CHICAGO, ILLINOIS —The Association of Legal Administrators (ALA) has released its first in a series of white papers.
The paper titled, “The Client Cost Conundrum: Legal Service Pricing in a Post-Recession Market” identifies economic factors that influenced relationship changes between clients and law firms after the Great Recession.
“This research pinpoints current legal service pricing best practices, highlights pricing strategies that can attract and retain clients, and can help legal management professionals learn to address efficiency and other factors that may affect a multitude of pricing scenarios,” says Oliver Yandle, CAE, ALA Executive Director.
The white paper takes a deep dive into pricing strategies, particularly the ways in which law firms must take efficiency measures into account. Firms cannot simply lower prices; they must also look at how services are delivered. Some firms are working to better understand their clients’ unique preferences to better inform their pricing strategy:
- 85 percent are initiating direct conversations about pricing and budget
- Nearly three-fourths of firms are participating in client industry groups and events
- 30 percent have a formal client survey program to obtain feedback
- 24 percent undergo post-matter reviews
The white paper analyzes pricing strategies not just in law firms and departments but also compares them with other industries. Interviews for the paper include such thought leadership as Amar Sarwal (Association of Corporate Counsel’s Vice President and Chief Legal Strategist), Colin Jasper (Jasper Consulting Director), Andrew Perlman (Suffolk University Law School Institute on Law Practice Technology and Innovation Director), Barron Henley (Partner at Affinity Consulting Group), Robert P. Hartwig, PhD, CPCU (President and Economist at the Insurance and Information Institute), and Tim Corcoran (Corcoran Consulting Group, law firm profitability consultant and former Legal Marketing Association President), as well as others with consultants from the insurance industry, accounting industry and other associations.
This white paper is the first in a series of legal industry white papers in which ALA will deliver knowledge and insights in critical areas within the business of law.
“While positioning our association and members as leaders in the business of law, these white papers will identify hot topics that are currently trending in the legal management industry, provide detailed information and analysis of the topics’ impact, and outline actionable solutions,” says Yandle.