http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/ Great Things Come in Small [Law] Practices! Tue, 15 May 2012 15:19:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-1631 Brendan Tue, 11 Jul 2006 12:14:06 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-1631 Hey do you want a Rolls Royce? -Brendan Hey do you want a Rolls Royce?
-Brendan

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-6666 Brendan Tue, 11 Jul 2006 12:14:00 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-6666 Hey do you want a Rolls Royce? -Brendan Hey do you want a Rolls Royce?
-Brendan

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-1630 Paul M Thu, 13 Apr 2006 10:53:56 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-1630 As I see it, the focus here must be on the quality of service provided without regard to the fee billed. I believe an attorney is obligated to provide the highest possible level of service in every case. How can we square with any acceptable ethic for the legal profession, the proposition of doing just enough to "get by" for the client who cannot pay one's customary fee? This is a prescription for disaster. A solo practitioner must take stock of his or her experience, standing in the legal community, ability and need for income. If the calculus proves up a requirement for an hourly fee of $150, fine. If $250 per hour is the fee required in order to keep the doors open and maintain his/her standard of living, the lawyer will have to decide whether the fee is realistic, given his or her experience and ability. If not, employment should be sought rather than pressing on with a solo practice. In the end it doesn't matter what hourly fee is set - the lawyer must resolve to treat every job as if it were the most important in the world. When prospective clients annouce that they cannot pay a given fee (and this must be ascertained at the initial meeting) a good lawyer will point them in the direction of another who might help - the local bar referral system, legal aid society, or perhaps a good young lawyer whose fees are relatively low. Best to all! As I see it, the focus here must be on the quality of service provided without regard to the fee billed. I believe an attorney is obligated to provide the highest possible level of service in every case. How can we square with any acceptable ethic for the legal profession, the proposition of doing just enough to “get by” for the client who cannot pay one’s customary fee? This is a prescription for disaster.
A solo practitioner must take stock of his or her experience, standing in the legal community, ability and need for income. If the calculus proves up a requirement for an hourly fee of $150, fine. If $250 per hour is the fee required in order to keep the doors open and maintain his/her standard of living, the lawyer will have to decide whether the fee is realistic, given his or her experience and ability. If not, employment should be sought rather than pressing on with a solo practice.
In the end it doesn’t matter what hourly fee is set – the lawyer must resolve to treat every job as if it were the most important in the world. When prospective clients annouce that they cannot pay a given fee (and this must be ascertained at the initial meeting) a good lawyer will point them in the direction of another who might help – the local bar referral system, legal aid society, or perhaps a good young lawyer whose fees are relatively low.
Best to all!

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-6665 Paul M Thu, 13 Apr 2006 10:53:00 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-6665 As I see it, the focus here must be on the quality of service provided without regard to the fee billed. I believe an attorney is obligated to provide the highest possible level of service in every case. How can we square with any acceptable ethic for the legal profession, the proposition of doing just enough to "get by" for the client who cannot pay one's customary fee? This is a prescription for disaster. A solo practitioner must take stock of his or her experience, standing in the legal community, ability and need for income. If the calculus proves up a requirement for an hourly fee of $150, fine. If $250 per hour is the fee required in order to keep the doors open and maintain his/her standard of living, the lawyer will have to decide whether the fee is realistic, given his or her experience and ability. If not, employment should be sought rather than pressing on with a solo practice. In the end it doesn't matter what hourly fee is set - the lawyer must resolve to treat every job as if it were the most important in the world. When prospective clients annouce that they cannot pay a given fee (and this must be ascertained at the initial meeting) a good lawyer will point them in the direction of another who might help - the local bar referral system, legal aid society, or perhaps a good young lawyer whose fees are relatively low. Best to all! As I see it, the focus here must be on the quality of service provided without regard to the fee billed. I believe an attorney is obligated to provide the highest possible level of service in every case. How can we square with any acceptable ethic for the legal profession, the proposition of doing just enough to “get by” for the client who cannot pay one’s customary fee? This is a prescription for disaster.
A solo practitioner must take stock of his or her experience, standing in the legal community, ability and need for income. If the calculus proves up a requirement for an hourly fee of $150, fine. If $250 per hour is the fee required in order to keep the doors open and maintain his/her standard of living, the lawyer will have to decide whether the fee is realistic, given his or her experience and ability. If not, employment should be sought rather than pressing on with a solo practice.
In the end it doesn’t matter what hourly fee is set – the lawyer must resolve to treat every job as if it were the most important in the world. When prospective clients annouce that they cannot pay a given fee (and this must be ascertained at the initial meeting) a good lawyer will point them in the direction of another who might help – the local bar referral system, legal aid society, or perhaps a good young lawyer whose fees are relatively low.
Best to all!

