Lawyers are changing their pay structures. It used to be
Lawyers are changing their pay structures. It used to be that they would bill hourly (top dollar for top lawyers, less experienced helpers had cheaper rates). Now they’re beginning to price like consultants-per project. Thus they must begin assessing the value-added to the client firm of the legal expertise and assistance. What advice would you give a law firm to proceed fairly and profitably?
An individual can help a firm run ethically and earn profits by providing the following suggestions:
An analysis can be done on various customer segments. The price structure can be decided based on the segment to which the customer belongs. A customer can belong to a business segment, service class and so on. The firm can charge accordingly. Setting a price structure as per the needs of a customer segment can help the firm attract a sufficient customer base and earn sufficient profits.
If the firm decides to provide more benefits apart from only legal consulting, the firm can set a higher price. If the firm decides to provide only a single service, the price can be set accordingly. The price can be compared to what the competitor firm charges from the customers as per the benefits provided.
The firm can simply set a lower price. Initially, a lower price with more benefits can help the firm establish a good image in the market. The customers can be served with the best of the benefits at a relatively low cost. This can make clients shift from the competitors to the concerned firm for any legal advice.
The following suggestions can be provided to the firm so that the firm can earn profits and work ethically:
The firm can charge a price based on the customer segment.
The firm can assess the type of service provided such as high benefits or fewer benefits.
The firm can straightaway keep the prices low if the firm aims to enhance the goodwill.