Most MSPs know which clients are underpriced. Fewer raise it, because the conversation feels risky and there is never a good time. The renewal is the good time, as long as you start early and lead with the work rather than the number.
Here is how to decide who to reprice, when to say it, and a letter you can adapt.
Who to reprice
Start with evidence, not instinct. For each client, divide the monthly fee by the hours your team logged on them over the last three months. Compare that with your typical rate across all clients.
A client well below your typical rate, say under three quarters of it, is costing you more to serve than the rest of your book. That is the shortlist. If your team does not log time consistently, tickets per month is a rougher but usable stand-in.
How much to ask for
Work out what the client would pay at your typical rate for the work they create today. That is the ceiling, not the ask. Moving a client most of the way at one renewal is common; jumping straight to the full gap often is not.
A sensible default is to cap a single rise, for example at around 20%, and offer a smaller scope as the alternative. The client gets a real choice, and you get either a fairer price or less unpaid work.
When to say it
- 90 days before renewal: show the value. Send a one-page summary of what you resolved over the year and book a short review. No price talk yet.
- 60 days before: give notice of the new terms, in writing.
- 30 days before: confirm. Ask for a yes in writing before the end date.
Leaving it to the last month means the client has no time to adjust their budget and every reason to shop around.
What not to say
- Never share your internal margins. "You are our least profitable client" helps nobody. Talk about the support they rely on, not your spreadsheet.
- Do not apologise for the price. Explain what has changed and what they get.
- Do not bury it. The new fee, the old fee and the date it starts should all be easy to find.
A price rise letter you can adapt
Subject: Your renewal on [date]
Hi [name],
Thank you for another year working together. Your agreement renews on [date], and I wanted to give you plenty of notice of the terms.
The support your team relies on has grown since the agreement was set, and to keep giving you the same standard of service we need to bring the price in line with it. From [date], the monthly fee would be [new fee], up from [current fee].
If you would rather keep the cost where it is, we can look at the scope together instead, so the agreement covers what matters most to you. Either way, I would value a quick call to talk it through. What does your diary look like next week?
Kind regards,
[your name]
If they push back
Go back to the work. Show what you resolved this year, how quickly, and what you prevented. Then offer the scope conversation you mentioned in the letter: which services matter most, and which could go. Most pushback is about budget timing rather than the principle, which is another reason to start at 60 days.
Doing this across every renewal
Handover works out revenue per hour for every client from HaloPSA or ConnectWise, flags the ones well below your typical rate, and gives each renewal a 90, 60 and 30 day plan with the emails drafted, including a price rise letter with the new fee already filled in. See renewal plans, or run the free scan to see which of your clients are underpriced.