How To Avoid Undercharging Your Clients In Your Law Firm (Ep 75)
As a Lawyer, there have been many times where I havenât charged my clients properly as I have thought, âOh, I feel guilty because of their circumstance, or I will just quickly do that little thing, and it wonât be a big deal.â However, all of those tiny issues add up over time and also cause other issues with your client as your progress their matter or service.
As business owners, we are often more lenient, and we donât follow our procedures, making it easier for us to undercharge. However, how would you feel if one of your legal team members decided not to charge for a service they had provided on your time?
So, how do we charge a client confidently?
1.Implement an effective price strategy; This is built on the knowledge, confidence, and practice of understanding your clientâs needs - Know your client, inside out!
2.Offering a lower price wonât attract more clients; If anything, it will attract bargain-hunting clients who donât appreciate the training and experience you have had. Also, you are undercutting your value, suggesting that your service isnât worth a higher fee.
3.Your clientâs money is none of your business! It isnât up to you to decide whether or not your client can afford it; it is up to your client to determine whether they want their issue solved by your business. If they donât want the service you provide, they wonât come to you.
4.Set clear boundaries! Before the legal matter commences set clear boundaries. Ensure you have your costs agreement signed and that you have clearly explained the expectations. Charge for what is set out in your costs agreement and stick to your processes. For example, you wouldnât pay for economy seating and then sit in business class, so why are you prepared to do the same for your service? Attract the right clients and be clear about what value you are charging for and how that value will solve their legal problem.
So let me leave you with this. You pride yourself in your legal service, and you have worked hard to get where you are now. Charging a fair price allows you to do your best work, and your client deserves the best service you can provide! On the other hand, Undercharging builds resentment, which is not in your clients best interest.
Bye for now!
CONNECT WITH Caralee: LinkedIn: @caraleefontenele Instagram: @caralee.fontenele Facebook: @caraleefontenele
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