name: fee-review-and-adjustment-runner description: > Executes the full Fee Review and Adjustment SOP — from analyzing current pricing against value delivered through drafting fee increase communications and updating proposal templates. Run annually in December during annual planning. metadata: author: "Kathryn Brown, Practice Builders" version: "1.0.0" date: "2026-04-28" sop: "Fee Review and Adjustment" category: "Proposals & Pricing" frequency: "Annually" estimated-time: "90 min" trigger: "December, during annual planning"

Fee Review and Adjustment — Runner

You are executing the Fee Review and Adjustment SOP for an independent consultant. Fees that don't get reviewed don't stay right — they drift. Operating costs rise, your capability deepens, and your client mix shifts, but the number on your proposal stays frozen at whatever you charged two years ago. This runner forces an annual reckoning: are your fees still an accurate reflection of the value you deliver, and do they produce the margins your practice requires?

Do not skip steps. Do not ask questions across multiple turns — collect everything upfront.

What you'll have when this is done: A reviewed and updated fee schedule for the coming year, client communications drafted and scheduled for any increases, and all proposal templates updated with the new rates — completed before January so the year starts at the right number.

Step 1: Collect All Inputs

Gather the following from the user in a single prompt. Accept whatever detail level they provide. Flag gaps but keep moving.

Current fee schedule:

• All engagement types offered (retainer, project, sprint, advisory, diagnostic, etc.)
• Current fee for each engagement type
• Average duration or term for each engagement type
• Hours typically invested per engagement type (if tracked)

Billing data for the current year:

• Total fees collected by engagement type
• Number of engagements closed by type
• Hours logged per engagement type (if tracked)
• Any engagements where scope expanded beyond original fee

Client outcomes (by engagement type):

• Typical results clients achieve (revenue gained, time saved, cost avoided, capability built)
• Best-case outcome examples with specifics
• Any outcomes you can quantify with numbers

Market and positioning context:

• Where you believe you sit in the market (budget, mid-market, premium)
• Win rate on proposals (approximate percentage)
• Frequency of fee pushback from prospects
• Awareness of competitor pricing (ranges, not exact — if known)
• Any prospect comments about pricing (too high, surprisingly reasonable, etc.)

Revenue target for the coming year:

• Target total revenue
• Target by engagement type (if broken out)

Active client list:

• Current clients with their fee structures
• Contract renewal dates for each active client
• Any clients on legacy or discounted rates

Practice economics (estimates acceptable):

• Approximate billable hours available per year
• Revenue from top 3 clients (or percentage of total)
• Rough client acquisition cost (time and/or money to land a new client)
• Average client relationship length

If the user doesn't have exact numbers, accept estimates and note where precision would improve the output.

Step 2: Run the Pricing Review (Pricing Review Analyzer — Condensed)

Using all inputs from Step 1, produce a complete pricing analysis.

2a. Current Pricing Snapshot

Build a table of every service/engagement type:

The effective hourly rate is the reality check. Calculate it for every engagement type. Many consultants discover their retainer clients are paying \$75/hour effective while their project clients pay \$250/hour effective. This table makes the disparity visible.

2b. Value Gap Analysis

For each service, compare in a paragraph:

• What the client pays (your fee)
• What the client receives (outcome value — revenue gained, time saved, cost avoided)
• The ratio between the two

Thresholds: A healthy consulting engagement delivers 3-10x the fee in value. If your ratio is higher than 10x, you're significantly underpriced. If it's below 3x, you may be overpriced or under-delivering.

Format: One paragraph per service. Name the specific outcomes and estimate the value range. Be honest about what you can and can't quantify.

2c. Market Position Check

Assess based on the positioning and win-rate data:

• Where the consultant sits in the market (budget, mid-market, premium)
• Whether positioning matches pricing
• Signals from the market (win rate, pushback frequency, prospect comments)

Key signal: If you're winning every deal, you're underpriced. If you're losing every deal on price, either your pricing is genuinely too high or your value communication is weak. Differentiate between a pricing problem and a positioning problem.

2d. Engagement Economics

Calculate and present:

• Average client lifetime value (LTV): Total revenue from average client relationship
• Effective utilization: Billable hours / available hours
• Revenue concentration: Percentage of revenue from top 3 clients
• Acquisition cost: Rough estimate of time/money to land a new client

Red flags to call out: Utilization below 60%, revenue concentration above 40% in one client (or above 30% for any single client), LTV declining year over year.

2e. Specific Recommendations

For each recommendation (3-5 total):

• Signal: What in the analysis triggered this recommendation
• Do This: The specific pricing change (with numbers)
• Expected Impact: What should happen if the change works (directional, not promised)
• Risk: What could go wrong and how to mitigate

Required: Include at least one "hold the line" recommendation — identify one area where current pricing is appropriate and should be maintained. Set a review trigger for what would change that recommendation.

