Practice Management

I have read a lot recently about fairness to clients and about the marketing technique of allowing clients to the price of representation. I contend whether you work on an hourly or fix fee or some other arrangement, it is a silly concept to think that the client is not setting the price for services in the first place.

It is kind of like someone asking if the job to which you are applying is a commission job. Of course it is. All jobs are commission jobs in the sense that if you do not bring in business or make money for the company or law firm, you will be out of there.

The same is true for pricing of legal services. You set what you want, but if it is too high you will not have any business. And, the little business you might find will likely end up in the grievance process. Who wants that.

So, maybe you think are in control of pricing, but are you really?

I think the best any lawyer can do is to set expectations for higher pricing in every way the firm does that - TV, referral based marketing, direct mail, social networks, blogging and the like. But, the truth of the matter is that you cannot disqualify lower costs offer of fees as long as they are reasonable.

Setting fees generally is a little bit like reading tea leaves. It is not at all easy. But, the more experience you get at reading those leaves, the easier it is to set fees. In short, practice makes perfect (or at least better).

I watch way too much HGTV. What you find, however, are all of these house sellers that price their homes for sale based on what they have invested in their homes, as well as the blood sweat and tears they have physically contributed to the property. Unfortunately, as all of them find out, that is not how housing is priced to sell. Real estate only brings the expectation of the public as to what like properties in the area are worth. Sure staging the home helps.  However, that is the reason you need to hire a real estate agent that is great at reading those tea leaves. The truth of the matter is that legal services are priced the same way -- no matter how or what you attempt to charge.

You have got to get use to reading the community. If you price too low, you can only bring everyone down. You price to high and you will be looking for a new profession.

It is just not easy, but you have to get use to it.