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-1629 RJON ROBINS Sun, 02 Apr 2006 14:12:56 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-1629 HOW TO PRICE YOUR LEGAL SERVICES TO MAKE MORE MONEY AND MORE HAPPY CLIENTS. This discussion thread reminds me of a topic I've experimented, spoken and written quite a bit about over the years, first as a solo practitioner and later as a Practice Management Advisor. In my experience practicing law and working with literally thousands of Solos to improve the professionalism and profitability of their law firm businesses, the single biggest impediment to properly pricing a Solo's legal services is the mistaken belief that a law firm should provide "...only the highest quality legal services." DO ALL YOUR CLIENTS DRIVE A ROLLS ROYCE? Our Clients are consumers, and like every other consumer our Clients make choices which they believe to be rational, about how to allocate their limited resources. The fact of the matter is that every day consumers make the choice NOT to buy the highest-quality legal services available, when doing so means foregoing the ability to purchase other products and services with their finite disposable income. Think about it for a second, we can all probably agree that a Cadillac is a higher-quality car than a Chevy. So why don't all your clients drive a Cadillac, or Mercedes, or a Rolls Royce? Sure, for some of them it's a matter of taste or unique features, but I know the reason I choose not to drive a Rolls Royce is because I'd rather have a nice Chevrolet and spend the difference on my boat instead. HOW TO MAKE MORE MONEY Actually, I drive a nice Ford but the point from above remains: When deciding how to position your small law firm in the market, you'll have a more profitable law firm if you're realistic about the comparative value that your Prospective New Clients place on obtaining the highest-quality-service vs. anything (everything) else they'd rather spend their money on. In addition to making more money, you'll also satisfy more clients when you take care to position your Price:Value Strategy within reach of the realistic budgetary demands of your Target Market. CHEAP ISN'T THE SAME THING AS DECEPTIVE With all respect to Mr. Zuganelis, the anecdote he offered about the "cheap" DUI lawyer who takes $250 and then flushes his clients' Sixth Amendment rights down the toilet, really distorts the analysis. That's an example of fraud, not a sensible pricing strategy. When a consumer buys a less expensive product or service, s/he still has a right to receive the benefit of the bargain. Chevys are less expensive than Cadillacs because of the Cadillac's extra features; But the Chevy is still supposed to deliver on its promise: Affordable, safe & reliable transportation from A to B. I often analogize law firms to restaurants, instead of to cars: Some are like gourmet bistros which offer a limited number of customers a very intimate dining experience, for a price. At the opposite end of the scale are the fast-food restaurants which offer quick cheap food on plastic tables with paper napkins. In my experience, there's nothing inherently better or worse about a gourmet vs. a fast-food law firm, so long as the Client knows what s/he's getting ahead of time. The problem I find is when lawyers deceive themselves about what kind of operation they're running and try to offer gourmet service at fast food prices. I've seen far too many disciplinary cases and low-profit law firms result from this kind of mismatch between lawyer & Client expectations. A BETTER WAY TO PRICE YOUR SERVICES FIRST, establish your Financial Goals (how much money you realistically want to earn); SECOND, establish your Social Goals (how much of your life you're prepared to devote to the law firm.); and THIRD establish your Professional Goals (what kind of work you want to do every day Gourmet, Middle-of-the-Road Diner, or Fast Food Restaurant.) Then crunch the numbers and price and market your services accordingly. HOW TO PRICE YOUR LEGAL SERVICES TO MAKE MORE MONEY AND MORE HAPPY CLIENTS.
This discussion thread reminds me of a topic I’ve experimented, spoken and written quite a bit about over the years, first as a solo practitioner and later as a Practice Management Advisor. In my experience practicing law and working with literally thousands of Solos to improve the professionalism and profitability of their law firm businesses, the single biggest impediment to properly pricing a Solo’s legal services is the mistaken belief that a law firm should provide “…only the highest quality legal services.”
DO ALL YOUR CLIENTS DRIVE A ROLLS ROYCE?
Our Clients are consumers, and like every other consumer our Clients make choices which they believe to be rational, about how to allocate their limited resources. The fact of the matter is that every day consumers make the choice NOT to buy the highest-quality legal services available, when doing so means foregoing the ability to purchase other products and services with their finite disposable income.
Think about it for a second, we can all probably agree that a Cadillac is a higher-quality car than a Chevy. So why don’t all your clients drive a Cadillac, or Mercedes, or a Rolls Royce? Sure, for some of them it’s a matter of taste or unique features, but I know the reason I choose not to drive a Rolls Royce is because I’d rather have a nice Chevrolet and spend the difference on my boat instead.
HOW TO MAKE MORE MONEY
Actually, I drive a nice Ford but the point from above remains: When deciding how to position your small law firm in the market, you’ll have a more profitable law firm if you’re realistic about the comparative value that your Prospective New Clients place on obtaining the highest-quality-service vs. anything (everything) else they’d rather spend their money on. In addition to making more money, you’ll also satisfy more clients when you take care to position your Price:Value Strategy within reach of the realistic budgetary demands of your Target Market.
CHEAP ISN’T THE SAME THING AS DECEPTIVE
With all respect to Mr. Zuganelis, the anecdote he offered about the “cheap” DUI lawyer who takes $250 and then flushes his clients’ Sixth Amendment rights down the toilet, really distorts the analysis. That’s an example of fraud, not a sensible pricing strategy. When a consumer buys a less expensive product or service, s/he still has a right to receive the benefit of the bargain. Chevys are less expensive than Cadillacs because of the Cadillac’s extra features; But the Chevy is still supposed to deliver on its promise: Affordable, safe & reliable transportation from A to B.
I often analogize law firms to restaurants, instead of to cars: Some are like gourmet bistros which offer a limited number of customers a very intimate dining experience, for a price. At the opposite end of the scale are the fast-food restaurants which offer quick cheap food on plastic tables with paper napkins. In my experience, there’s nothing inherently better or worse about a gourmet vs. a fast-food law firm, so long as the Client knows what s/he’s getting ahead of time. The problem I find is when lawyers deceive themselves about what kind of operation they’re running and try to offer gourmet service at fast food prices. I’ve seen far too many disciplinary cases and low-profit law firms result from this kind of mismatch between lawyer & Client expectations.
A BETTER WAY TO PRICE YOUR SERVICES
FIRST, establish your Financial Goals (how much money you realistically want to earn); SECOND, establish your Social Goals (how much of your life you’re prepared to devote to the law firm.); and THIRD establish your Professional Goals (what kind of work you want to do every day Gourmet, Middle-of-the-Road Diner, or Fast Food Restaurant.) Then crunch the numbers and price and market your services accordingly.

