On June 26 two simple words announced the arrival of a new law firm pricing database.
“Hello World!” was the first tweet from the industry’s most recent pricing database, LegalDatum. It joins ALM, Thomson Reuters, TyMetrix and Valeo as software tools that aim to provide competitive intelligence regarding attorney fees. Unlike the current four, LegalDatum uses a voluntary, self-reporting survey methodology to collect data and report its findings. The other databases rely on publicly available court records which detail individual attorneys’ billing rates.
LegalDatum is a joint veture of Validatum, a UK-based law firm pricing consultancy, and Beaton Capital, an Australia-based strategic and financial consulting firm for professional services.
These pricing databases help law firms understand their position in the marketplace and especially in the minds of their prospects and clients. Knowing your competition’s price helps you in three significant ways:
- Reference Price: because prospects/clients know your competitors’ pricing, their frame of reference affects their willingness-to-pay; therefore, knowing their reference helps you in your pitches and negotiations.
- Next-Best Alternative: because economic decisions are based on choices, prospects/clients have at least one back-up provider; therefore, knowing your prospects’/clients’ other choice(s) helps you understand their willingness-to-pay.
- Brand Positioning: your price sends a message to the marketplace about your value, which needs to be consistent with your value and your market positioning; therefore, knowing your competition and their pricing helps you maintain your desired position.
Pricing (Hourly Rates) Resources
- Billing Rates Database by ALM (WEBSITE)
- LegalDatum (WEBSITE)
- Public Rates by Thomson Reuters (WEBSITE)
- RateAnalyzer by TyMetrix (WEBSITE)
- Valeo Attorney Hour Rates and AFA Database (WEBSITE)
TyMetrix’s also publishes an annual benchmarking report: Real Rate Report (WEBSITE)