Agencies are good at pricing new work and bad at repricing old work. The retainer signed three years ago at a friendly rate is still running at that rate, while salaries, rent, visas and software have all gone up, and the client now asks for more than the scope ever said. Every month it runs, it pays for less of your team's time.
Signs a retainer needs repricing
- It has not changed in more than a year, while your costs have.
- The work has grown: more platforms, more formats, faster turnaround, a second stakeholder who approves everything.
- It is your lowest rate for comparable work, and only because it was the first client.
- Your team avoids it, or it is always the one running late. Both usually mean it takes more time than it pays for.
How much to raise it
There is no right percentage, but there is a right method. Work out what the retainer would cost today if you quoted it from scratch, with the scope it really has. If the gap is small, raise it in one step. If it is large, close it in two steps six months apart, or rescope the retainer so the price and the work meet. A rise you cannot explain is the one clients refuse.
When to do it
- At the renewal date or the start of the year, not in the middle of a campaign.
- After a visible win: a launch that went well, a report with good numbers.
- With notice. Sixty to ninety days lets the client fit it into a budget, which matters more than the amount.
- Never by surprise on an invoice. A higher number that arrives without a conversation damages trust more than the money.
Say it in writing, then in person
Send a short letter or email first, so the client has the facts, then talk it through. Keep it to four parts:
- Thanks, and one specific result from the past year.
- The change: the new fee, and the date it starts.
- The reason, in one sentence: the scope has grown, or costs have risen, or both.
- What does not change: the team, the service, the commitment. And an offer to talk.
A sample: "Thank you for a strong year; the eyewear launch was our best campaign together. From 1 January the monthly retainer will be AED 21,000, up from AED 18,000. The work has grown to four platforms and two rounds of approvals since we set the fee, and our costs have risen with it. The team and the way we work stay the same. I would like to walk you through it this week."
If the client pushes back
Do not discount. Change the scope instead. Offer two options: the full retainer at the new rate, or a smaller one at the old rate with fewer platforms, fewer posts or a slower turnaround. Most clients choose the full one once they see what the old price would buy. If a client will not pay a fair price for the work they need, the account is costing you more than losing it would.
Make it routine
- Put a review clause in every new retainer: fees are reviewed once a year.
- Keep a record of scope changes as they happen, so the conversation is about facts.
- Review every retainer against the time it really takes twice a year.
- Raise prices for new clients first. It sets the new rate before you need to ask existing ones.
Clients rarely leave over a fair price rise explained early. They leave over a surprise.
A price rise done well is a conversation about value, not a demand. Done once a year, with notice and a reason, it stops being awkward and becomes part of how the relationship works.
