BIG Mail NOW Magazine - Issue V-840

 

BIG Mail NOW Magazine COVER Page
FULL PAGE ADVERTISERS
How YOU Can Advertise
In This Magazine




Law Practice Management – How To Determine Your Fees

Determining fees is a difficult law practice management task for most attorneys when thinking through their law firm marketing plans. In determining fees for certain services, attorneys often fall short of what they should charge. Too many attorneys are afraid of even charging the competitive price for their services when making their law firm marketing plans. Further, they make the pricing decisions often with no data or conceptual framework. Additionally, instead of focusing their efforts on how they can justify getting top dollar for what they offer, they charge a fee that is often way too low and often actually can scare off potential clients who think there is something missing from a service that is “cheap”. Additionally many attorneys don’t realize that most purchasers in the marketplace by far are “value purchasers” and not looking for “cheap”.

So before you sit down and begin thinking through your law practice management pricing strategy you need some distinctions around pricing commonly used in law firm marketing planning. Then add your pricing strategy to your law firm marketing plans. You need to be sure that you are charging a sufficient fee on everything to guarantee you a good profit not just a good living. Do know a law practice management law firm marketing plan is not effective if you only attract people who want to pay the lowest fee for a service. These are not loyal clients. Instead, you want to focus your law practice management and law firm marketing plans on attracting clients who will become long term assets to the firm. Low price clients are not building your base of long term clients I can promise you that.

There are basically four ways of determining how much you should be charging for your services. Lets move right into those now.

The Market Method In Law Practice Management Pricing

This is one good way of determining pricing. Get your assistant to support you in this law practice management task and spend some time discovering what the range of pricing is in the community. Have her do a “mystery shopper” study by calling around as if he/she were a potential client and find out what your competitors say on the phone to her around pricing. She may need to call from her home phone to avoid caller ID. As another option you could have him/her call other assistants or paralegals at your competitors and offer to exchange your fees for their fees or you could do that with other lawyers yourself in your market. If you really want to get into it and have maximum data you can write maybe a few dozen competitors in your marketplace and say you are doing a fee survey and if they would send you their fee list you will create a composite list that does not identify those responding and send them a copy of the results. To keep it simple for them include a stamped, self-addressed envelope with a list of the most common services offered in your practice area. Now you will see what people are charging for services similar to those you offer. You should be able to come up with a range of prices. Use this range to set prices for your own services. My recommendation in law firm marketing planning is to charge at the 75% level of the list. So you should be at or in the top 25% of the fees.

Remember that in general it is not a good law practice management strategy to compete on price. Most potential clients will see pricing that is too low as a signal that there is something missing either from the service, the provider, or the firm. And people who are looking for a low price will follow that low price wherever they can find it rather than becoming long-term clients. So be sure that your price covers your costs and a reasonable profit margin.

The Cost Method in Law Practice Management Pricing

This law practice management pricing method is very straightforward really. One simply determines what the costs are to deliver products or services and adds on a reasonable profit, somewhere between fifteen percent at the least and maybe thirty three percent at the most. The most common mistake in law practice management using this method is to neglect to include some form of your expense. Solo and small firm attorneys tend to not include their own salary!

OK, let me say it again. In law practice management often you count yourself out of the expenses and you should include yourself in the expenses. Why? Often you are doing at least some of the technical work. Yes? Often you are doing at least some of the management work. Yes? As the owner of the business you are due a reasonable profit. Yes? If you are all three of these in one, you should consider one salary as due you for your time and expertise as the technician and manager as well as a profit of fifteen to thirty percent due you as the owner. So be sure to include a reasonable cost for your technical and managerial work in the expenses part of this formula.

Fixed Rate Method in Law Practice Management Pricing

This is the method used by many auto mechanics (it is called “the flat rate book”) and other service providers. This method is where you determine a fixed rate for various jobs and charge that rate no matter what. If the mechanic spends less time than allotted for the job, he makes more. If he spends more time than allotted, he makes less. But in the end, it all evens out (well, usually to the mechanics’ favor if you ask me). Another example using this method is how managed health care has used this system with hospitals and doctors. Lawyers can use this system if they desire.

The “Rule of Three” in Law Practice Management Pricing

This “rule of thumb” called the “rule of three” used in law practice management is not what your CPA might tell you and it does not fail you either. Ask your CPA what they think about it and they will like it. To begin we are going to be thinking in thirds. For the first third we will take the total amount of salaries/bonuses (not benefits just salaries – benefits go into the second third coming next) for the revenue generators and/or timekeepers (this includes you if you are generating revenue) and call that our first third. So add up the salaries of the lawyers, paralegals, and legal secretaries who generate revenue or are timekeepers and call this your first third (lets just say that number was $100,000 to keep it simple). Whatever that number is take that number again and it is your second third which we will call your “overhead” (thus that second third is $100,000 and don’t forget you if you are doing some managing partner type duties since that part of your time goes here in overhead). Then take that same number and we will call that your last third, which we will call gross profits (another $100,000). What you need to do is take the total amount (in this example $300,000) and now figure out how much you must charge per billable hour, per fixed rate or how many contingency fee cases won to be sure you hit the target we must hit given our first third number times three (in this example $300,000).

