Pricing and Proposal Development

A simple, well-built pricing model can offer true insight into a firm’s ability to compete for both hourly and non-hourly billing opportunities. In some instances, however, a creative billing approach can be the only chance a firm has for securing desired work.

We help our clients answer the tough questions that can help them secure new work or fight off a competitive challenge. Here are a few of the more common dilemmas.

  • Will the rate decrease to the current partner rate be offset by an increased associate rate? Will the increased volume lead to enough profit to compensate for the changes in rates? What impact does increased volume have on payroll and overhead costs per hour?
  • Will the increased volume lead to enough profit to compensate for the changes in rates?
  • What impact does increased volume have on payroll and overhead costs per hour?

It is our experience, that pricing decisions are too often made on the perception of what competitors charge. Often this is a mistake and can lead to permanent profit reductions.

Close enough may work in a game of horseshoes. Miss the mark by 5% – 10% in a pricing decision, and your firm may not get the work. Or worse, you may win the bid and suffer the loss

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Benefits

What can you can gain from or advice when making a pricing decision and what can PerformLaw do for you?

The Process

How does a pricing and proposal development engagement work?

Resources

Where can I learn more about the topics I might want advice about?

Benefits

The confidence of knowing that you are working with an experienced partner. Clients who engage PerformLaw to analyze pricing decisions get objective, experienced, and practical advice about how to effectively price services.

The ability to efficiently create a pricing model. Use of our tools, templates, proven processes, and management expertise are included in the engagement.

A solution for the long term. All our engagements are designed to raise the level of in-house competence and promote self-sufficiency.

The ability to continue to focus on your daily responsibilities while we focus on supporting client service improvements. Successful lawyers are busy and must focus on client priorities. We can help you and your management team minimize the distractions that special projects can cause.

What PerformLaw can do for you:

  • We create a process to effectively evaluate different pricing scenarios.
  • We help define and consider the strategic implications of different pricing models.
  • We provide easy to understand analysis and processes tools.
  • We help identify and address weaknesses in your current systems.
  • We are available when clients need us; before, during and after an engagement.

THE PROCESS

INITIAL DISCOVERY & INFORMATION REVIEW

Historical Billing and Collection Data (as relevant)

Workload Distribution by Client or Matter

Billing Rate (Pricing) Information

Payroll Data (as relevant)

Financial Statements

Employee List

Hire and Termination Dates

Case Mapping Data (Typical Case Components)

Logical Task Lists by Case Type

Estimated Time or Value of each task

Anticipated Volume by Case Type

FEE STRUCTURE ANALYSIS

Hourly

Blended Rates

Timekeeper Rates

  • Specific
  • By Type
  • By Experience
  • By Specialty

Flat Fees

Per Case

Per Task

Subscription-based Services

Contract Support

Payment Agreement

Agreement Review

Opt Out Provisions

Volume Guarantees and Limitations

Upcharges and Change Orders

Pricing Recommendations

PROFITABILITY OF PRICING ALTERNATIVES

Hourly

Flat Fee

Hybrids

Subscription-based Services

BILLING RATE STRATEGY

Profitability & Overhead

Market Considerations

Performance

Increases & Adjustments

PROPOSAL DEVELOPMENT

Opportunity & RFP Analysis

Fee Setting

Client Staffing

Value-added Service Identification

Resources

NOT SURE WHERE TO BEGIN?

Here are some of our most helpful resources to learn more about ..........

Knowledge Base

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Resources