do you inform clients before a $25 increase?

hi all, i was considering an across the board increase of $25 for all clients (trying to take some of the emotion out of it this year lol). is this something you would let your clients know ahead of time or just handle the small percentage of clients who have an issue with it as they come in and if it's a big issue for them then I can leave the fee the same as last year if need be on a case by case basis. thanks!

Maybe if your base is really low, but generally no. I increase prices across the board by 3-4% every single year. And there is talk on other boards that there should be more significant increases in certain cases due to TCJA. I probably would not sweat a $25 increase.

wks, at your price point, an across-the-board increase of $25 does not need a warning, especially if you don't increase prices every year.

Like smtcpa, I raise base prices about 3-4% each year. With the TCJA, there will be some higher increases on the business side. This will offset the clients who no longer file a Schedule A who will probably get a nominal price break.

It really depends on your client base. If you are dealing with typical clients who pay you in the range of $200 to $500 then I don't think it is necessary to warn them ahead of time about a $25 fee increase. If you have been incrementally raising fees over the years they will expect an increase.

Having said that i do have a dozen or so clients that I inherited that throw a fit if I charge them $10 more. I guess it is just their personality and then I ask them did they get a $10 raise last year or pay more for groceries/utilities? They get the point!

I would not. I increase my fees each year without informing, though as missingdonut said, some will get a slight break due to TCJA while others will be paying even more. I have never believed in keeping fees flat, or notifying clients of small increases in fees, because it then sets a standard they come to expect. As it stands now, their standard is to expect a slight increase each year, but they pay it because of the level of service. I have witnessed others fall into the trap of clients throwing a tantrum over a $10 increase, as someone else pointed out.

all these replies make sense. I'm going to go for it. thanks for the nudge!