Price is a reflection of Value. The better the Value, the higher the Price.

Better Value Means Better Pricing

“Every buyer wants to lower fees, but not one wants to lower value.”

Not only does this truism encapsulate the challenge of serving clients, it reveals a law firm’s true business objective: offering value. In a capitalist economy, every consumer – whether conscious or not – asks the question: “Is this purchase worth the cost?” In other words, is the value of the purchase equal to (or greater than) the price paid? Every transaction is based on this type of cost/benefit analysis.

Buyers have four cost/benefit options when selecting counsel:
choose you, choose a competitor, do the work in-house, or do nothing.

Why choose your firm? A singular – but not simple – reason: value. Because the essence of your client relationships – acquisition and retention – is rooted in the concept of value, it is imperative that you and your firm understand your firm’s value.

Key Pricing Tactics to Increase Value

Versioning: The Beer Test

Two comparable beers are priced at $1.80 and $2.50.

With two choices, the more-expensive beer wins:

$1.80 – $2.50
20% – 80%

A third, low-cost option drove buyers to the middle:

$1.60 – $1.80 – $2.50
0% – 80% – 20%

A third, premium option shifted buyer behavior:

$1.80 – $2.50 – $3.40
0% – 84% – 16%

The result? A significant revenue gain (>10%).


If your Pricing Strategy is not helping you improve your
Firm or Practice Group Value, it’s time to take action!