There are plenty of firms who want to make the shift to fixed or value pricing, but who don’t know where to start.
I’m often asked about pricing – about fixed fee in particular – and how firms can make the shift from selling time to charging for fixed prices.
So today, I’m touching on three basics:
- WHAT – The difference between fixed and value pricing
- WHY – Because clients don’t really want to buy time
- HOW – Understanding the value of the services you provide
I’ve experimented with fixed and value pricing for the last decade. Our firm was the first to introduce a flat fee structure for conveyancing in Western Australia, where rather than charging the ad valorem scale, we charged the same fee for the service, regardless of the price of the property. This led to huge competition within the industry and eventually led to the abolition of the scale that kept settlement fees up. We’ve advertised fixed prices for our productised services for many years, and charge on a value basis for our other services.
Here are the highlights:
3:28 My experience experimenting with alternative pricing
5:03 Fixed vs value pricing – what is the difference?
8:55 Why should we explore fixed and value pricing?
10:40 Understanding value and pricing on purpose
In 2 weeks time I’ll be tackling your Q&As on all things fixed and value pricing. I’ve recruited pricing expert, John Chisholm to help me work through them, so you get the benefit of both of us together! Send me your questions at lucy@lucydickens.com.au.
Shoutout to Legalite
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Links
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