Many freelancers get stuck at the same rate they started with, or are passively hoping for a client to initiate a raise (which, let’s face it, almost never happens).
I’m sure you’ve wondered: When should I ask for a rate increase? How much more should I ask for? How much is too much?
I have all the answers for you. Drawing from my 15+ years of experience working in the fashion industry and coaching freelance fashion designers like you to build their businesses and grow their income, I know how to get you that rate increase!
In this article, I’ll explain why you should increase your rates, offer a step-by-step guide (with word for word scripts!), and share additional tips for negotiating as a freelance fashion designer.
Signs That You Need to Raise Your Rates as a Fashion Freelancer
One of the perks of being a freelance fashion designer (or technical designer, pattern maker, etc.) is the ability to set your own rates.
Ironically, most freelancers undercharge.
If you find yourself nodding along to the list below, it’s time to finally raise your freelance fashion rates.
1. You’re neck-deep in work (and most brands say YES)
Having a packed schedule can be both a blessing and a sign that your freelance rates need adjustment. If you find yourself swamped with more projects and freelance clients than you can comfortably handle, it’s obvious that there’s high demand for your skills. If most brands say yes, then you need to raise your rates.
2. You still charge the same rate when you started freelancing
If you’ve been freelancing for a while and you’re still charging the same rate you started with, you’re long overdue for a raise.
Over the years, you’ve gained experience, honed your skills, and you’re getting your job done faster. As your expertise grows, so should your rates.
3. It’s been a hot minute since you last updated your rates
Similarly, if you haven’t revisited your freelance rates in a long time, you might be selling yourself short.
Inflation, living expenses, and all the bills add up. Regularly updating your rates ensures your earnings stay in line with real world changes.
4. You’ve upgraded your skill set
If you’ve invested time in acquiring new skills or expanding the service you’re offering – you’re providing greater value to your clients.
And it’s only fair that you get compensated for it. Not to mention the fact that most freelancers have to pay for their own training, so, consider these as investments that should yield returns in one way or another. 😉
5. You’re charging way less than market standards
How much are other freelancers charging for similar services? Where do your skills stand compared to theirs?
A quick search online (on websites such as Upwork, Glassdoor, etc.) or a chat over coffee with fellow freelance peers can give you an idea about typical rates for your role.
If you find that your rates are significantly lower than what other freelancers with similar skills and experience are charging, it’s a clear signal that you need to reevaluate your rates.
Bottomline, if your rates don’t make you a little uncomfortable, you’re not charging enough!
Pro Tip: Be mindful of this strategy since *most* freelance fashion designers undercharge! Do a gut check and check my guide on How to Calculate Your Freelance Rate as a Fashion Designer where I share 3 ways you can calculate your rates and real life examples of how much freelance fashion designers (or TDs, PDs, etc.) are charging.
How to Raise Your Freelance Rates in Fashion: Step by Step
Here a step-by-step guide on how to confidently raise your rates:
- Set Your New Rate
- Reach Out to Your Client
- Give Enough Decision Time
- Document the Raise Agreement
1. Set Your New Rate
Determine a specific amount for your desired rate increase based on your research.
If you’re still at a loss on the acceptable amount of rate increase in the industry, a good estimate is to raise your fees by 5-20%. Of course, this can vary a lot depending on your situation.
Certain circumstances might warrant a higher increase. Like Sarah Ward, a freelance designer who got her client to agree to a 33% raise. She spills exactly how she did this (and how much she’s currently charging per hour) on my podcast.
And one of my FAST students, Alison Hoenes, raised her rates by 40% (!!) this year and got no kickback from any clients! This is an old interview, but you can hear how she beat her full-time salary as a freelance patternmaker on my podcast.
I also just coached another FAST student (who chooses to remain anonymous) into doubling her rates for all new clients (and slowly increasing for existing ones). This resulted in $5150 in income for just 2 projects (which previously would have been $2125). Imagine how that increase will compound over time!
2. Reach Out to Your Client
Be polite but firm and specific when asking for a raise.
Don’t beat around the bush with vague statements like:
“I’ve been thinking about adjusting my rate, but I’m not quite sure what the new rate should be. I’m open to your suggestions.”
As a freelancer, you have the autonomy to set your own rates (including raises!). It’s you who says how much you earn, not the other way around.
If you’re considering talking about it during a call with a client (which I highly recommend versus doing it all over email), make sure to give them a quick heads up via email first. You can send something like this:
Dear [Client’s Name],
As the end of the year is approaching, I wanted to let you know I will be implementing a rate increase of X% effective [insert date] for all my clients. I would love to have a conversation with you about it during our weekly call this Monday.