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-6664 RJON ROBINS Sun, 02 Apr 2006 14:12:00 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-6664 HOW TO PRICE YOUR LEGAL SERVICES TO MAKE MORE MONEY AND MORE HAPPY CLIENTS. This discussion thread reminds me of a topic I've experimented, spoken and written quite a bit about over the years, first as a solo practitioner and later as a Practice Management Advisor. In my experience practicing law and working with literally thousands of Solos to improve the professionalism and profitability of their law firm businesses, the single biggest impediment to properly pricing a Solo's legal services is the mistaken belief that a law firm should provide "...only the highest quality legal services." DO ALL YOUR CLIENTS DRIVE A ROLLS ROYCE? Our Clients are consumers, and like every other consumer our Clients make choices which they believe to be rational, about how to allocate their limited resources. The fact of the matter is that every day consumers make the choice NOT to buy the highest-quality legal services available, when doing so means foregoing the ability to purchase other products and services with their finite disposable income. Think about it for a second, we can all probably agree that a Cadillac is a higher-quality car than a Chevy. So why don't all your clients drive a Cadillac, or Mercedes, or a Rolls Royce? Sure, for some of them it's a matter of taste or unique features, but I know the reason I choose not to drive a Rolls Royce is because I'd rather have a nice Chevrolet and spend the difference on my boat instead. HOW TO MAKE MORE MONEY Actually, I drive a nice Ford but the point from above remains: When deciding how to position your small law firm in the market, you'll have a more profitable law firm if you're realistic about the comparative value that your Prospective New Clients place on obtaining the highest-quality-service vs. anything (everything) else they'd rather spend their money on. In addition to making more money, you'll also satisfy more clients when you take care to position your Price:Value Strategy within reach of the realistic budgetary demands of your Target Market. CHEAP ISN'T THE SAME THING AS DECEPTIVE With all respect to Mr. Zuganelis, the anecdote he offered about the "cheap" DUI lawyer who takes $250 and then flushes his clients' Sixth Amendment rights down the toilet, really distorts the analysis. That's an example of fraud, not a sensible pricing strategy. When a consumer buys a less expensive product or service, s/he still has a right to receive the benefit of the bargain. Chevys are less expensive than Cadillacs because of the Cadillac's extra features; But the Chevy is still supposed to deliver on its promise: Affordable, safe & reliable transportation from A to B. I often analogize law firms to restaurants, instead of to cars: Some are like gourmet bistros which offer a limited number of customers a very intimate dining experience, for a price. At the opposite end of the scale are the fast-food restaurants which offer quick cheap food on plastic tables with paper napkins. In my experience, there's nothing inherently better or worse about a gourmet vs. a fast-food law firm, so long as the Client knows what s/he's getting ahead of time. The problem I find is when lawyers deceive themselves about what kind of operation they're running and try to offer gourmet service at fast food prices. I've seen far too many disciplinary cases and low-profit law firms result from this kind of mismatch between lawyer & Client expectations. A BETTER WAY TO PRICE YOUR SERVICES FIRST, establish your Financial Goals (how much money you realistically want to earn); SECOND, establish your Social Goals (how much of your life you're prepared to devote to the law firm.); and THIRD establish your Professional Goals (what kind of work you want to do every day Gourmet, Middle-of-the-Road Diner, or Fast Food Restaurant.) Then crunch the numbers and price and market your services accordingly. HOW TO PRICE YOUR LEGAL SERVICES TO MAKE MORE MONEY AND MORE HAPPY CLIENTS.
