In this guide, we share why law firms often undervalue and under-price their legal services, where clients see law firm value based on the type of work, and when firms should be brave with pricing vs. when to be price-sensitive.
Introduction: For value-based pricing to work in legal services, the first step is for firms to understand the client’s perception of their value when delivering varied types of legal services.
We’ve explored the value of individual partner experience for high-risk Expert Work, and why this is often under-priced due to law firm’s pre-occupation with time spent on the matter, rather than the outcome delivered. Likewise, for Entrusted Work, it seems that trust is a pawn often underplayed in the pricing game. The more the client trusts your firm, the more you can charge for these matters, and the relationship should then be strong enough to encourage pricing negotiation if necessary.
In the fiercely competitive world of routine work, cost is everything. Firms need to be able to support low pricing with low delivery costs – but how many firms are successfully offering added value to stand out from the crowd?