This method shows you how much per hour you need to charge. Since you know how many billable hours each revenue generator can do per month, simply divide that into your total of all thirds ($300,000) to see what you need to charge per billable hour to make your numbers come out correctly. As long as you hit your targets you will be assured of a 15% to 30% net profit from your operations. After all if you are the owner of the practice you deserve a fair profit as well don’t you agree? This method is known as the Rule of Three. If this method is a bit too confusing do feel free to contact me and I will help you sort it out in a few minutes on the phone.

It is a good idea to think through all of these pricing methods in determining your law practice management pricing strategy before setting a price and moving ahead with a law firm marketing plan to ensure you are thoroughly exploring all options. Remember the tendency for most lawyers is to price too low. Don’t do that! In another article I will tell you how to speak to potential clients so you never have a problem getting the fee you deserve.




 

BIG Mail NOW Magazine
FULL PAGE ADVERTISERS

!-WANT_TO_PURCHASE_ MINERALS_&_OTHER_OIL_&_GAS _INTERESTS.pdf
0-RL-Browning-Endless-Cash-System.pdf
0-S-DADA-The-Millionaires Club-Lotto-Tickets.pdf
00-JC-Patton-wealthperx.pdf
00-Wrightsco-com.pdf
00-jj-jones.pdf
1-J-Hurley-Free-Money-Making-Downline-for-Life.pdf
1-M-Golden-Make-Money-Simple-Cash-Payment-Plan.pdf
1-R-Bacha-The- Perpetual-Wheel-of-Fortune.pdf
2-D-Foley.pdf
20-J-Hurley.pdf
20-JCPatton-Mail-Lists.pdf
20-Robert-Peterson.pdf
20-T-E-Abraham-The-Wealth-Union.pdf
3-D-R-Deegan-Cash-Retirementt-Plan.pdf
3-J-Hurley-Time-Freedom-Rings.pdf
5-L-Valentine.pdf
5-L-Valentine2.pdf
5-S-Ford-The-Largest-Permanent-Matrix.pdf
5-T-Abraham-The-Wealth-Union.pdf
6-McCray.pdf
7-D-Deegan.pdf
8-180-Niche-package-offer-THE DOUGLAS MILLIKEN COMPANY.pdf
8-CR-Ellard.pdf
8-E-Molina.pdf
8-L-Valentine.pdf
88-A-Lawson.pdf
88-BD-JOHNSON.pdf
88-D-Baker.pdf
88-J-SMITH.pdf
88-d-nicholls.pdf
88-h-clay.pdf
88-j-orlando.pdf
88-jc-patton.pdf
88-l-domerson.pdf
88-l-gaines.pdf
88-m-bugarini.pdf
88-s-frescas.pdf
99-A-Moore.pdf
99-E-Bynum.pdf
99-H-Clay.pdf
99-JC-Patton-Mail-Lists.pdf
99-Monique's Mail.pdf
99-R-Peterson.pdf
99-c-vandergrift.pdf
99-j-skuse.pdf
99-r-vandergrift.pdf
99-wrights.pdf
A-BRADLEY.pdf
FRED-HINSTON.pdf
Gerard-Jeanty-1.pdf
Gerard-Jeanty-2.pdf
K-SCHECHTER.pdf
R-DEL-PILAR.pdf
Rabbi-Rev-Earl-Kelly.pdf
T-Johnson.pdf
Your-2016-ADSHEET-DIRECTORY1.pdf
sam-scruggs-21.pdf

 

WANT TO PURCHASE
MINERALS AND OTHER
OIL/GAS INTERESTS.

Send details to:
P.O. Box 13557
Denver, CO 80201


Current Issue of 04/24/2018

WEALTHPEX


182


FREE FULLER BRUSH-STANLEY CO.
Dealership, Website & Hosting.

Earn Money Working From Home.
1-410-674-0030
Join:www.FullerBrushgetstarted.com
Shop at: www.FullerDirect.com
ENTER Log in #1417663

79



159


MAKE $600 A WEEK MAILING MY SPECIAL POSTCARD!


131



160


FREE GASOLINE!

