When you have a “bad fit” with a client, raising fees can resolve the situation.
Sometimes, the client is insensitive to the compatibility issues with the provider. In this case, raising fees can initiate some dialogue with the client regarding the level of compatibility. From this dialogue, some corrective advice can be communicated gently and openly with out generating a defensive posture from the client. If anything, the client will expect you to be defend your new, higher fee. As long as you don’t get defensive (something that is within your control) a productive conversation can ensue.
In the case where the client is equally frustrated, it will serve to emphasize the “poor fit” between your service and their needs. There are many elements that comprise a “good match” and price is a fundamental ingredient. Raising your fees might just be what the clients needs to initiate a separation.
Lastly, price is also a fundamental ingredient in your evaluation of the client fit. Raising your fee might actually be what helps you decide the client is no longer a bad match. Like I tell my operations coordinator “Yeah, working with them sure is difficult, but at least now we can maintain our margin.” Knowing that you are making money makes everything OK.
So how can you lose?