Best,
[Your Name]
If you still prefer to send out emails in full detail to your clients, consider writing something like this:
Dear [Client’s Name],
I’m reaching out to provide you with an update on my hourly rate for the upcoming calendar year.
After careful consideration and evaluation, I will be implementing a rate adjustment, effective [insert date] for all my clients.
Over the [X] years we’ve worked together, I’ve actively worked on enhancing my skills to bring even more value to our projects, like [specific project highlights].
With this adjustment, my proposed rate will be [new rate]. This change is representative of the value I contribute to our partnership, and it will ensure that I can continue dedicating myself fully to our shared objectives.
Please know that I’m committed to maintaining open lines of communication throughout this process. If you have any questions or if there are any aspects you’d like to discuss, don’t hesitate to reach out.
I truly value the work that we do and would be happy to continue achieving success with you in the coming year.
Let me know any questions, or reply to this email to confirm understanding by [date].
Sincerely,
[Your Name]
3. Give Enough Decision Time
Allow your client the space and time to evaluate your proposal and its potential impact on their budget. Sending the proposal well in advance gives them the opportunity to review the information thoughtfully.
Generally, at least a month or two of notice is sufficient.
4. Document the Raise Agreement
Finally, formalize the agreement by creating a written contract. Include the newly agreed upon rate, the effective date of the raise, and any relevant terms. This written contract ensures clarity for both parties and makes sure you get that extra $$ on time.
Here’s a sample email on how to bring it up:
Hi [Client’s Name],
I’m thrilled that we’ve reached a mutual understanding regarding the rate increase. Thank you for the continued support and trust in our collaboration.
Please refer to the attached revised contract, reflecting the new rate we discussed. This updated document outlines the agreed-upon rate adjustment and its effective date.
Please take your time to review the contract. If you have any questions or need further clarification, don’t hesitate to reach out.
Once again, thank you for the ongoing partnership. I’m excited about the opportunities ahead as we continue to create work together.
Best regards,
[Your Name]
P.S. I know a lot of freelancers who work without a contract, and I highly advise you draft one up for safety. If you don’t have it yet, you can check my Freelance Fashion Designer Contract Template (it’s free!), and listen to my podcast episode with lawyer, Andrea Sager, on what to include in a freelance contract.
Tips for Negotiating a Raise
Here are some additional tips for navigating raises as a freelance fashion designer:
1. Quote higher rates to new clients
If you find yourself with multiple clients lined up to work with you, this is a good opportunity to start fresh with higher rates for your new clients.
This way, you know that your freelance rates are continuously going up and matching the need for your services.
2. Find the right timing
As a freelancer, you can change your rate whenever you want to. But you also have to make sure you’re not driving your clients nuts with constant rate increases.
Ideally, find a good time, like when you have recently finished a successful project or taken on additional responsibilities.
For example, if you initially signed up as a fashion designer (and the responsibilities were clear in writing) but have since taken on additional tasks like sourcing and project management, it’s fair that you get compensated for these extra tasks that require a different set of skills.
On the flip side, try not to raise fees too soon with new (long term) clients. Give it at least 3-6 months to build rapport and show your value. You can tell them that you’ve raised them 30% with all new clients, but to respect your relationship, you’ll do a 15% raise in 2 months, and another 15% raise 2 months later. That way they can budget for the price increase and slowly get up to speed with what new clients are paying.
3. Be prepared to lose the client
Unfortunately, a rate increase can mean a lost client. As long as you’ve been an excellent freelancer and your client is super pleased, your increases are reasonable, and you do it respectfully, you usually won’t lose them. But it can happen. I always suggest raising your prices only if you can afford to lose that client.
If that scares you, then you are likely not generating enough new work and aren’t sufficiently diversified. That’s a sign you need to do more outreach and get more referrals. Here’s a short podcast episode on exactly how to ask for more referrals.
4. Create a rate increase cycle
Just as employees receive annual pay raises, freelancers should implement a regular rate adjustment cycle. Your expertise deepens with experience and additional training, and your efficiency improves over time. (And you are not immune to the realities of rising living costs and inflation! 🤪)
A good frequency for rate adjustments is about every year, just like corporate employees.
This approach is particularly beneficial for retainers and long-term clients. Every time you get a new client, I suggest you inform them upfront about these regular rate increases by including it in your freelancer contract. This way, you don’t have to worry about it next year, especially if you’re working with multiple clients.
As freelancers, we have to stand up for ourselves and take the initiative to demand what we rightfully deserve. By regularly assessing and adjusting your rates, you ensure that your work is valued and rewarded appropriately.
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