Lawyers would do well to read this post on Why Pricing Should be Part of Your Marketing Strategy on the Lawyerist Blog. One of the key insights in the post discusses how you know when you are priced right:
You should not be winning every proposal, and your clients should not be overly excited about your price. After all, your firm is not Kmart, and you are not running a Blue Light Special. If your client emails back too quickly and sounds like they might be making a mad dash towards your “too good to be true” price, it probably means your prices are too low. If they write back and try to negotiate you were probably pretty spot on, and if they write back and say that this is well beyond their budget, you need to decide whether or not you want to figure out a way to work within their budget or whether you want to walk away.
I think another key in pricing is looking at ways you’ve added value beyond the delivery of legal services. Have you reduced the risk of litigation? Have you saved the client time or other expenses? Do you have contacts that could help the client?
Price can be very important in a marketing strategy for lawyers. I recommend reading the post.
- Win-Win Alternative Billing Practices (lawprofitability.com)