A good friend of mine who consults law firms on business development, David Freeman, asked a group of us for best practices in helping lawyers respond to rate pressures from clients.
Here was my answer:
A lack of transparency into why bills go up is the real problem. Are they going up 5% just to give everyone a raise? Did they have a bad year? That is not the client’s problem, so they do not want to pay for it. Here are a few ideas:
1. The Big TV philosophy: People will spend a little more each year for a big screen, but it better have new features (3D) and a bigger screen. Law firms need to find a way to couple higher prices with extra services (quarterly reviews, free seminars, etc). By the way, “being attentive to your needs” and “quick response” is not an extra. It is a given at your real damn high rates.
2. This or That: have a talk with them and show them different ways to staff projects and matters. If THEY choose to save money due to a different mix of associates and partners, it is their choice.
3. Open the books: why is there a price increase? Show them how your costs are going up and link it to the increase in rates. They are not expecting you to be a non-profit.
Give it a try.
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