Ep. 34 How to Raise Your Prices the Right Way As An Online Business Owner (Plus Lessons From Canva, Honeybook, Kit, and Kajabi's 2025 Price Increases)
If it feels like everything costs more this year, you are not imagining it. Software, team, taxes, supplies, even the little things you used to ignore on your credit card statement.
With average annual inflation hovering around the mid single digits in recent years, your costs are creeping up whether you adjust for them or not. In a traditional nine to five you might see a yearly cost-of-living raise.
As an online business owner, no one taps your shoulder to remind you. If you do not raise your rates while your expenses rise, you end up overbooked, underpaid, and on the fast track to burnout.
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Price increases are normal and healthy. They can also be handled poorly. Let’s pull lessons from four big names that raised prices recently, then map out a respectful plan for your own increase that protects client trust and your profit.
What the 2025 price hikes taught us
Canva: whiplash hurts trust
Canva announced a large increase and users reported jumps as high as about 85 percent in some plans. The internet lit up. After the backlash, Canva backtracked for many customers and tried to clarify who would pay what. Listening is good. Sudden reversals are not. The feeling left behind was uncertainty. Will it stick next time?
Lesson: do not spring huge jumps on people. Give a long runway, explain the why, and avoid changing course multiple times. Consistency is part of trust.
Honeybook: do not force features people did not ask for
HoneyBook rolled out new AI features and a significant price increase. Many users felt pushed into paying for tools they did not want. A wave of folks left for alternatives like Dubsado and scrappier setups.
Lesson: give customers choice. If you add bells and whistles, keep a simple tier that preserves the core value at a palatable price, and invite people to opt in to the upgrades rather than swallowing them whole.
Kit (formerly ConvertKit): tone matters as much as math
During their rebrand, Kit said prices were not going up. Months later, they did. The announcement emphasized how long it had been since a raise and how generous past development had been. The increase itself was not the only issue. The tone landed as defensive and me-first.
Lesson: lead with empathy. Explain your rationale, share timing clearly, and avoid language that sounds like customers owe you for past choices. People remember how you make them feel.
Kajabi: give options and a clear path
Kajabi also raised prices. They framed it around upcoming features that many creators actually wanted, and they gave users the option to downgrade into a new lower tier that still covered core needs. I personally moved into that tier and ended up paying less.
Lesson: offer a path for different budgets. When you raise, pair it with tangible value and a respectful opt-down for those who do not need the extras.
The right way to raise your prices
You do not need a press release team to get this right. You need intention, clear communication, and a plan. Here is a simple approach that works for service providers and digital product businesses alike.
1) Be intentional about your why
“New year, new prices” is not a strategy. Anchor your increase to something real: higher operating costs, a stronger portfolio, faster delivery, deeper expertise, a refined process, or demand that now exceeds your capacity. When the reason is true and specific, it is easier to communicate and easier for clients to accept.
2) Communicate early and directly
Thirty days is the bare minimum. Ninety days is better for retainers and ongoing services. Tell current clients first, in private, before you post anything public. Share what is changing, when it takes effect, and how it impacts them. Invite questions. If you have long-time or legacy clients you want to keep, consider a smaller increase or a custom package that preserves their access while keeping you whole.
Quick message starter:
“Beginning April 1, my monthly package will be $2,200. This reflects higher operating costs and the expanded scope I have been providing, like strategy audits and faster turnaround. You will continue to receive the same deliverables and experience. If your budget requires adjustments, let’s talk through a version that fits.”
3) Be transparent about your logic
You do not need to open your books. You do need to show you have thought this through. A short explanation goes a long way. For example: “Software, processing fees, and contractor rates have increased. I have also added strategy, QA, and reporting that shorten timelines and improve outcomes. This adjustment keeps your experience high quality and keeps the business sustainable.”
4) Size the lift thoughtfully
Massive jumps feel like punishment. Smaller, periodic increases feel normal. For most service businesses, raises in the 10 to 20 percent range at a time are easier to absorb. If you have not increased prices in years, do not leap from $1,500 to $6,500 overnight. Stair-step your way there with clear timing. Your future self will thank you for making steady adjustments rather than emergency ones.
5) Own your value without over-justifying
Say it plainly. “My new rate is X.” Avoid apologizing or writing a novel to defend the number. You are safeguarding your capacity and the client experience. Confident, clear language signals that you take your work seriously and will continue to show up at a high level.
What to say, without the awkwardness
Use this as a base and tweak for your tone.
Email template for current clients
Subject: Upcoming update to your planHi [Name],
I want to give you an early heads-up that my rates will change on [date]. Your [package name] will move from [$old] to [$new]. This reflects higher operating costs and the added strategy and support I have been providing so your projects keep moving smoothly. Your deliverables and experience do not change, and your current timeline stays exactly the same.
If you would like to keep your monthly spend closer to your current level, I can recommend a lighter package that still covers your priorities. Either way, I appreciate you and I am committed to making this transition easy. Feel free to hit reply with questions.
Warmly,
[You]
One-to-one talking points
Lead with appreciation and the date the change takes effect.
Share the reason in one or two sentences.
Restate the value and what stays the same.
Offer an alternative package or a legacy adjustment if appropriate.
Pause and listen.
Avoid the pitfalls you saw in the big-brand examples
Do not surprise people. Give notice and stick to your timeline.
Do not bundle features no one asked for without a choice. Keep a lean tier available.
Do not make the announcement about how hard you have worked. Make it about how you will continue serving well.
Do not rely on a single email. Remind gently as the effective date approaches.
Are you due for a raise? Ask yourself
Are your current rates profitable and sustainable once you account for taxes, software, contractors, admin time, and margin for growth?
Do your prices reflect your current skill level, speed, and client outcomes, not the level you were at two or three years ago?
If you filled the next two months at today’s prices, would you hit your income targets without overbooking yourself?
Can you point to tangible value your clients see and care about, such as outcomes, speed, or a better experience?
If you are nodding along, it is time to map your increase and communicate it with care.
Raise Prices With Confidence: Your Next Three Moves
Pick your effective date and percentage, then draft your client messages.
Decide whether you will offer a legacy plan or a lighter alternative for select long-term clients.
Update your assets on a single day: website pricing, proposals, sales pages, and canned emails, so there is no confusion.
A well planned price increase is not a money grab. It is a commitment to your clients that you will keep delivering strong work without burning out or cutting corners. Done right, it actually builds trust. If you are wrestling with the details or want feedback on your announcement, send me a DM on Instagram and we can talk it through.
🔗 Links & Resources Mentioned In The Episode:
➡️ Follow me on Instagram @spechtand.co
➡️ Grab The Stand Out Brand Foundations Workbook
➡️ Book Your Stand Out Brand Strategy Session (use code SFBPOD for $100 off)
🎧 Listen to episode 34 of The Six Figure Brand Podcast on Spotify, Apple Podcasts, Amazon Music, and YouTube
