How email marketing agencies can increase pricing for automation retainers

Key takeaways

• Price increases are essential for growth – Without regular adjustments, inflation and rising costs will erode your agency's profit margin, making it harder to invest in your team and tools.
• Automation work has unique value – You're not just sending emails; you're building systems that generate predictable revenue for clients, which justifies a premium price.
• Communication is 90% of the battle – A clear, professional client communication plan that focuses on delivered results prevents the conversation from becoming confrontational.
• Justify with data, not emotion – Use specific metrics like revenue generated, time saved, or list growth as your pricing justification, not just your increased costs.
• Have a template and a timeline – A standardised template for rate increase letters ensures consistency and professionalism, while a 60-90 day notice period shows respect.

Why do email marketing agencies struggle to increase retainer prices?

Most email marketing agencies struggle to increase prices because they fear losing clients. They worry the client will see it as greed, not value. This fear is especially strong with automation retainers, where the work can feel "set and forget" to the client.

In reality, your costs are always rising. Software like Klaviyo or HubSpot increases its fees. Your senior strategists deserve raises. General inflation makes everything more expensive. If your prices stay the same, your profit margin (the money left after paying all bills) shrinks every year.

Another common mistake is waiting until you're desperate. You might try to raise prices because you're financially squeezed. This puts you in a weak negotiating position. The best email marketing agency retainer price increase strategy is proactive, planned, and tied to the clear value you deliver.

What makes automation retainers different for pricing?

Automation retainers are fundamentally different from basic email sending. You are building and maintaining revenue-generating systems, not just executing tasks. This creates a stronger foundation for price increases.

With a standard email retainer, you might charge for hours spent designing and sending a broadcast. The value is clear but limited to that one campaign. An automation retainer is different. You're creating evergreen sequences – welcome series, abandoned cart flows, post-purchase nurture tracks.

These systems work 24/7 to convert leads and customers without manual intervention. They generate predictable income for your client month after month. Your ongoing work involves optimisation, analysing performance data, A/B testing subject lines, and updating flows based on new products.

This is high-value, technical work that directly impacts the client's bottom line. Specialist accountants for email marketing agencies often see that agencies who frame their work as "system management" command significantly higher margins than those positioned as "email senders".

How do you build a bulletproof pricing justification?

Your pricing justification must be rooted in the results you've delivered, not your internal needs. Gather concrete data that proves the value of your automation work before you ever mention a new price.

Start with revenue metrics. What revenue can be directly attributed to the automation flows you built? Look at the lifetime value of customers who came through a welcome series, or the recovered sales from your abandoned cart sequence. Even estimates based on platform data are powerful.

Next, quantify efficiency gains. How much time did you save the client's marketing team by automating previously manual processes? Perhaps you automated a lead qualification process that used to take 10 hours a week.

Finally, show strategic growth. Highlight how you've grown their list, improved segmentation, or increased engagement rates since you started. This shows you're not just maintaining a system, but actively making it more valuable. A strong pricing justification turns the conversation from "you want more money" to "our work together is generating more value, and the investment should reflect that."

What should a client communication plan for a price increase include?

A good client communication plan is a scheduled series of touchpoints, not a single invoice surprise. It manages the relationship and frames the increase as a positive evolution of your partnership.

First, give plenty of notice. Aim for 60 to 90 days before the new rate takes effect. This shows respect for the client's budgeting process and avoids putting them on the spot. Start the conversation in a scheduled review meeting, not via email.

Second, lead with value, not price. Begin the meeting by recapping the successes and results you've achieved together over the last period. Use the data from your pricing justification. Only after establishing this shared value do you introduce the new rate.

Third, present it as an update to the scope of work. Explain that to continue driving this level of results and to incorporate new strategies (like SMS integration, advanced segmentation, or AI-powered content), the retainer needs to be updated. This frames it as an investment in future growth. A clear client communication plan like this reduces anxiety and increases acceptance rates dramatically.

When is the right time to increase automation retainer prices?

The right time is when you can clearly demonstrate increased value, not when your bank account is low. There are several strategic triggers that make the conversation easier.

Contract renewal is the most obvious and expected time. When a 6 or 12-month term is ending, it's a natural point to review the partnership and pricing. Annual inflation adjustments (typically 3-5%) should be almost automatic at this point.

