I work in custom software development (own a company). We increase rates, no issues with customers. They'll pay, it's hard to find good coders. The general way I was taught to adjust pricing is that if you have maxed out your possible output, you need to raise output (hiring) or raise prices. If you are freelancing, you cannot raise your output, only your prices. If you REGULARLY don't have enough work, then you need to lower your price (while keeping in mind that there are fat months and skinny months, and that there is always some seasonality to work IE companies looking to make costs towards the end of the year to reduce tax burdon)