Inflation
is
a
fact
of
life,
and
the
price
of
doing
business
generally
increases
from
one
year
to
another. Lawyers,
like
all
other
types
of
professionals,
need
to
increase
their
rates
in
order
to
stay
consistent
with
the
price
of
other
goods
and
services. A
multitude
of
market
conditions
may
warrant
that
a
lawyer
increase
rates
from
time
to
time,
including
more
years
of
experience,
geographic
variables,
and
a
variety
of
other
factors. Even
though
negotiating
rate
increases
with
clients
can
be
tricky,
there
are
some
strategies
lawyers
can
implement
to
make
sure
that
this
process
goes
more
smoothly.
New
Clients
It
is
far
easier
to
charge
higher
rates
to
new
clients
than
to
existing
clients.
This
is
because
new
clients
do
not
have
a
history
with
a
law
firm
and
expectations
about
what
they
might
be
charged
for
given
services.
In
addition,
new
clients
are
often
in
a
worse
position
to
negotiate
for
lower
rates
based
on
the
volume
of
work
they
provide
to
a
law
firm
or
other
factors.
When
a
law
firm
wishes
to
charge
higher
rates
to
new
clients,
they
usually
just
include
the
new
rate
in
a
retainer
agreement.
In
many
instances,
the
new
client
will
either
accept
or
reject
the
rate
without
negotiating
costs.
It
is
far
more
difficult
to
increase
rates
with
clients
with
which
a
client
has
a
relationship,
so
charging
new
clients
higher
rates
is
an
easy
step
if
a
law
firm
wishes
to
raise
rates.
Wait
For
New
Engagements
It
is
usually
easier
to
charge
higher
rates
to
existing
clients
when
the
client
seeks
out
counsel
for
a
new
engagement. In
many
jurisdictions,
lawyers
must
provide
a
client
with
an
engagement
letter
or
retainer
agreement
before
starting
work
on
a
given
matter. When
such
an
occasion
arises,
it
is
usually
a
convenient
time
to
include
the
higher
rate
in
the
paperwork
provided
to
a
client
and
ask
that
they
assent
to
the
higher
rate.
Clients
often
need
lawyers
the
most
when
they
are
seeking
them
out
for
a
new
engagement
like
a
litigation
matter
or
deal
that
requires
work
on
an
expedited
basis. Broaching
the
subject
of
higher
rates
might
dovetail
naturally
during
the
onboarding
process
of
accepting
new
work,
and
clients
might
be
more
amenable
to
a
rate
increase
during
such
times
than
if
a
rate
increase
is
requested
during
a
more
random
time.
Annual
Rate
Increases
Some
firms
increase
their
rates
at
regular
intervals
such
as
once
a
year.
This
has
the
benefit
of
making
rate
increases
automatic
so
that
both
the
law
firm
and
clients
know
to
expect
that
rates
will
increase
at
some
set
point. In
addition,
this
might
make
it
less
awkward
for
lawyers
to
broach
the
subject
of
rate
increases
since
this
topic
does
not
seem
random
and
ad
hoc. Raising
rates
at
regular
intervals
also
reminds
lawyers
that
they
need
to
increase
their
rates
and
communicate
this
to
clients.
It
is
easy
when
operating
a
law
firm
to
forget
about
administrative
tasks,
and
regular
rate
increases
take
some
of
this
work
away
from
law
firm
and
firm
administrators.
Regular
rate
increases
have
a
few
downsides.
Market
conditions
may
not
warrant
a
rate
increase,
and
increasing
rates
at
regular
intervals
can
make
one
law
firm
less
competitive
in
a
marketplace
than
another
law
firm.
In
addition,
some
clients
might
not
properly
be
part
of
a
rate
increase,
either
because
they
give
lawyers
a
large
volume
of
work
or
they
were
only
recently
signed
to
a
firm. Law
firms
should
carefully
consider
whether
such
a
system
is
advisable
for
a
given
shop.
All
told,
negotiating
rate
increases
with
clients
can
be
stressful,
but
with
some
strategies
in
mind,
this
process
can
be
easier
to
implement.
Jordan
Rothman
is
a
partner
of The
Rothman
Law
Firm,
a
full-service
New
York
and
New
Jersey
law
firm.
He
is
also
the
founder
of Student
Debt
Diaries,
a
website
discussing
how
he
paid
off
his
student
loans.
You
can
reach
Jordan
through
email
at jordan@rothman.law.