Best way to communicate with new client as a freelance graphic designer?

How should I tell an existing client that my freelance rate has increased?

• I'm a freelance designer. I've been working with the same client for more than a year. In that time, my rate has increased enormously with each new client. But my old contract (and my old, low hourly rate) are still in place with this long-time client. So this client is sort of "grandfathered in" to a ridiculously low rate. What's the best way to tell them that I need to increase my rate? I've been putting it off because I'm not sure of the best approach.

• Answer:

  You should be direct--tell your client that you greatly appreciate the experiences you have had working with them and that you want to keep working with them, but that the demand for your work has gone up and you have been getting opportunities to work at higher rates. Tell them that you want to keep working with them, but that to do so with a good conscience, you have to increase your rate to keep you with what you are receiving from other clients. Otherwise, you will feel as though you need to start prioritizing other, higher-paying clients over them. That said, you should understand that, whenever you ask for a pay increase, it's always possible that the other party might say no. In that case, you have to decide whether to continue to do the work or to walk away. While it's good to maintain strong relationships with your clients, in the end, it isn't a charity, and it's important that you both know what your work is worth and that you expect to get paid the fair market value. Otherwise, you not only risk sacrificing more lucrative work for yourself, but you drive down the prices throughout the market. In the end, you have to be willing to walk away from clients who are unwilling to pay you the market rate for your services. If your clients are as satisfied as their work with you would suggest, then they will hopefully understand that you're worth it and--particularly given your understanding of their processes, the people on their staff, your institutional knowledge, and your files--will gladly pay the extra amount.