Costs lawyer shares best practice recommendations to help SME law firms scope cases effectively to boost their profits
Costs lawyer shares best practice recommendations to help SME law firms scope cases effectively to boost their profits.
Lynsie Whyke
Lynsie Whyke, founder of Chantry Costs Consultant, spoke to Amy Bruce, head of marketing at Osprey Approach, about how law firms can achieve success and boost profits by implementing the right pricing model.
In this conversation, Lynsie shares two decades’ expertise and offers her insights about how SME law firms can maximise profits and run a successful law firm by scoping, pricing, recording time, and charging clients effectively.
The conversation covers:
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- How to manage pricing and costing effectively
- The best practices for scoping a case and how to avoid ‘scope creep’
- How to record time more accurately
- The importance of knowing your worth and how to charge accordingly
Top three things all fee earners and management should know about managing pricing and costing effectively
Lynsie believes there are three ways to achieve effective pricing and costing, namely:
1. Don’t price through fear
2. Spend more time on scoping
3. Avoid complaints
Four best practices for scoping a legal case
Lynsie shares her approach to scoping out a case to ensure value for all parties:
* Breakdown fees into sections or phrases – assign fixed fees
* Identify what you need to know and ask the right questions at the beginning so that you can price more accurately
* Outline for the client what the work does and doesn’t involve to set clear expectations
* Consider the client synergies – potential difficulties or issues may need to be factored into the cost
Lynsie advises:
“There’s no rule that says you have to give a fee for the entire process.
“So, if you don’t know what’s going to happen at a certain point, don’t give your client a quote beyond that stage.
“Spend a few minutes before you have that conversation with your client.
“Work out what you actually need, and what information you need from the client, in order to give an accurate price.
“If they want to know from you the price before they’re giving you any information, that’s a little bit of a red flag, and potentially not the sort of client that you really want to work with.”
Lynsie also recommends ways to avoid scope creep when it comes client matters and their management; how to time record more effectively to increase billable hours; what to consider when implementing a pricing strategy at your law firm; and the essential three components needed to price a firm’s services effectively.
Boosting law firms’ profitability with a well-communicated pricing strategy and empowered fee earners
Running a successful modern law firm requires several components to connect and work in harmony. Setting a pricing strategy, defining how you’ll serve your clients, and empowering an effective team are fundamental to running a profitable legal business.
Without the right digital tools, sufficient time to scope, and training on the right questions to ask, employees feel pressured to win work, which leads to increased write-offs, heavy discounts, and unsatisfied clients.
For more insights and advice, read the full interview with Lynsie now and discover how to empower your team to scope a case and communicate your firm’s value. You can also discover Lynsie’s exclusive advice on the benefits of investing in costs and pricing training.
Kindly shared by Osprey Approach
