One of the questions we answer a lot is, “How should I be pricing my services?”
It’s a question attorneys constantly ask because most follow the traditional pricing model. They look to the left, look to the right, and then pick a price they see others using or they feel isn’t too high.
The problem with that pricing method is that it lets your competitors determine your price.
When said that way, it doesn’t make much sense, right?
“Bob is charging $250 per hour and Mary is charging $350 per hour. I want to be reasonable, so I’ll charge $300 per hour.”
Is that really a way to price your services?
Think about the value you deliver to your clients. Isn’t it better to base your prices on the value you provide, rather than the price of your competition?
We’ve found that if you can gather the confidence to ignore what the rest of the market is doing and set up a marketing process that positions you as a thought leader, you can gain a tremendous amount of price elasticity.
Some lawyers may shut down when they hear this and think that people only buy based on price.
Just because that’s your mindset doesn’t mean it’s your client’s mindset. You’re probably seeing a self-reinforcing behavior where you’re competing based on price and attracting the kinds of clients that are shopping based on price.
The reality is, there’s a significant portion of the market that doesn’t make choices based on price.
They base their choices on relationship and value.
If you’re feeling price pressure or getting into a lot of price negotiations, there’s probably something in your marketing and sales process that isn’t positioning you as an expert who could only be obtained at a premium price.
I want you to challenge the assumption that your price should have anything to do with your competition. It’s the wrong way to think and it displays a lack of pricing confidence.
When you set up your marketing processes in the right way, the decision to hire you shifts from price to the value you deliver your clients.
If this has been helpful to you, visit practicealchemy.com/freedom to book a 10-minute call with our Practice Growth Team. We can talk through where you are in your practice, how you can grow, and see if or how we can help you.