As a profession, lawyers may be the most resistant to value pricing due to their conservative nature. However, this is the very reason Michael Bradley from Marque Lawyers considers it a strategic advantage. The outcome for the customer is the first priority. If Marque cannot create value for the customer, they will not engage simply to make money.
For over a decade, Chris Marston has been paying his team based on the value they create for the law firm. Each employee can choose how to serve a customer in an engagement from five different roles. The contribution of the role, the lifecycle of the project and the importance of the customer to the firm determine the compensation paid. His “value” model aligns how the company prices customers to how it compensates the team.
In 2012, David Wells led Moores, a 40-lawyer practice, through a transition from hourly billing to value pricing. From his experience, he learned value pricing is more than a way to determine what to charge a customer. It is a business model, a philosophy, and a way of thinking. David shares how the new model changed the customers, employees, processes, and systems at Moores for the better.
John Chisholm helps law firms move from hourly billing to value pricing. A 25-year lawyer turned business consultant, he says the problem with the cost of legal services is not the amount. It is the unpredictability. Customers prefer the experience of and will pay more for price certainty. John shares how this single change can inspire a spirit of innovation and entrepreneurship in lawyers.
Matthew Burgess is a lawyer who lost a customer when he sent an email at 4:30am on a Sunday. The customer said he wanted Matthew’s best work not what remained after exhaustion. This incident started Matthew’s quest to find a better way. For the last ten years, he has practicing value pricing at his own firm, View Legal. He shares why the switch is a journey instead of a destination.
Price is more than a number. It is part of how a lawyer communicates value to the customer. To unpack this principle, Jay Shepherd, an employment litigation attorney, compares how a customer perceives an hourly rate vs. a fixed price. He says knowledge instead of activity is more valuable to the customer. Value pricing enables the customer to purchase what he wants in a manner he truly enjoys.