[Increasing Fees] What to Say When the Phone Rings (6 minutes)
When you send out a fee increase notice, expect the phone to ring.
Clients may react emotionally, but handling these calls with professionalism is key.
This article walks you through what to say when faced with fee increase objections.
From dealing with frustrated owners to managing tough clients, you’ll learn how to stay calm, explain the reasons for the increase, and offer reasonable compromises without giving in too much.
By standing your ground and knowing your worth, you can handle fee increase calls confidently. Discover more tips and scripts in Win Your Worth Secrets today!
So, you’ve sent out your fee increase letter, and now the phone is ringing with your clients calling in reaction (or you're receiving emails).
First off, understand that many people react emotionally when they first see that letter. They think, "What? A real estate agent increasing fees? Your fees are supposed to be negotiable!"
That’s often the attitude when they call or email you.
Interestingly, when they get a letter from their bank or health insurance company about fee increases, they don't usually call them up to renegotiate. But because you're in real estate, you've got to be prepared for these conversations.
And trust me, having done this for hundreds of rent rolls across Australia, New Zealand, and the United States for over 20 years, the reactions are predictable.
In my book, Win Your Worth Secrets, I’ve covered all my experience on how to handle these situations—the scripts, steps, and everything you need to manage fee increases effectively.
And the best part? The book is free—we’ve paid for the printing, all you need to do is cover the shipping. Head over to winyourworthsecrets.com or IGTCentral.com for more.
Now, let’s get into what to expect and how to handle fee increase reaction calls.
Expect the Phone To Ring
Out of every 100 fee increase letters or emails you send out, expect around 10 calls or emails in return. Not all of them will be angry.
You might have a few who are frustrated—maybe 2 or 3 out of 10—but the rest just want to talk.
They’re not necessarily leaving, but they want to make you think they might. This is what we call ‘emotional bluster’ or ‘saber-rattling’.
The key is to remain calm and professional. Their goal is to rattle you emotionally, so don't fall into that trap. Keep your cool.
- Standard Marketing Fee This fee covers the costs of listing properties on portals. In Australia, you’re likely familiar with the two major portals that charge fees. New Zealand has its own marketing portal costs as well. Make sure you’re covering those costs, and if you haven’t updated your fee recently, ensure you’re adjusting it, as portal charges tend to increase on a regular basis.
Don’t forget to factor in any additional marketing efforts, such as Facebook or LinkedIn campaigns. Always check your local legislation to ensure you can on-charge these costs. - Professional Photos If you’re taking professional photos for listings, you should be charging a fee to cover those costs. It’s a straightforward service, but make sure it’s reflected in your fee structure.
- Video Walkthrough Fee Offering video walkthroughs is becoming increasingly common. If you’re walking through the property with a camera or phone, narrating as you go, that takes time—editing and uploading included. You should be charging for this service, and the suggested fees are detailed in the book.
- Virtual Tour Fee Using high-tech tools like Matterport or 360-degree cameras to create virtual tours can be time-consuming and require expensive equipment. This is another service where you should be charging a fee for the value you provide.
How to Handle an Angry Call
When you get an angry owner on the phone, the most important thing is to remain calm and professional. A good opening line could be:
"Hi Mr. Smith, I’m sorry you’re upset, but we’ve had to increase our fees due to rising business expenses and legislative compliance costs. We wouldn’t have done this if it wasn’t necessary. You’re important to us, and I’d love to discuss this with you."
At this point, some owners just want to vent.
After a brief chat, they may realize your reasons are valid and that rising costs are affecting everyone—not just them. They'll probably end the conversation feeling like they've been heard, and that will often be enough to calm them down.
Handling Tough Clients
Now, if you have a particularly tough client who clearly wants something in return (and may leave if you don’t offer them something), there are two ways to handle this, depending on the type of client.
1. Clients You Don't Mind Losing
If it's a C-class landlord—those difficult, demanding, or toxic clients—you might be okay with losing them. In that case, use a more direct script:
"Mr. Smith, I understand you're unhappy, but we’ve had to raise fees due to the rising costs of running our business and legislative compliance. Please let us know what you’d like to do."
By saying this, you're showing you won't negotiate. If they choose to leave, it's not a big loss to your business.
This approach works particularly well with clients who are overly fee-focused and time-consuming.
2. Good Clients You Want to Keep
For the majority of your clients—those you want to retain—use a softer approach:
"Mr. Smith, I can see you're upset, and I really value your business. However, we’ve had to make this adjustment due to increasing costs and compliance expenses. What do you think would be fair for both of us?"
By asking them to suggest a fair solution for all parties, you're opening the door to a reasonable discussion.
This often leads to them suggesting a small compromise, which can help you retain the client without losing too much ground.
Don’t Over-Compensate
If you feel the client is asking for too much, don't hesitate to say:
"Mr. Smith, I’ll need to discuss this with management. Is it okay if I call you back in 30 minutes?"
That gives you time to think, consult with your team, and come back with a more balanced offer. Just remember—don’t give away the whole ‘vegetable patch’ if all they’re asking for is a carrot.
If your new fees are significantly higher than your old ones, try to meet somewhere in the middle. You don’t have to revert to the old rates entirely.
Stay Professional and Reasonable
Ultimately, clients will understand that rising costs affect everyone. They just want to be heard and feel that you’re being fair. If you offer them something small, in most cases, they’ll walk away satisfied, knowing that you’ve made an effort to accommodate them.
The key is to remain professional and not let emotional bluster sway your decision-making.
Know Your Worth!
Handling fee increase calls comes down to maintaining your composure and knowing your worth. If things get heated, don’t be afraid to ask for time to consult with your team and get back to the client. Make sure you stand your ground, and only offer small compromises when necessary.
For more tips and scripts on handling these calls, don’t forget to check out our book Win Your Worth Secrets.
It’s packed with 20 years of my experience helping agents like you navigate fee increases and challenging clients.
Head over to winyourworthsecrets.com or IGTCentral.com to grab your copy today.
Take care!
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