Last week I had to opportunity to interview Jay Shepherd of the Client Revolution and Prefix LLC on Total Expert Radio. In 2006, Jay stopped keeping track of hours and become a champion of fixed-fee pricing for his legal clients. I’ve interviewed attorneys about alternative billing before, but what makes Jay unique is the fact that he believes fixed-fee pricing isn’t limited to simple legal matters. Jay incorporated his billing model with complex matters, such as non-compete lawsuits and business-employment litigation.
Here are some of the things I learned from Jay during the show:
- Attorneys who use fixed fees should stop comparing themselves to attorneys who bill hourly. The way you charge may change the way you work, so your fixed rates shouldn’t be determined by an estimate of the total cost of your imaginary hourly rates.
- The billable hour is almost 100 years old. Every other industry knows how to price their products and services. It’s time for attorneys to catch up.
- Fixed pricing does not mean you have to create one-size-fits-all prices for all clients. Your clients aren’t all the same so you shouldn’t charge them all the same.
- Instead of setting standard fees up front, use your initial meetings and phone calls to determine the price according to how much the client values your services and how much their business is worth to you.
For more tips and a full list of factors that will help you set prices, listen to the radio show recording here. Join us next month on Wednesday, June 1 at 12pm central for our next Total Expert Radio show: Must-Have iPad and Tablet Apps for Attorneys, featuring Finis Price of TechnoEsq.com.