How Agencies Can Improve the Prices They Charge (and Protect Profitability)

Pricing is one of the biggest levers freelancers, micro-agencies and agency owners have to improve profitability. Yet, it's also one of the most underused. Many agencies go years without raising their rates, over-discount in negotiations, or fail to protect themselves against scope creep.

In peak season when demand rises and clients are under pressure agencies have a prime opportunity to revisit pricing.

Here are six proven ways to improve what you charge for your SEO and marketing services and strengthen your margins.

1. Increase Your Prices Regularly

When was the last time you raised your prices?

It's the most obvious starting point, yet many agencies avoid it. Costs have risen significantly in recent years, squeezing margins. If you don't increase your rates, profit will quickly disappear.

The key is to treat each service differently:

• Some services may be price sensitive, where increases could impact demand.
• Others could withstand significant increases without affecting demand. These are where you should focus first.

It's not just about new clients. At some stage, you need to bite the bullet and raise prices for existing ones, too. Doing so fairly, transparently, and with clear reasoning is better than quietly eroding your margins.

2. Introduce Tiered Pricing Rates

A tiered pricing model charges different rates based on the level of expertise and value each person brings.

For example:

• £100 per hour for junior staff.
• £150 for senior employees.
• £200 for directors.

Historically, agencies using tiered pricing have made between 4-8% more gross profit than those using a single blended rate. While tough market conditions have narrowed the gap, tiered models remain more profitable.

If you already use tiers, review whether you're undercharging at certain levels especially if your senior team has had pay increases recently. If you're not using tiers, start simple: add a premium director-level rate, then expand as needed.

If tiers don't make sense as in it's just you! Think about offering a blended rate some things you do an Account Executive would, others are more director level. Just be sure to be charging for the high value work accordingly.

3. Review Your Discounting Strategy

Discounting is sometimes unavoidable particularly when negotiating with a client who might want to stop working with you. But it should always follow a clear strategy.

Instead of giving away margin, ask: what will we get in return?

Options include:

• Higher volume of work: e.g. a discount if spend increases.
• More upfront payment: e.g. 75-100% paid at the start of the project.
• Better payment terms: e.g. discounts only if invoices are paid within 7 days.
• Longer-term commitment: e.g. a discount for a 3-year contract, saving you annual re-tenders.
• Marketing value: e.g. referrals, testimonials, or case studies in exchange.

Whatever the trade-off, be careful. Even small 5-10% discounts add up quickly so make sure the value exchange is worthwhile.

4. Provide More Than One Price

Too many agencies and freelancers only include a single price in proposals. But offering three options is far more effective.

As Blair Enns (Win Without Pitching) explains, multiple options change the dynamic from a zero-sum win/lose to a collaborative what's best for you?

BenchPress data backs this up:

• Agencies that offer three options are twice as likely to achieve conversion rates above 60%.
• They also tend to win larger deals than those who only present one price.

Three options allow you to:

1. Anchor a premium option.
2. Position a mid-tier as the best value.
3. Reduce the need for prospects to seek comparisons elsewhere.

5. Agree an Approach for Out-of-Scope Work

No significant project stays perfectly within scope. Clients change briefs, add requests, or you discover new opportunities mid-project.

If you haven't agreed on a process for out-of-scope work up front, you risk absorbing extra work for free killing profitability.

Best practice:

• Define what's in and out of scope at the start.
• Include common flashpoints: number of amends, content volume, design variations.
• Create a contingency budget that can be used if the client requests more.

This way, scope creep becomes an agreed extension of value not a hidden drain. For more on managing client relationships effectively, see our guide on improving the SEO client onboarding process.

6. Use Value-Based Pricing

Even if you use deliverable- or time-based pricing, you can still adopt a value-based mindset. The principle: price based on the value you create, not the hours you log.

Steps to apply value-based pricing:

1. Build a deep understanding of the client's business.
2. Identify what outcomes they value most (e.g. leads, conversions, cost savings).
3. Position your service as the path to that value.

When clients see the price in the context of the outcomes they'll achieve, it stops being a cost and becomes an investment. This approach aligns with how successful agencies think about creating successful SEO proposals.

Where It Matters for Agencies

Pricing isn't just numbers on a spreadsheet it's a positioning tool. How you price tells clients how you value yourself.

• Agencies and freelancers that never increase prices signal insecurity.
• Agencies and freelancers that discount without a strategy undermine their credibility.
• Agencies and freelancers that scope carefully and offer value-based options show confidence and authority.

In peak season, clients are making fast, pressured decisions. They want certainty, expertise, and value. Agencies that review and refine their pricing strategies now will show up WHERE it matters most as trusted, profitable partners, not commoditised suppliers.

Conclusion

Improving your prices is one of the most impactful things you can do for profitability. Regular increases, tiered models, smart discounting, multiple options, scope management, and value-based thinking all add up.

If you haven't revisited your pricing in the last 12 months, make it a priority before peak season hits. Or start to revise ahead of New Year because if you don't value your work properly, why should your clients?