our confidence increased too. We weren’t just asking for more money – we were demonstrating why we were worth it.
The Anchoring Strategy
Another strategy a client has used with significant success as they increase their prices is anchoring. They don’t just spring the new number on clients. But rather use this method to make the increase feel reasonable.
Let’s say you want to move from £5k to £8k projects. Don’t quote £8k. Quote £10k with payment terms that bring it down to your target.
“The project is £10k, which you can pay as £5k now and £5k in 30 days. Or if you’d prefer to handle everything today, it’s £8k.”
I did a similar process with a prospective client who was known for negotiating down any price quite aggressively. When we presented the price, I added an extra £1000 on what we normally would charge. They negotiated down to the price we would have charged anyway.
Suddenly, they feel like they’re getting a discount. Your client gets to choose, and you get your target price either way.
Try this tomorrow: Add £500 to your next proposal and see what happens. Then send me a message and let me know how you got on.
The Value Transformation
But there’s a crucial point that most pricing advice misses: if you keep getting nos when you increase prices, the problem isn’t your pricing strategy. The problem is your value proposition.
You can’t just decide to charge more without becoming worth more.
When we went from £150 logos to £20k brand projects, everything changed:
- Our discovery process became more strategic
- We started talking commercial objectives, not just design preferences
- We positioned ourselves as business transformation, not decoration
- We demonstrated how our work would increase their revenue, increase provide, drive recruitment. Any number of business opportunities
- We stopped selling time and started demonstrating outcomes
The Reality of Growing
As your agency grows, your prices must grow with it. The market expects to pay more for an established agency than a freelancer working from their kitchen table. Your costs increase and to keep your business profitable you need to raise your prices.
But growth isn’t just about charging more – it’s about becoming more valuable. When we were charging £150 for logos, we were order-takers. When we were charging £20k for brand projects, we were strategic partners.
The difference wasn’t just in price. It was in our entire approach to client relationships and the results we delivered.
Ask yourself. What does this mean for my agency?
What Stops Most Agencies
Fear. That’s what stops most agency owners from charging what they’re worth.
Fear that clients will say no. Fear that the work will dry up. Fear that they’re not good enough to command higher prices.
Every underpriced project is stealing from your and your family’s future. I know that sounds harsh, but it’s true.
Do you provide a great service? Should you be charging more? Would you feel more valued if you got a higher price for your work? Can you demonstrate the benefit of your design? If you answered yes to any of these, then you should be charging more.
Now here’s something interesting…
The clients who push back hardest on price are usually the worst clients to work with anyway. The ones who value your expertise pay what you’re worth without question.
The Bottom Line
Your agency’s pricing strategy should reflect the value you deliver, not the hours you spend. If you’re still thinking in terms of hourly rates and time-based pricing, you’re limiting your growth potential.
Start tracking your win rate. Find your price ceiling. Test the market’s willingness to pay. And most importantly, focus on becoming the kind of agency that clients will pay premium prices to work with.
Your prices are a signal to the market about the quality of your work and the level of service you provide. Make sure you’re sending the right signal.
If you need help scaling your agency, get in touch with me and we’ll schedule a discovery call to see if there’s an opportunity to work together.