By michelle_pgs | February 27, 2024

Do you currently use ‘Value-Based’ pricing when deciding what fees to propose to a client?

In our legal industry there are often discussions about when and whether you should use ‘Value-Based Pricing’ rather than ‘hourly rates’ or plain old ‘fixed fees’.

But in my view, the fees you propose should always be value-based.

I don’t mean that your fees should be based on your value (your experience, expertise, reputation, etc.) … instead, they should be based on the value of the outcome you’ll help the client achieve.

But how do you get a client to accept a value-based fee that isn’t based on the number of hours it will take you to achieve the outcome they want?

The answer lies in the way you communicate value during the process of converting an enquiry into a paying client (i.e. the ‘conversion’ process).

If you want your client to accept your value-based pricing, you must first make sure they see that value.

Take action

Asking questions during the conversion process is the best way to do this. For example, if you ask your prospective client what outcome they are looking for (not just what legal service they want) and why that outcome is important to them, they will likely share with you what they would find most valuable about getting your help.

You can then develop the ‘value’ conversation from there.

Helping clients to see the value of your services, so they are prepared to pay higher fees, is just one of the 9 Profitable Practice ‘Accelerators’ that we use to help small law firms double their profits without working more hours.

To find out which ‘Accelerators’ you would most benefit from using, come to our online workshop for lawyers where I’ll help you create a bespoke ‘Profit Accelerator Plan’ for your firm or practice area.

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