Become a lifetime member and never pay again for gasoline. Receive $100 prepaid gasoline card over and over again each time 10 people join the Club with your membership number on this flyer. Make copies of your certificate and give them away to friends or send them through the Internet to people you know. Send one time $24.95 membership in a self-addressed stamped envelope to:
SAM'S GAS CLUB
2112 HOLLYWOOD DR. #2A2
JACKSON, TN 38305 ID #609.
PH: 731-928-5601
Your Name:____________________
Address:______________________
City/State/Zip:__________________
Gasoline choice:_______________

66


INFORMATION SELLING GOLDMINE!

1,000's of Super Hot Money Makers
Now on one Jammed-Packed CD!
For your own "The Harris Infoserve Disk Catalog CD"
with unlimited duplication and resell rights,
Rush $39.95 + $3 S&H to:
HAROLD BOSI
PO Box 35-188
Elmwood Park, IL 60707

11


FREE MONEY


46


DISTRIBUTORS WANTED!
Make up to
$10,000 Monthly
GIVING AWAY
FREE PRESCRIPTION DISCOUNT CARDS

which save people up to 87% at over
54,000 pharmacies nationwide!
Send this ad and $1.00 to:
ALLIED CONSULTING
PO BOX 111124
AURORA, CO 80042
Attn: RxCut HIM-1

146


The Opportunity to own more books than many Small Town Libraries!

40,000 + eBooks!
http://mailbiz.com/mailbiz /mailorder/1pdf/Bozi1.pdf

47


HELP WANTED: HOMEWORKERS WITH RECIPES

Favorite Dishes, Home Remedies, Health,
Biz Plans, Etc.
For New Book Info.
Includes O's Outreach Adsheet With Big Mail Offer.
Send $2.00/SASE To:
OCS
POB 1835
NY, NY 10159

3


ADVERTISE
TO
INTERNET MILLIONS

Only $19.95 for
54 Words or Less.
Expect Amazing Results.
DIRECTORY
POB 661
DALLAS, GA 30132
www.DomainWealthSites.com/9032.html


54


FINALLY , A WAY FOR AVERAGE PEOPLE TO MAKE UP TO $1,000 PER WEEK.

Go to http:wwwmailboxmiracle.com/906
Call 24 hour:518-530-1744
Must use ID #906

112


Free Money

You never have to pay back! Receive $2,500 every 30 to 45 days. You make a pledge to send a $100 Gift (one-time) to only one person.
Money-Making-Pages.com /moneypage471.pdf

163


EARN BIG MONEY

PART-TIME FROM HOME
MAILING OUR
FULL COLOR POSTCARDS.
VISIT: www.abminfo.com
FOR COMPLETE DETAILS.
REFERRED BY #9285
J.C. PATTON

50


DISTRIBUTORS WANTED!
MAKE UP TO $10,000 MONTHLY
GIVING AWAY
FREE PRESCRIPTION DISCOUNT CARDS

which save people up to 87% at over 54,000 pharmacies nationwide! For a complete information packet, send this ad and $1.00 to:
ALLIED CONSULTING
PO BOX 111124
AURORA,CO 80042
Attn: RxCut-SCAB-1

152


HOME BASED BUSINESS

Start An Information - Mail Order Business -Home! Money Come To Mailbox - Reprint Rights. Free Details. Hurry! Send $1.00 + 2 F/C Stamps To:
McNeal - SC255
POB 490443
Chicago, IL 60649
1(800)631-8233.

139


14 BEER RECIPES



114


POSTCARD MARKETING
REPORTS!

FREE REPRINT RIGHTS! Sample Titles & Details.
Send This ad, $1 +2 F/C Stamps To:
ALAN McFALL
P.O. BOX 11272
MERRILLVILLE,IN 46411

148


WOW Start Up Home Based Business
For Under $20

With HUGE PROFIT POTENTIAL!
FREE DETAILS Send SASE To:
BRIAN ARENDELL
PO Box 20783
Portland, OR 97294

28


MERCHANT ACCOUNT

Interested in switching your merchant
account or setting up a new account.
Visit NOW! Mention ID # 16425
www.MrpREBATE.com

16


SILVER EAGLE PRO

Over $10,000 A Month-Plus
An endless supply of
valuable American silver & gold coins. Financial freedom at last!
ilovemailorder.com/silvereaglepro.htm
ilovemailorder.com/silvereaglepro.pdf

138


EASY WAY TO BIG EBAY PROFITS!


35


MONEY-MAKING OPPORTUNITIES

Receive $50-$100 or More. Make Big Bucks! Money To Your Mailbox - Guaranteed To Work, Easily. Free Details. Send $1.00 + 2 F/C Stamps:
WILLIAM-SC252
POB 490443
CHICAGO,ILL 60649
1(800)631-8233

118




    


images_article



images_horiz_220x90



images_horiz_468x60



images_horiz_728x90



ad_images_mini



images_square

images_vert


BIG Mail NOW Magazine

BIG Mail NOW Magazine - COPYRIGHT © - ALL RIGHTS RESERVED