An Introduction to Value Based Pricing for Legal Professionals

Introduction

Historically, solicitors have never associated the word ‘price’ with their charging.

The introduction by the SRA of transparent pricing rules in December 2018 was the first time most firms made the connection. However only a very small proportion of all law firms have a dedicated pricing function and pricing sophistication, in other words, they remain tethered to hourly rate and time-based charging. Commoditised work, frequently priced with fixed fees, seldom are arrived at by understanding the concept of price risk and all too often fail to realise the profit margin they should, and indeed result in a loss.

This 1-hour e-learning programme will reveal the all-important understanding of price risk and value pricing, differentiating it from hourly rate charging and demonstrating the considerable gains in profitability that can be achieved by adopting a sophisticated approach to pricing.

What You Will Learn

With interactive learning activities, knowledge checks and key reminder messages, the programme covers the following:

• The pros and cons or hourly rates and why they limit profitability
• What we get wrong and what we need to do to get results
• The concept of value pricing and how this applies in practice
• How critical it is to value yourselves
• Understanding price risk and how this can result in greater profit and happier clients
• The dynamics of fee risk and price, and how to fix fees profitably
• In insight into behavioural economics and why this applies to legal services as much as anywhere else

You can take each section at your own pace, picking up where you left off and are able to see your progress throughout.

The programme concludes with an assessment. Your score will be recorded and 'super-user' reporting functionality for the organisation as a whole is available in the MBL learning platform.