Value Based Pricing
Historically, the cost of legal services has been calculated by the lawyer’s hourly rate. Billable services include telephone calls, letters, document preparation, and court attendance.
In a law firm setting, these services can be executed by many individuals who work on a client matter. This includes lawyers, law students, and paralegals. These individuals may have differing rates, but the principle is the same.
Value Based Pricing Strategy
Value based pricing has been described as: “… a nexus between the client’s perception of the value they have received and the fee they have been charged. In other words, the practitioner considers that they have been properly remunerated and the client considers that they have received advice and service at a price they consider to be fair. The concept need be no more complex than that.”
Arrival at this nexus requires the balancing of a lawyer or law firm’s need to ensure a return on the investment of their time and expertise, while the client needs to know that they are getting value for the money based on their choice of lawyer.
Lawyers the world over recognize that flexible billing approaches are necessary and beneficial to all parties involved.
Value Based Pricing Example
In the end, the approach requires little more than the client and lawyer defining the scope of work and agreeing on the value that will be paid for said work.
The agreed upon flat fee is normally paid in advance at the outset of the retainer agreement. Everyone benefits – the lawyer receives immediate payment for the value of their services and the client has the certainty of fair legal representation and advice.
Dunsmuir Law offers a myriad of services on a value based pricing model, including Family Law. We offer a complimentary initial consultation to determine the billing arrangement that would best serve all parties, including the exact amount to be billed to you once you agree to retain our legal services.
Contact us today to find out if a value based pricing strategy is right for your legal matter.