April 4, 2005
How does your firm's effective rate per hour compare?
The overall mean for blended or effective rate per hour is $200.00. While effective rates will vary by region and mix of business, my experience is that those firms that are off of the mark are usually those who are not disciplined about renegotiating rates with its continuing clients. Remember, it is your money. Inadequate pricing comes right out of partner pockets. Out-of-date fee agreements amount to a discount for which you don’t get credit.
Your business and information system should help you keep fee agreements in sync with the current market price. Find out if and how your existing business system will track fee agreement anniversary dates, alert you when a review is needed, and even keep management apprised about renegotiations that have not yet resulted in a successful increase in rates. Rates aren’t the only story. Your agreement regarding expenses is also important. Recover direct and indirect costs by providing adequate pricing for soft and hard cost billed to clients.
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Filed under Law Firm Bus Model by Tom Collins
Comments on How does your firm's effective rate per hour compare?
Anonymous @ 6:59 pm
welcome to the blawgosphere, tom!