COULD SWITCHING TO FLAT-FEE PRICING WIN YOU MORE CLIENTS? WHY YOU SHOULD CONSIDER DITCHING HOURLY BILLING
Most lawyers charge their clients by the hour, but in the last few years, we’ve seen a movement away from that model and toward flat-fee pricing. On the surface, it seems nuts — why would a lawyer set themselves up to lose money if they end up working overtime? But after a closer look, we’ve found there’s a huge potential benefit for flat-free pricing that’s often overlooked.
HOW TO DO IT WITHOUT LOSING MONEY
Lawyers avoid flat-fee pricing because they worry that they’ll set their prices too low, then start hemorrhagingmoney if a case takes longer than they expected. That’s a valid concern, but you can assuage it by doing two things: choosing your prices carefully, and creating a tiered pricing structure. When you pick your fee, look over your past cases and choose a price that’s in the sweet spot — base it on cases where you’ve had prices that were higher or lower. Then, take the time to create a tiered structure with different prices for cases of various types and complexities, and find the sweet spot at each level. Whatever pricing model you choose, our team can help develop a marketing plan that’s right for you. To learn more about your options, head to SpotlightBranding.com/NL.
THE ARGUMENT FOR FLAT-FEE PRICING
Going the flat-fee route aligns your interests with the interests of your clients. The hard truth is that the hourly billingmodel pits the lawyer against the client financially. Nomatter howmuch integrity you have or howmuch you care about your clients, your firmmakes moremoney the longer a case takes, and your client loses money at that same pace. This never fails to make clients a bit suspicious of their lawyers and anxious about their cases. Just think about the last time you had a plumber at your house who charged by the hour. Didn’t you feel the urgency to get themout of there mounting with every passingminute? The flat-fee pricingmodel will keep your clients from feeling that same way about you. Plus, saying, “This is the price, and we’ll get it done nomatter how long it takes without charging you a cent more,” is a great selling proposition. People want to pay for results.
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