It’s the time of year when many lawyers consider raising their hourly rates or flat fees—but hesitate out of fear of losing clients or scaring off new ones. The truth? Those fears are overblown. If you raise your rates, your practice will not collapse. In fact, your bottom line will thank you when you review it after 2025.
Existing Clients Won’t Leave Over Higher Rates
Do you really think long-term clients will walk away because you raised your fees? Not likely. Everyone—from streaming services to grocery stores—has raised prices since the pandemic. Take Netflix: it increased rates, lost a few subscribers, yet still boosted revenue by hundreds of millions. Why? Because loyalty and quality matter more than price.
The same is true for you. A handful of clients may complain or even leave, but those are often the ones who quibble over bills anyway. Your core clients—the ones who value your expertise—will stay. Like Netflix, you’ll come out ahead.
New Clients Aren’t as Price-Sensitive as You Think
Most new clients still come from referrals, not Google ads. When someone is referred to you by a trusted source, they already believe in your value. As long as your fees fall within the general market range, they won’t balk—even if you’re at the higher end. Referrals aren’t shopping for the cheapest lawyer. They’re shopping for the right lawyer.
Low Rates Can Undermine Your Brand
Some lawyers think charging less makes them more competitive. In reality, it can hurt your image. Higher rates signal confidence, quality, and demand. Lower rates may raise doubts: “Why are they so cheap? What am I missing?”
Think about luxury brands: no one buys a Rolex because it’s affordable. Clients often equate cost with capability—and in legal circles, a higher rate often means more respect.
A Quick Hypothetical
Imagine a client, Debbie, who hires Karen, a family law attorney with 20 years of experience. Karen charges $250/hour, well below the local market rate of $300–$400. Debbie still thinks, “Divorce is expensive.”
If Karen charged $375/hour, Debbie’s reaction would be the same: “Divorce is expensive.” The difference? Debbie might actually perceive Karen as more skilled, because higher rates suggest higher value.
The Bigger Picture
Legal services are expensive, and clients know it. They expect to pay—and often associate higher fees with higher quality. Whether it’s a Fortune 500 CLO or a neighbor writing a will, clients anticipate that good lawyers cost money. Don’t disappoint that expectation.
The Bottom Line
I’ve coached and advised lawyers for over 20 years on marketing, management, and practice growth. I’ve gotten some things wrong, but not this: raising your rates will not drive away the clients you want to keep. On the contrary, it strengthens your practice, your brand, and your profitability.
Failing to raise your rates leaves money on the table. And that’s the real mistake.