Toby Brown and Jill Nelson say that the pricing function in large law firms emerged more than 10 years ago but there is still not an accepted pricing discipline or model on how this function should be applied in firms.
The authors of the article, The State of Legal Pricing: Whither Rational Pricing? use the word ‘chaos’ to describe the state of pricing behaviour in law firms. Why?
First, in our experience, there are not a lot of easily comparable legal service offerings from firm to firm, or even from matter to matter within firms. Litigation in a given category has a broad range of service types and pricing levels. From the highly complex to the mundane, prices vary to a significant degree.
What is the Pricing professional’s role? It can include:
- Client Fee Discussions & Negotiations
- Partner Coaching
- Budget Building
- Pricing Development
- Monitoring and
- Process Mapping, Process Improvement, Project Management & Practice Innovation
… the most important function of a pricing role [is] that of developing a rational pricing strategy. In part this means capturing pricing deals as they occur and monitoring them over time. Without this basic knowledge, firms will not learn and improve their pricing strategies over time.
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