The phrase “we have been invited to participate in ‘client X’s’ eAuction” is guaranteed to be met with a series of groans within many law firms. In part, this is due to a fear of unknown, but also the more justifiable fear of one’s legal services being ‘commoditised’ where price is seen as the sole determinant of value. Yet, it is something that we need to get used to.
When you think of discussing pricing with your clients, what emotions does this generate? If you are like most professionals, it creates a level of anxiety. While you hopefully enjoy the work you do, pricing often seems to be a barrier to success – it gets in the way of us winning work and creates tension between us and our clients. Most professionals can list multiple examples of where they would have won the job, if only the price could have been less. Or worse still – where pricing conversations with clients didn't end well.
It's now commonly accepted that law firms lost their pricing power during the last recession. If we accept the proposition that law firms have lost pricing power, then how should they respond? Read on to find out.
In an era when many law firms are coming to terms with clients who want ‘more for less’, there is a risk of getting caught in a race to the bottom when determining their fees. This article explores how you can win back your pricing power.