Most law firms handle rate increases the same way: they send an email or letter notifying clients of a standard percentage hike—often with little to no prior discussion.
How do clients react? Emotionally.
I hear it all the time—clients feel blindsided and frustrated. To them, pricing is about fairness, and fairness is inherently emotional. When a rate increase arrives unexpectedly, without prior dialogue, clients perceive it as arbitrary and unjustified, even if the increase itself is reasonable.
The Cost of a Surprise Increase
I recently worked with a law firm that had a strong relationship with one of its largest clients. The client valued the firm’s legal expertise, responsiveness, and industry knowledge. Yet, when I sat down with this client and intently listened to their thoughts and perceptions, they shared with me a serious concern:
“We love working with this firm, but their rates are becoming a major issue. If they keep indiscriminently increasing them without taking more time to understand us and our business, they’ll put me in a difficult position.”
The firm had no idea frustration was building. Worse, they were about to send a standard email announcing a 10% rate increase. If they had followed through, I am fairly confident that this would have been a great former client. Luckily, I was able to stop the firm and coach this client’s legal team on how to approach this rate hike issue before they did irreparable damage to the client relationship. Wheh!
Raising rates is necessary, but how you do it matters. Here’s how to approach it in a way that strengthens—not weakens—your client relationships.
1. Start the Conversation Early
A rate increase should never be the first pricing conversation you have with a client in a given year. Instead, schedule in-person (or live) discussions at least annually—long before pricing adjustments come into play.
These meetings aren’t about announcing rate hikes. They’re about listening and understanding the client’s business challenges. Ask questions like:
- What are your top business and legal challenges this year?
- How can we better support you?
- What internal pressures are you facing regarding legal spend?
At these listening sessions, never forget – a successful meeting is when the client does 80% of the talking. These conversations give you valuable insight while also allowing you to highlight the firm’s investments in talent, technology, and service enhancements that create value.
2. Know Where You Stand with Clients
Getting ahead of the issue means understanding exactly how your key clients perceive your firm—before pricing becomes a point of contention.
One of the best ways to do this is through independent client interviews. A neutral third party (like myself) can gather candid insights clients might not share directly with their attorneys (see above).
With this knowledge, you can position a rate increase in a way that aligns with their expectations. You’ll know if they see your firm as a critical partner—or if they’re already questioning the cost.
3. Show Clients the Value They’re Getting
Don’t assume clients automatically see the value behind their legal spend. It’s up to the firm to communicate it.
Throughout the year, relationship partners should proactively share updates, such as:
- New talent: “We’ve expanded our team with top-tier lateral hires to deepen our expertise in your industry.”
- Technology investments: “We’ve implemented new tools to streamline workflows and improve efficiency for your matters.”
- Client service enhancements: “We’re rolling out new initiatives to enhance responsiveness and business support.”
- AI: “We’re putting this amazing new technology to work – for you. Here’s how we’re utilizing AI for your situations.”
- Industry Knowledge: “We’re using technology to track all trends in your industry. Here are one or two articles that you may not have seen relating to your business.”
These updates help build a narrative that reinforces the firm’s commitment to delivering value—long before rates are discussed.
4. Have Clients Be Part of the Discussion
Most – if not all – corporate legal departments are under pressure to control costs. Show some empathy. These General Counsels and law department heads are under immense pressures. If law firms don’t engage them in pricing discussions, they leave in-house counsel with no ability to justify the increases with their bosses..
To avoid this, firms should:
- Listen to your clients about certain pressures they are under internally.
- Discuss with them a strategy for communicating needed increases to their superiors.
- Clearly review the business rationale behind pricing adjustments.
- Tie rate increases to tangible improvements in service, expertise, and efficiency.
- Ensure clients feel involved in the discussion—not just on the receiving end of a notice.
When clients understand why rates are increasing and have been part of the conversation beforehand, they’re far more likely to accept the change without pushback.
Final Thoughts
No client appreciates an unexpected price hike. The keys to maintaining strong relationships while keeping your firm profitable is transparency, proactive communication, and meaningful dialogue.
By staying ahead of the conversation, reinforcing value throughout the year, and making clients part of the discussion, law firms can implement rate increases with far less friction—while strengthening trust and long-term loyalty.
Let’s Talk
If your firm is considering a rate increase, now is the time to start the conversation with your key clients. I can help you gather the insights needed to approach it strategically—before it becomes a problem.
Email me at fmoore@yourbigriver.com or message me directly on LinkedIn. Let’s talk.
Fred Moore
Fractional Chief Listening Officer | Founder, Big River Strategic Advisors