Why Rate Increases Feel Scary (And Why Data Fixes It)
Most solopreneurs undercharge. They know it. But raising rates feels risky: what if clients say no? What if I lose too much business?
Historical project data answers these fears with evidence:
- What is your implied hourly rate on your current flat-fee projects?
- What percentage of proposals have you won in the last 12 months?
- What was your most profitable project type, and why?
With this data, you're not guessing. You're making an informed decision.
The Project Profitability Analysis
For every project you completed in the last 12 months:
- Revenue received
- Hours invested (if you've been tracking time)
- Implied hourly rate = Revenue / Hours
What's the distribution? Are some projects profitable (implied rate above your target) and others not? Are there project types that consistently come in under?
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This analysis tells you where to raise rates first — not uniformly across all services, but specifically on the project types that are currently underpriced.
The Win Rate Analysis
For every proposal or inquiry in the last 12 months:
- Did you win the project?
- If not, do you know why? (Price, fit, chose competitor, project canceled)
Calculate your win rate: won / total proposals.
If your win rate is above 70%, you're likely underpriced — clients are saying yes without negotiating. A healthy win rate for a solopreneur at market rate is 40–60%.
If you've never lost a project on price, you're definitely underpriced.
Building the Rate Increase Case
When you approach existing clients about a rate increase, data makes the conversation easier:
"I review my pricing annually to make sure it reflects the scope and complexity of the work I deliver. Looking at my project data, I'm raising my rates by 15% starting [date]. For you specifically, this means [specific change]. I wanted to give you advance notice — and I'm happy to lock in current rates on any project we scope before [date]."
This framing: shows it's systematic (not random), quantifies the change (no surprises), offers a concrete benefit (lock in current rates), and gives notice (professional).
The Rate Raise Decision Framework
Raise rates when:
- Win rate consistently above 60%
- Time tracking shows implied hourly rate below target on key projects
- Your rates haven't increased in 12+ months while costs and skill have increased
- You've added significant capability or credentials that the market values
Sohovi gives you the data quality picture you need to make the case for fixing it — and to track improvement over time.
The data makes the decision obvious. The communication makes it smooth.
