There are some out there who argue that you have to charge all your clients the same rate. Their argument is that, eventually, someone will talk to someone else and “the secret will be out.” Once the cat escapes the bag, at least one client of yours will be thoroughly infuriated that they’re paying more than someone else.

I would say that there’s a major assumption driving this logic:

That your clients can afford to pay ever-increasing rates as your business expands, and if they can’t, they aren’t worth keeping. (And also that your clients can’t handle the truth, at least in a way.)

I don’t agree.

First, I’ve said before that my repeat clients are some of my highest-value clients overall. This is both in terms of tangible value (money), and intangible value (referrals). The vast majority of those repeat, long-term relationships were founded when my  rates were lower, and/ or where those clients had a certain budget that I was willing to work within. The ones that were worth sticking with self-selected; My low-quality clients tend to automatically evaporate quickly without me doing any weeding. Because the folks who have stuck with me are good to work with, I’m willing to offer a discount.

Second, I’m clear about there being price differences between old and new clients. When I quote to new clients, I explicitly say “My new-client rate is…” I try not to give the impression that everyone is paying the same thing. I think people can handle my frankness. I’ve never had anyone throw any flak my way over what I’ve said.

Third, some rates do go up. The best case is when someone is very impressed and gives me a raise without me insisting upon it. There are also positive conversations, though, where I’m able to say, “I’ve really expanded what I’m able to provide for you. Do you want to go to the next level? It would cost…” Sometimes they say yes, sometimes they aren’t really interested.

Fourth – and in some ways, a corollary to the third point – I scale what I provide. What I mean is, some clients who pay a bit less also need less. Just this year, I moved to a “single-hung” system versus a “double-hung” system for a particular client. The double-hung approach was mostly adding clutter and effort to a show that didn’t benefit from it any way. Effectively, I now get a better rate for those events, and the client is still just as happy.

Fifth, there are some clients that are just too much fun to work with to lose. There are folks out there who, if I insisted on them meeting a new and much higher rate, would be completely priced out. I’d then lose those high-quality clients who play great music and are a blast to be around. Why would I do that, especially when the long-term business case for keeping them as clients ALSO lines up with loving them as people? It’s a no-brainer. Of course I keep working with them.

I can respect that some folks can’t get on board with billing different clients different rates. If it doesn’t make sense to someone, I can’t arbitrarily insist that it be logical. At the same time, all kinds of different businesses and contractors offer discounts and specials for all kinds of different reasons. That’s what I do, and the folks that I work for seem to appreciate it.