This discussion thread reminds me of a topic I’ve experimented, spoken and written quite a bit about over the years, first as a solo practitioner and later as a Practice Management Advisor. In my experience practicing law and working with literally thousands of Solos to improve the professionalism and profitability of their law firm businesses, the single biggest impediment to properly pricing a Solo’s legal services is the mistaken belief that a law firm should provide “…only the highest quality legal services.”
DO ALL YOUR CLIENTS DRIVE A ROLLS ROYCE?
Our Clients are consumers, and like every other consumer our Clients make choices which they believe to be rational, about how to allocate their limited resources. The fact of the matter is that every day consumers make the choice NOT to buy the highest-quality legal services available, when doing so means foregoing the ability to purchase other products and services with their finite disposable income.
Think about it for a second, we can all probably agree that a Cadillac is a higher-quality car than a Chevy. So why don’t all your clients drive a Cadillac, or Mercedes, or a Rolls Royce? Sure, for some of them it’s a matter of taste or unique features, but I know the reason I choose not to drive a Rolls Royce is because I’d rather have a nice Chevrolet and spend the difference on my boat instead.
HOW TO MAKE MORE MONEY
Actually, I drive a nice Ford but the point from above remains: When deciding how to position your small law firm in the market, you’ll have a more profitable law firm if you’re realistic about the comparative value that your Prospective New Clients place on obtaining the highest-quality-service vs. anything (everything) else they’d rather spend their money on. In addition to making more money, you’ll also satisfy more clients when you take care to position your Price:Value Strategy within reach of the realistic budgetary demands of your Target Market.
CHEAP ISN’T THE SAME THING AS DECEPTIVE
With all respect to Mr. Zuganelis, the anecdote he offered about the “cheap” DUI lawyer who takes $250 and then flushes his clients’ Sixth Amendment rights down the toilet, really distorts the analysis. That’s an example of fraud, not a sensible pricing strategy. When a consumer buys a less expensive product or service, s/he still has a right to receive the benefit of the bargain. Chevys are less expensive than Cadillacs because of the Cadillac’s extra features; But the Chevy is still supposed to deliver on its promise: Affordable, safe & reliable transportation from A to B.
I often analogize law firms to restaurants, instead of to cars: Some are like gourmet bistros which offer a limited number of customers a very intimate dining experience, for a price. At the opposite end of the scale are the fast-food restaurants which offer quick cheap food on plastic tables with paper napkins. In my experience, there’s nothing inherently better or worse about a gourmet vs. a fast-food law firm, so long as the Client knows what s/he’s getting ahead of time. The problem I find is when lawyers deceive themselves about what kind of operation they’re running and try to offer gourmet service at fast food prices. I’ve seen far too many disciplinary cases and low-profit law firms result from this kind of mismatch between lawyer & Client expectations.
A BETTER WAY TO PRICE YOUR SERVICES
FIRST, establish your Financial Goals (how much money you realistically want to earn); SECOND, establish your Social Goals (how much of your life you’re prepared to devote to the law firm.); and THIRD establish your Professional Goals (what kind of work you want to do every day Gourmet, Middle-of-the-Road Diner, or Fast Food Restaurant.) Then crunch the numbers and price and market your services accordingly.

