In marketing my bankruptcy practice I’ve always been aware that my clients don’t have a ton of money. For that reason, they tend to be more sensitive to price than might otherwise be the case. And though I correct my legal fees based on the market to some extent, I always try to keep my clients in mind whenever I make those changes.
After all, the key to proper pricing is not solely the market – it is the value of the service to the client. It’s a classic case of supply-and-demand, with the client-side dictating demand at any given supply point.
But most lawyers don’t figure pricing into their marketing, at least not in that way. They think about their fee structure in the face of the competition, never in the cold light of valuation.
But think about it … what if your client were the one who set your legal fee? What would your client pay if you said, “Look, we’re going to take care of this matter right now without worrying about fees. When we’re done, you send me whatever you think it was worth having me aboard.”
You’re cringing, right? Thinking this is sheer lunacy, leaving the inmates in charge of the asylum. You’re convinced your clients would never voluntarily pay the amount of money you charge.
What does that tell you? It tells you that the only way you’re getting your asking price is by holding a gun to your client’s head (figuratively, of course). You’re telling them some awful thing will happen unless they fork over their money pronto. It’s a shakedown, plain and simple.
Say what you will, but if you’re not comfortable handing the fee structure over to your client then you may want to consider how you’re putting forward your value proposition in your legal marketing efforts. The customer value proposition is essentially the answer to the question, “What do I get for my money, and what’s it worth?” If you’re not building up the value of your service in your client’s mind then you’re missing the boat.
Value must be built from the very first moment you begin to market your bankruptcy practice (or, for that matter, any legal niche). You need to stand in the client’s shoes and determine what it’s worth to them to get out of debt, and exactly what you can do to build up that value to a point where it matches or (ideally) exceeds the price tag associated with your services.
Let me throw you an example. Client goes to a lawyer for a Chapter 7 bankruptcy and is told:
LAWYER ONE: I’ll do your case for you.
LAWYER TWO: Well, the first thing we’ll do is go through your income and your expenses and take a look at your financial well-being. Whatever we decide to do together, I’ll send out letters of representation to your creditors immediately so they stop calling you all the time. Then we’ll review your debts and see if there’s a way to get you out from under this pile of bills. If not, we’ll walk down the road of Chapter 7 bankruptcy. We’ll prepare the papers and review them with you to make sure everything’s accurate. Then we’ll file the case with the court and track it. I’ll prepare you for the meeting of creditors and answer any questions you have. Once the meeting of creditors is completed I’ll work with you to make sure the financial management certification is filed on time and without any hassles. When the discharge is issued I’ll send you a copy along with a copy of your bankruptcy papers, all burned on CD-ROM so it’s easy to get a copy if you need them later on. And of course, my line is always open for questions.
OK, if you’re a bankruptcy lawyer then you know both lawyers basically said the same thing. The difference is that the second lawyer proved value in advance, setting out a clear road map for the client and showing point-by-point what would be done and how it would be accomplished. No smoke and mirrors, just clarification of the process. In doing so, value is more firmly established.
If the client were given the chance to set the fee, which of the two lawyers in our example would be paid more? The tight-lipped one, or the one who was clear and established value up front?
Photo courtesy of suburbanslice.
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