Value Pricing

Relationships are not built on charging for time.

I passionately believe that if there is one way that you can change the way people think about lawyers, it’s by changing the way you charge for the service. Relationships are not built on charging for time.

Value pricing is no more than having a conversation with a customer and agreeing a price that is fair to both the customer and the law firm, a price that reflects value for both parties. It’s not a time-based measure. 

How many law firm customers rejoice when they are told they are offered an hourly rate plus VAT and disbursements?

Would you pay a builder on a day rate for building a house or would you seek a fixed price?

There are huge benefits for all concerned when it comes to value pricing - some of which include:

• Better conversations and better relationships with customers about what they want to achieve and how you can help them do it. It’s a step towards the holy grail of the “trusted advisor” status.

• Customer selection within your business will become paramount - you can expect fewer but better.

• You can expect to attract better quality work.

• You will not treat all customers equally- because all customers are not equal.

• You will gain an understanding that value is in the customers eyes not yours. Value is not rational, its contextual, it’s a feeling and it’s a solution to a problem.

• You will agree payment terms up-front and get paid up-front.

• You will (if you choose) stop doing work for free.

• Your people will work smarter, not harder and will have a better work-life balance and improved mental health.

• Your lawyers will feel valued by customers and supported by the firm’s management.

• You will be able to (in most cases) scrap time recording altogether and focus on outcomes and results not inputs and hours.

• Your business will become more profitable and dispense with an artificial cap on its income earning potential.

I will work with your management and legal teams to design a value pricing proposition process which works for you. This will include helping your lawyers design agreements that they will use, and customers will take pleasure in accepting.

It is a challenge, but if handled the right way even the most cynical lawyer can be won round - especially when quick wins are achieved.