When was the last time you raised your prices? If the answer is a year or longer, we need to talk.
Here’s the reality: nothing gets cheaper. Not your talent, not your tools, not insurance. If you keep your prices flat you are shrinking your business. You’re doing the same amount of work for less money every year.
Why This Matters Right Now
Your clients are finalizing their 2026 budgets as you read this. If you wait until January to announce a rate increase, you’ve missed their budget cycle. That means awkward conversations, pushback, and unnecessary friction with clients. Clients who would have just built your increase into their plans if you’d told them in November.
The Fear That Holds You Back
I know what you’re thinking: “I don’t want to lose clients.” I get it. This concern comes up in Peer Groups all the time.
But here’s what I know after decades in this space: If you’re delivering solid service, your clients expect rate increases. They give their own employees raises. They see inflation. They understand that costs go up.
One MSP I worked with hadn’t ever raised prices. After doing the math, most clients got a 15% increase, and some got 50%, 100%, even 200% increases. They lost a couple clients, but not the ones you’d expect. After they increased prices, Gross Margin jumped up because they got back to where they should have been.
What You Should Be Charging
Current hourly rates for most MSPs should be in the $175-250 range depending on your market and service level. If you’re doing advanced project work or consulting, you should be on the higher side.
If you’re at or near market rates, a standard annual increase tied to inflation (3-5%) is totally reasonable. However, if you’re significantly under market, you need to either take a bigger jump now or plan a graduated increase over the next 12-24 months.
This Is About Sustainability, Not Greed
This is about your company’s longevity and long-term financial health. If you have employees, it’s not only taking care of you, it’s taking care of them.
In order for you to give your people raises, rates also must go up.
Take Action Now
Stop overthinking it. Your clients are finalizing their budgets in the next few weeks. Here’s what you need to do:
- Read the full guide: I’ve written a comprehensive blog post that walks through exactly how to raise rates, when to do it, and how to segment your clients for different increases. Blog Post Link
- Watch the breakdown: I recorded a detailed video walking through the mechanics of raising rates, including how to handle your most profitable clients vs your problem children. YouTube Link
- Listen to the conversation: My friend Natalie and I talked through the psychology of rate increases, how to handle client pushback, and why most MSPs wait way too long to do this. YouTube Link
The bottom line: your clients are finalizing their 2026 budgets right now. If you’re going to raise rates, the conversation needs to happen in the next few weeks. Get it on your calendar. Draft the email. Have the conversations.
Your future self will thank you.
Adam
Recent Content
I have recently released some videos and blog posts that might be helpful to you. Here are some recent releases:
- 5 Ways to Improve Client Onboarding (with downloadable checklist and project plan)
- AI Growth Strategies for your MSP
- I also kicked off a nuanced video style that I’m calling MSP Rebooted . . . Basically, if I were to start over again what I would do. The first version is MSP Rebooted: Lead Generation
Connect With Me
As always, I’m here to help you navigate the challenges of running an MSP business. Consider subscribing to stay updated on these resources and more. Here’s to a productive and insightful year ahead!
- LinkedIn: https://linkedin.com/in/ahannemann
- YouTube Channel: https://youtube.com/@adam-rambles
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