Are you charging for the value you add? In the second episode of our Legal Sector Resilience podcast, I wanted to explore a fundamental element of legal services – putting a price on the value lawyers and law firms add, and having the confidence to charge for it.
If you, as an individual or business, need a legal problem solved, it’s likely you’ll pay for it, especially if it’s complicated and required to meet a certain timeframe. Sometimes, clients aren’t always easy to work with, often the timescales move and work has to be juggled. In nearly every case, there’s an added complexity. This adds to the workload, can affect the wellbeing of the lawyer or team and possibly affect other clients. Recruitment and retention continue to challenge firms – and workload is often cited as a significant reason for leaving.
But imagine this; you’re paid properly for the work that you’re asked to do, in the timeframe you need to do it, relevant on the resources you have to hand. You also happen to value that work, and if you don’t (more normal than you might think), at least you’re being paid well to do it.
From the client’s perspective, their ‘outcomes’ are based on the problem you solve for them – so if value to the client isn’t a time-based measure, and they are happy to pay for the value you bring, why are law firms not considering value based pricing?
According to an ‘unashamed disruptor’ of the legal sector, Shaun Jardine, Director, Big Yellow Penguin, increasing numbers of law firms are moving towards value based pricing, and the benefits are vast. These include being able to procure better quality work, generating more profit while looking after and retaining talented lawyers, to building better relationships.
It isn’t a case of simply ‘upping your prices’, there’s a real cultural shift that comes with a value pricing project and, believes Shaun, benefits for both lawyers and clients.
In episode two of our Legal Sector Resilience podcast, I spoke to Shaun about Value Pricing which, he says, is no more than having a conversation with a customer and agreeing a price that is fair to both the customer and the law firm, a price that reflects value for both parties.
We talk about why law firms should adopt Value Based pricing, bust some myths on the subject and explain how your law firm can start working on an essential project that can fuel cultural change, lawyer satisfaction and business resilience.
Value pricing: why it matters – stream now
To stream episode 2, scroll down or click on the feed to stream from your favourite podcast player here. Don’t forget to favourite / follow our podcast channel to hear more!
Shaun’s profile and contact details can be found below.
Our greatest thanks to Shaun Jardine, Big Yellow Penguin, for joining me for this podcast. If you could like a copy of the reports he mentions in the podcasts, or to speak to Shaun about Value Pricing and his work with the legal and professional services sectors, click here for more information.
More podcasts
- To view and stream our Legal Sector Resilience Podcasts, click here.
- To view and stream ‘The F*Word‘ – a podcast series demystifying and exploring Finance, with RBC Brewin Dolphin, click here.
Encouraging businesses to adopt ‘carte blanche to change’
As a solicitor, commercial director, and former law firm CEO of a top 250 law firm, he has a unique insight into what makes law firms tick and how to exploit the good bits and ditch the bad.
Shaun’s mantra is “what you do today, will determine your tomorrow.’
Shaun founded Big Yellow Penguin (BYP) in 2021 with the aim of encouraging and helping lawyers and law firms to move on from the 20th century and adopt practices, including value pricing, which will make their futures more secure, both financially and operationally, and enjoy practising their craft again. To contact Shaun or to read more, visit his website, here.
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