Practice Management

Don't compete on price--especially now.

By Dan Hull

If a client comes to your firm for price, it will leave your firm for price.

Value, not price alone, is the point. You're in a services profession, so value will be conferred on and experienced differently by different clients in different engagements. It's all in the work--i.e., first rate legal products mixed with real client service for every client you serve--and the billing.

It's case by case. It's very hard, and it takes thought.

But no matter how your firm bills--hourly, "value", flat or a combination--don't lower the price for your firm's services, especially for new clients or to attract work.

Don't lower rates. Don't change anything. If a new client (especially via an in-house lawyer, but we doubt you'll see that happen) demands a "discount" these days, it is likely both unsophisticated and a pain in the ass; refer it to that firm down the street you just never liked.

Full post as published by What About Clients? on June 09, 2009 (boomark / email).