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-1628 Peter Olson Fri, 31 Mar 2006 14:14:19 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-1628 Wal-Mart makes quite a bit of money and I don't think they're quite Neiman Marcus. Wal-Mart makes quite a bit of money and I don’t think they’re quite Neiman Marcus.

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-6663 Peter Olson Fri, 31 Mar 2006 14:14:00 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-6663 Wal-Mart makes quite a bit of money and I don't think they're quite Neiman Marcus. Wal-Mart makes quite a bit of money and I don’t think they’re quite Neiman Marcus.

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-1627 Todd Tue, 28 Mar 2006 05:50:26 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-1627 One of the problem I face as a new solo offering "Chevy" services is that the bar, rules and infrastructure are geared more toward the entire practice being "Cadillac." Especially here in a small city without rentable "virtual offices" and the sort of amenities that can help a small practice get by. One of the problem I face as a new solo offering “Chevy” services is that the bar, rules and infrastructure are geared more toward the entire practice being “Cadillac.” Especially here in a small city without rentable “virtual offices” and the sort of amenities that can help a small practice get by.

]]> http://myshingle.com/2006/03/articles/law-practice-management/by-price-alone/#comment-6662 Todd Tue, 28 Mar 2006 05:50:00 +0000 http://174.120.83.8/~sh1ngl3/475/by-price-alone/#comment-6662 One of the problem I face as a new solo offering "Chevy" services is that the bar, rules and infrastructure are geared more toward the entire practice being "Cadillac." Especially here in a small city without rentable "virtual offices" and the sort of amenities that can help a small practice get by. One of the problem I face as a new solo offering “Chevy” services is that the bar, rules and infrastructure are geared more toward the entire practice being “Cadillac.” Especially here in a small city without rentable “virtual offices” and the sort of amenities that can help a small practice get by.

]]>