Prioritize by revenue impact. Never recommend across-the-board percentage increases without specific justification per service.

2f. Implementation Sequence

Order recommendations into three tiers:

1. Immediate (new clients): Changes to apply to new proposals right away
2. Next renewal cycle: Changes to roll into existing client renewals
3. 90-day preparation: Changes that require positioning work, scope redesign, or market testing before implementing

Rule: Never recommend changing fees for existing clients mid-engagement without explicit renewal or change order language.

2g. Pricing Review Quality Check

Run these checks before proceeding:

Identify the weakest section. Rewrite it. Verify the rewrite added specific numbers or clearer action steps.

Step 3: Make Fee Decisions by Offer Type

Present the recommendations from Step 2 as a decision framework. For each engagement type, the user needs to decide:

Decision rules:

• Decide by offer type, not globally — not every fee needs to move.
• Every increase needs a rationale you can say out loud in a client conversation. "My rate increased" is not a rationale. Scope expansion, deeper capability, and market repositioning are.
• If the user can't articulate why a fee is changing, it shouldn't change yet.

Present the table pre-filled with the analysis recommendations. Let the user confirm, adjust, or override each row.

Step 4: Draft Fee Increase Communications (Fee Increase Announcement — Condensed)

For each active client affected by a fee increase, produce a ready-to-send email.

4a. Value Summary (Internal — Feeds the Email)

Review the delivered results for this specific client and organize into:

• Tangible outcomes — Measurable results: revenue generated, costs saved, processes improved, deliverables completed
• Capability improvements — What the client can now do that they couldn't before
• Relationship value — Strategic counsel, decision support, institutional knowledge, continuity

Select the top 3-4 items that will resonate most with this specific client.

4b. Increase Framing

Choose the single best frame for this client's situation:

• Scope growth — "The work has expanded beyond the original scope." Best when engagement has organically grown.
• Value alignment — "The results warrant an investment that matches the return." Best when you can point to measurable outcomes.
• Market alignment — "This rate reflects the current market for this level of engagement." Best when significantly below market.
• Annual adjustment — "I review rates annually and this year's adjustment reflects [reason]." Best for established annual review cadence.

Select one. Don't mix frames — mixed framing signals uncertainty.

4c. Email Draft

Write the complete email. Structure:

Subject line: "[Client first name] — [Year] Engagement Update"

Paragraph 1: Value delivered. Open with 2-3 specific results from the engagement. Factual foundation, not flattery. 3-4 sentences.

Paragraph 2: The increase. State the new rate, the effective date, and the framing reason. Be specific: "Beginning [date], the monthly retainer will be \$[amount], up from \$[current amount]." No hedging. No apologizing. 2-3 sentences.

Paragraph 3: Forward value. One sentence about what you're focused on in the next phase. Signals continuity.

Paragraph 4: Next step. Invite a conversation if they want to discuss, but don't frame it as a negotiation. "If you'd like to discuss this, I'm happy to set up a call" — not "let me know if this works for you." The increase is happening; the call is for questions, not approval.

Closing: Professional, warm, one line. Your name.

Total email: 150-250 words. Shorter is stronger.

Tone rules:

• Never apologize for the increase
• Never use "cost of living" or "inflation adjustment" — these commoditize your work
• State both the old and new rate — ambiguity creates anxiety, specificity creates clarity
• No hedging language ("I hope you understand," "unfortunately," "I realize this may be")

4d. Objection Preparation (Internal — Not in Email)

For each client communication, prepare responses for two objections:

If "that's a significant increase":

• Acknowledge the concern, restate the value case
• Offer to discuss scope adjustments if budget is genuinely constrained
• Never lower the rate — reduce scope instead
• Exact language: "[Ready-to-use response]"

If "budget is tight this year":

• Offer a phased implementation or slight delay to effective date
• Do not offer a discount — if the rate is right, the rate is right
• Exact language: "[Ready-to-use response]"

4e. Email Quality Check

Identify the weakest section. Rewrite it. Verify the rewrite before including in the output.

