Back in episode 32 (before the coronacrisis hit!) I spoke about the what, why and how of fixed and value pricing. That episode was so popular that it sent the podcast back into the top 10 of the Apple Podcast charts!
I put out a call for your questions on all things pricing and in this episode I’m tackling those questions along with pricing expert, John Chisholm. From understanding value and working out what to charge to measuring staff performance, we’ve got all your FAQs covered!
John Chisholm describes himself as a “recovering lawyer”. He’s spent the last 15 years urging lawyers not only to stop billing their services by time, but to also burn their timesheets. He works with professionals to assist them with a mindset change and the practical implementation of value-based pricing.
John is a Senior Fellow at the VeraSage institute, and co-founder of The Innovim Group, an organisation which runs aligned pricing programs and helps firms with their pricing transformation.
Here’s the questions we tackle:
2:56 John’s view on fixed pricing: yes or no?
4:53 What is menu pricing?
5:53 How do I work out the value of my service?
8:10 What kind of questions should we ask to understand value from the client’s perspective?
11:58 How do you decide the price?
15:00 Can or should we still record time?
18:54 How do you know breakeven?
22:55 How do you avoid falling back to calculating by hours worked?
26:25 What KPIs do firms track to work out employee bonuses if they’re not tracking time?
28:08 Can you offer both fixed and timed pricing?
22:54 For standardised services, should law firms put prices up on their websites?
37:48 When you commit to value pricing what other areas of your business also change?
Thanks to Legalite!
This episode is brought to you by Legalite Horizons, a new model giving principal-level lawyers the platform to grow their practice while being fully supported. Join a recognised, award-winning law firm with access to infrastructure and support. Best of all, you’ll get to keep the lions share of what you bill and enjoy complete freedom to run your practice the way you want. Find out more here or listen back to episode 24 with Marianne Marchesi here.
Links
- Listen back to episode 32 – The what, why and how of fixed and value pricing
- Download your copy of my new e-book, 80 tips to make your law firm survive and thrive
- Connect with John Chisolm via LinkedIn and VeraSage Institute
- Subscribe to Doing Law Differently on Apple Podcasts, Google Podcasts or Spotify
- Connect with me on LinkedIn
- Are you keen to share how you’re Doing Law Differently? Get in touch here.
