Pricing is difficult, in any field. Pricing professional services is so difficult that most professionals don’t even do it, choosing instead to bill their time. But this problem isn’t just limited to professionals. Software designers and app developers face the same problem. Which makes sense, if you think about it, because software is just knowledge [...] Read more – ‘Learn about pricing in the App Store’.
Longtime readers know that I’m a big Boston Red Sox fan. So whenever I can use the Sox to make a point here, I will. Whatever works. The Red Sox were supposed to be the team to beat this season. Almost all the pundits predicted them to win the American League pennant this year, given [...] Read more – ‘11 innings vs. 11 years’.
Vanessa is a senior litigation associate at a large Northeast law firm. She is a hard worker, a good writer, and a very intelligent young woman. She bills at $575 an hour. She carefully tracks her time. One afternoon, she is working on a summary-judgment brief. She is focused on a tricky jurisdictional issue that [...] Read more – ‘Billable showers’.
There are only two kinds of lawyers in the world: Lawyers who price, and lawyers who don’t. Everything else is lip service, or window dressing, or sleight of hand. Lawyers who price work very hard to try to figure out what their client’s needs are and what the value is to the client of satisfying [...] Read more – ‘Two kinds of lawyers’.
There are three ways — and only three — to reduce your company’s spending on outside law firms. Two will seem fairly obvious, and they are the most common methods used today by far. They are also fraught with problems: some obvious, some less so. The third way avoids these problems, but it is hard [...] Read more – ‘The only three ways to lower outside-counsel spending’.
To figure out how good your lawyer is, give him or her the following test. It only has a single question, so it will only take about three seconds to administer. On the other hand, it will take considerably longer to answer. And it should. Here it is: Question One How much will this cost? [...] Read more – ‘A one-question test for your law firm’.
This is the question I hear the most. (It isn’t, sadly, “How did you get to be so flippin’ handsome?” That’s second.) Unsurprisingly, I get this question mostly from other lawyers, and sometimes from in-house counsel. They ask this question because my firm, Shepherd Law Group, stopped billing or even tracking hours back in 2006. [...] Read more – ‘“How do you set your prices?”’.
Law firms don’t know how to price their knowledge, which is the actual thing they sell. Instead, they end up billing for their activity after the fact. They charge for the few hours of activity instead of the years it took to gain the knowledge and experience. This causes enormous problems for both firm and [...] Read more – ‘The problems of not pricing knowledge’.