Step 5: Coordinate Timing and Delivery

Review the active client list and coordinate fee increase delivery:

Timing rules:

• Minimum 60 days' notice before any increase takes effect
• Coordinate with upcoming retainer renewals — a fee increase and a renewal are one conversation, not two
• Don't send on a Friday — Tuesday or Wednesday morning gives the client time to process during the work week
• Stagger sends if multiple clients are affected — don't send all notices the same day

Step 6: Update Templates and Published Pricing

Confirm with the user:

• [ ] New fee schedule documented and saved
• [ ] Proposal templates updated with new rates
• [ ] SOW defaults updated with new rates
• [ ] Any published pricing (website, marketing materials) updated
• [ ] All updates completed before the first proposal of the new year goes out

Step 7: Assemble Final Output

Present one unified document containing:

A. Pricing Review

Pricing Review: [Practice Name]

Review Date: [Date] Period Analyzed: [Year] Revenue Target (Coming Year): \$[Amount]

Current Pricing Snapshot

Value Gap Analysis

[Service 1]

[Paragraph: fee vs. outcome value, ratio, assessment]

[Service 2]

[Paragraph: fee vs. outcome value, ratio, assessment]

Market Position

[Assessment of positioning vs. pricing, win rate signals, competitor context]

Engagement Economics

• Average Client LTV: \$[Amount]
• Effective Utilization: [Percentage]
• Revenue Concentration: [Top client percentage]
• Acquisition Cost: \$[Estimate]

[Flags for any concerning metrics]

Recommendations

1. [Recommendation Title]

• Signal: [What triggered this]
• Do This: [Specific change with numbers]
• Expected Impact: [Directional outcome]
• Risk: [What could go wrong + mitigation]

2. [Recommendation Title]

• Signal: [What triggered this]
• Do This: [Specific change with numbers]
• Expected Impact: [Directional outcome]
• Risk: [What could go wrong + mitigation]

3. Hold: [Area to Maintain]

• Signal: [Why current pricing works here]
• Do This: Maintain current pricing
• Review Trigger: [What would change this recommendation]

Implementation Sequence

1. Immediate (new clients): [Changes]
2. Next renewal cycle: [Changes]
3. 90-day preparation: [Changes]

B. Fee Decision Log

C. Client Fee Increase Communications

For each affected client, include the complete email:

Subject: [Client first name] — [Year] Engagement Update

Hi [Client first name],

[Paragraph 1: Value delivered — 2-3 specific results. 3-4 sentences.]

[Paragraph 2: The increase — new rate, effective date, framing reason. 2-3 sentences.]

[Paragraph 3: Forward value — what's next. 1-2 sentences.]

[Paragraph 4: Next step — invitation to discuss, not negotiation. 1-2 sentences.]

[Warm close], [Your name]

Objection Prep (Internal — Not in Email)

If "that's a significant increase": Response: "[Exact language]"

If "budget is tight": Response: "[Exact language]"

D. Delivery Schedule

E. Template Update Checklist

F. SOPs to Trigger

• [ ] Annual Planning Process — fee review feeds directly into the annual revenue plan
• [ ] Change Order Management — if any active engagement scope changes alongside a fee increase

Quality Check

Identify the weakest section. Rewrite it. Verify the rewrite is present and improved before presenting.

Rules

1. Never apply a flat percentage increase across all offers. Not every offer is underpriced by the same amount. Price by offer type and realization data. A blanket increase is laziness dressed as a decision.
2. Always calculate effective hourly rate. It's the most revealing metric and the one most consultants avoid.
3. Give active clients at least 60 days' notice. Short notice frames a fee increase as a surprise rather than a planned practice adjustment. Lead time signals a professional operation.
4. Never apologize for a fee increase. An apology frames the rate change as something you're doing to the client rather than a reflection of value.
5. Always include specific results in the email. "We've had a great partnership" is filler. Name 2-3 measurable outcomes.
6. Never use "cost of living" or "inflation adjustment." These frames commoditize your work. Justify with value, scope, or capability — not your overhead.
7. State both old and new rates in every communication. Ambiguity creates anxiety. Specificity creates clarity.
8. Never offer a discount preemptively. If a client needs budget accommodation, reduce scope — never lower the rate for the same work.
9. Coordinate increases with renewals. A fee increase and a renewal are one conversation, not two. Separate notices signal a practice not running on cadence.
10. Every increase needs a rationale you can say out loud. If you can't explain it clearly in a client conversation, the increase isn't ready.
11. Dollar amounts use numerals ("\$5,000" not "five thousand dollars").
12. Escape dollar signs as \$ for Notion compatibility.
13. Include at least one "hold the line" recommendation. Not every fee needs to move. Identifying what's priced correctly is as important as identifying what's not.
14. Flag revenue concentration risk if any single client is above 30% of total revenue.
15. Never recommend price decreases unless data clearly shows overpricing relative to outcomes. If you're losing on price, the first move is to improve value communication, not cut fees.
16. Flag inferred details. If an outcome or value estimate was inferred rather than stated by the user, mark it [INFERRED — verify].

Copyright (c) 2026 Kathryn Brown, Practice Builders Licensed under the Practice Builders Skill License v1.0 See https://practicebuilders.ai/license for terms.

This skill is part of the Consulting Practice SOP Manual, a Practice Builders product. Redistribution, resale, or derivative use without written permission is prohibited.