The what, why and how of fixed and value pricing (ep 32)
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: My experience experimenting with alternative pricing Fixed vs value pricing – what is the difference? Why should we explore fixed and value pricing? 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 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 lion’s share of what you bill and enjoy complete freedom to run your practice the way you want. Links * Download my brand new e-book 80 tips to make your law firm survive and thrive* Subscribe to Doing Law Differently on Apple Podcasts, Google Podcasts or Spotify * Discover how I can help you escape the billable hour, eliminate the grunt work and do more of the work you love with productised services * Connect with me on LinkedIn * Are you keen to share how you’re Doing Law Differently? Get in touch here.