2024-04: Musicians: You must raise your rates! Here's why, and here's how
Mix Artist Studio Newsletter April 2024
Dear Artists and Music Creators,
Be honest - how long since you've increased your rates for gigs? One year? Three years? Even longer? Enter your rates into this calculator and see what you should charge today.
Let me phrase it bluntly: if you don't raise your rates, you're going backwards.
How do you raise your rates without upsetting clients?
Raising rates can be intimidating. After all, you don't want to piss off people with whom you have business relations. But avoiding the inevitable is not going to work in the long run. It must be done, and it must be done the right way.
Write an email to all your clients, keeping the tone clear, factual and respectful. Here are a few tips to get started:
- Give Heaps of Notice: Provide your clients with ample time to prepare for the rate increase. Ideally, announce the changes at least 30 to 60 days in advance to allow them to adjust their budgets accordingly.
- Explain the Reasoning: Be transparent about why the rate increase is necessary. Clearly communicate that the adjustment is in response to inflation and the rising cost of living. Use simple language to help your clients understand the economic factors driving the decision.
- Highlight Value: Emphasise the value that your music services provide despite the rate increase. Showcase any improvements or enhancements you've made to your offerings to justify the adjustment in pricing.
- Sweeten the deal (where possible): For example, can you offer a slightly longer set? Can you step up promoting that show on your social media channels?
>>Here's an email draft to get you started.
Make sure to personalise the draft as much as possible.
The next step is to follow up personally: Meet or call a week after sending the email. Confirm they have received your email, and offer to answer any questions.
Don't apologise (!) - be confident in your rate raise and clear in your communication. You will be surprised how many clients will understand and agree to your new rates.
But what if they don't?
What do you do if the new rates are rejected?
IMPORTANT: Do NOT backflip - under no circumstances!
If clients give you a hard time for raising your rates, offer alternatives: discuss alternative pricing options or package deals. This could include discounts for long-term commitments or bundled services to soften the impact. It's a marketplace, so a bit of bargaining is part of the fun.
If any verbal agreements were made, you must follow up via email with a brief but accurate summary of the agreements.
>>Here's a draft for a follow-up email
Make sure to adjust the draft to your specific situation and personalise it.
The absolute last offer
If none of the above works, use the absolute last offer: a shorter set at the old price.
You must be prepared to walk if a client cannot agree to that. It is normal to feel frustrated in this situation, maybe even angry. If that's you, take a break, a deep breath, step away and sleep it over. Wait until the emotions have cleared and you're calm and collected.
Then end the relationship respectfully and politely without hurting anyone's feelings.
Don't be scared to lose a gig!
It's a sign that you're progressing as a musician and you've outgrown this venue.
And that's a good thing: It'll free up the time you're going to invest in finding new clients who are a better match for you.
A great starting point is the Byron Shire Music Industry Directory, click 'Venue' in the filter section - you'll find contacts for dozens of local venues.
