Evaluating Your Law Firm Prices
Law Firm Pricing
2 min read
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No matter which pricing model you use, pricing for law firms isn’t the kind of thing you can set-and-forget. You’ll need to monitor your pricing and the market and evaluate how your pricing fits with your overall financial strategy.
Especially when you’re just starting out, feel free to experiment. You won’t know exactly what your market will bear until you test and see. Notice your client’s responses to your price quotes. If you raise your prices and notice a significant drop in engagements, maybe it’s too high. If no one even questions or balks at your price, maybe it’s too low.
Don’t be afraid to ask your clients for their feedback. Did they feel good about the value they received for your services? So many times we are scared to ask this question fearful of what a client might say, but wouldn’t you rather know if they didn’t feel good about what they paid and you delivered?
Finally, plan to revisit your prices at least every two years. Return to the strategies you considered in Chapter 3. Revise your competitive analysis. Have your primary competitors changed pricing for their law firms? If your pricing philosophy was to be at the midpoint of the market, is that still true?
Also, look at internal changes. Have firm expenses changed? Maybe you have deployed new technology to make a process more efficient and cost-effective. Could you offer a lower price as a result?
Remember, a first draft is never perfect! Give yourself permission to test and see which types of pricing work best for you and your clients. Make sure you are checking in with your clients and asking them for feedback. The good news is that you can continue to reiterate.