Value-Based Pricing in the Legal Sector

Introduction

• Speaker: Sha Jardine, a 'recovering lawyer'
• Former CEO of Breon’s Rugby Banry Bis
• Began involvement in value-based pricing in 2017
• Mention of a value-based pricing survey conducted

Survey Details

• 53 firms responded so far
• Seeking more responses to understand pricing and confidence in the residential sector
• Results shared as snapshots across various areas

Confidence in Work

• 96% believe their work helps clients
• High confidence in residential sector pricing

Charging Models

• Nearly 60% feel the firm's charging model reflects brand values
• Comments highlight targeting high net worth clients and offering premium services
• Concerns about competition undervaluing service

Dealing with Price Objections

• Importance of justifying charges and handling objections effectively
• Empowering staff to discuss and decide on clients not worth acting for

Profitability and Firm Finance Understanding

• Low awareness of how decisions impact profitability
• Importance of training staff on financial impact and profitability

Introduction Fees and Profitability Improvements

• Introduction fees standard practice but needs clarification
• Training on using data and understanding practice management systems

Time Recording Policies

• Mixed views on time recording, especially in fixed price environments

Client Account Interest

• Importance varies; awareness needed about possible changes in regulation

Pricing Challenges and Opportunities

• Main barriers: management resistance, local market conditions, self-confidence
• Encouragement to increase prices where possible

Training on Pricing

• Often ad hoc or non-existent
• Need for consistent, organized pricing training when onboarding new staff

Pricing Models

• Fixed price agreements with varied service levels rare
• Need for regular review of pricing strategies

Firm's Mindset

• Some firms push for accepting all work; need a balanced approach
• Encouragement to empower lawyers to decline unprofitable work

Training and Development

• Need more training on value-based pricing
• Varied responses to pricing strategy implementation

Market Outlook

• Conveyancing market expected to be stable or busier
• Number of conveyancing lawyers may decrease, driving up prices
• Confidence in pricing and the importance of ongoing review and adjustment

Final Points

• Need for firm commitment to better pricing strategies
• Encouraging lawyers not to undersell their services
• Importance of asking for higher prices
• Mention of Sha Jardine's book for further reading

Q&A and Closing

• Speaker available for questions during breaks
• Emphasis on leveraging the survey data to drive improvements

Notable Quotes

• "The market is your self-confidence."
• "You will never get the pump fist price unless you ask for it."