Attorney Fee (Rate) Increase Letter – Template & Sample

An Attorney Fee Increase Letter is a formal notice to an attorney’s clients to inform them that certain or all services in the firm will cost more from a set date. As an attorney, you can raise your rates to match prevailing market prices or because of the amount of work you are doing. Whatever the reason, you must inform your current clients beforehand.

When costs and prices change, an employee can always go to their boss and request a raise. However, as the owner of a firm or a solo practitioner, it is up to you to ensure your rates match your work. The aim is to grow your practice and meet your personal goal while maintaining your clients. In this article, we review some tips and example letters to help you notify your clients of a rate increase.

When Should You Raise Your Rates?

The decision to increase your fees is personal to each business. Your considerations as an attorney will differ from those made by a business person in the manufacturing industry. That said, you should notify your clients of any changes in your rates as well as why you made them.

Businesses should constantly be reviewing their services, rates, market value, and competition as doing so allows them to adjust their fees. Some of the reasons you may want to raise your attorney rates include the following:

  • Having more work than you can handle
  • Increases in the cost of doing business such as rent
  • Realizing you have been underpricing your services as compared to your competition
  • Improving your skills and offering a higher quality of service

Drafting Your Attorney Fee Increase Letter

Besides communicating your rate increases, you want your Attorney Fee Increase Letter to be received positively by your clients. The following pointers should help you achieve this:

  • Simplicity. Direct and simple is the best approach when communicating a fee increase to your clients. Be honest, straight, clear, and to the point. Additionally, write confidently to convey the message that you have put a lot of thought into your decision.
  • Justification. While you may believe your work and value justify an increase in your fees, your client may feel differently. It is up to you to convince them that the raise is not only necessary but deserved, so they won’t have any reservations about it.
  • Value. What does your client get out of the deal? After mentioning the increase, why you are imposing it, and when it will take effect, you should provide your client with some incentive to go along. For example, you can award them extra time to pay with the previous rate as they adjust to the change.
  • Notice. Finally, always give your client plenty of notice before changing your fees.

Attorney Fee Increase Letter (Format)

{Date}

{Client’s Name}

{Client’s Address}

{City, State, Zip Code}

Re: Fee Increase

Dear {Mr./Mrs./Ms. Last Name},

Your continued confidence and support in {name of law firm} means a lot to us. In order to continue delivering the stellar services you trust us to provide, we will be increasing our attorney’s fees from {previous rate} to {current rate}, effective {date}.

This increase in our rates has been necessitated by {mention reason for raising your rates}. We sincerely hope that this change will not affect our professional relationship. If you have any questions regarding this increase, please contact us at {contact information}.

Thank you for your continued support.

Sincerely,

{Your Name}

{Your Signature}

Sample Attorney Fee Increase Letter

27 February 2031

Hellen Kreisler

Kreisler Industries

233 Kingsland Road

San Francisco, CA 08009

Re: Fee Increase

Dear Mrs. Kreisler,

Congratulations on your successful merger last fall. we appreciate your continued support and the opportunity to serve you. In order to continue providing the stellar services you know us for, we will be raising our attorney fees by 10 percent, effective 13 March 2031.

This change has been necessitated by the recent spike in market rates in the legal community. As you know, one of our attorneys also hit his Jubilee mark in his practice, necessitating a higher pay.

We sincerely hope that this change will not affect our professional relationship. If you have any questions regarding this increase, please contact us at sandmanandpartners@email.com.

Thank you for your continued support.

Sincerely,

Adam Sandman

Attorney Fee Increase Letter (Word Template)

Attorney Fee Increase Letter (Word Template)

Final Thoughts

Raising your rates can be almost as scary as informing your clients of the changes. Some attorneys shy away from sending an Attorney Fee Increase Letter and end up getting paid less than they deserve for way too long. The good news is, most clients don’t receive this news negatively, and some even appreciate it.

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