After a significant success is a powerful moment. Did an automation flow you built generate a record-breaking sales week? Use that momentum to discuss investing further in the program. The client is already feeling positive about the value.

When you add substantial new services or technology. If you're now managing their SMS marketing within Klaviyo or using new AI tools for content, the scope has legitimately expanded. Your email marketing agency retainer price increase strategy should be tied to these tangible expansions of service. Avoid increasing prices when things are going poorly or if you've recently made mistakes.

What does a professional template for rate increase look like?

A professional template for rate increase is a formal letter that combines appreciation, data, and clear terms. It serves as the official record after your verbal conversation.

The template should open warmly, thanking the client for their partnership and summarising key achievements. For example: "It's been a pleasure partnering with you to grow your email program. We're particularly proud of the 25% increase in revenue from automated flows this past year."

Next, it should state the change clearly. Specify the current retainer fee, the new fee, and the effective date. For example: "Effective [Date], our monthly retainer for automation management will be updated from £2,500 to £3,000."

Then, it must justify the change. Bullet points work well here. List 2-3 reasons, such as expanded services (e.g., "Inclusion of SMS flow management"), increased results ("To support further optimisation of the high-performing welcome series"), or annual adjustment ("Standard annual review aligning with increased service value and costs").

Finally, reiterate your commitment and provide a simple way to accept, like a countersigned copy of the letter. Using a standardised template for rate increase ensures you're consistent, professional, and cover all necessary legal and business points.

How much should you increase prices by?

A typical increase for a healthy, ongoing retainer ranges from 10% to 20%. The exact percentage depends on how long it's been since the last increase, the additional value provided, and market rates.

If it's been over two years, a 15-20% increase may be necessary just to catch up with inflation and rising software costs. For an annual adjustment, 7-12% is more common. For automation work specifically, you can often justify the higher end of the range.

Consider the client's situation too. A startup might have more budget constraints than a scaling e-commerce brand. Your email marketing agency retainer price increase strategy should be flexible. You might offer a smaller increase to a loyal, long-term client while applying a standardised higher increase to newer clients.

Benchmark against your own costs. Calculate your gross margin on the account. If your team costs and software fees have risen by 10%, you need at least a 10% price increase just to maintain the same level of profitability. This is a basic commercial reality that specialist accountants help agencies track.

What if a client says no to a price increase?

Have a plan for a "no". It's a business negotiation, not a personal rejection. Your response should be prepared and professional.

First, seek to understand. Ask open questions like, "What part of the increase gives you pause?" or "Is this a timing issue or a budget constraint?" Their answer tells you how to proceed. It might be a temporary cash flow issue for them, allowing you to propose a 3-month delay.

Second, be prepared to offer options, but avoid discounting your new rate. Instead, you could propose a revised scope. For example: "If the new investment isn't feasible right now, we could temporarily pause the monthly strategy deep-dive and maintain the core automation management at the current rate." This protects your margin on the core work.

Third, know your walk-away point. Some clients will never accept paying more. If an account is already low-margin and the client refuses any increase, it may be a sign to part ways amicably. Freeing up that time allows you to onboard a new client at your current market rate. To understand whether a client relationship is actually profitable, take the Agency Profit Score — a free 5-minute assessment that gives you clarity on your agency's financial health, including profitability by client.

How do you make price increases a standard part of your agency operations?

Institutionalise the process so it's not a scary, ad-hoc event. Build price reviews into your client management and financial calendar.

Schedule annual reviews for every client, 90 days before their contract anniversary. Put these dates in your CRM and project management system. This triggers your team to start gathering the performance data and pricing justification needed for the conversation.

Create and use your standard template for rate increase letters. Store it in a shared drive so any account manager can access it. This ensures consistency and professionalism across all client communications.

Track your success rate. After each increase attempt, note whether it was accepted, negotiated, or declined. Analyse the patterns. Do increases presented with certain types of data have higher acceptance? This turns your email marketing agency retainer price increase strategy into a refined, repeatable system that fuels predictable revenue growth.

Getting your pricing right is a major competitive advantage. If you want to ensure your financial operations support your growth ambitions, consider talking to specialist accountants for email marketing agencies who understand these commercial dynamics.