Pricing tip of the month: To bid a fixed price, focus on future costs, not past costs

As fixed fee arrangements become more common, some firms have tried to improve their bids by making enormous investments in data mining to analyze what they have charged in the past for various types of matters.  But as the Association of Corporate Counsel noted in their ACC Value-Based Fee Primer (p. 31): “Reference to just historical data will likely include junk data and sub-optimal billing practices.”  To win work in an increasingly competitive marketplace, lawyers must plan future budgets in a new way, with the right people doing the right work to deliver the quality that clients need at a lower cost.

 

The first Wednesday of every month is devoted to a very short and simple tip like this to help lawyers increase efficiency, provide greater value to their clients and/or develop new business.