As the market evolves, more and more attorneys are reconsidering their pricing model. The traditional method of charging by the hour works best for some. However, many clients have started to look for something different: Flat fees.
Flat fees are predetermined, total fees that are paid upfront before work begins. They aren’t for everyone. But could they be right for your firm?
Here are 5 Reasons to Consider Flat Fee Pricing:
1. You’re in control with flat fee pricing
Flat fees allow you to be flexible with your time and work on cases the way you think is best.
- Say goodbye to minute-by-minute time tracking constraints
- No more chasing down clients for payments (clients will pay upfront!)
- You can work your way, making work-life balance easier to achieve
2. Clients struggle to manage their budgets
When you quote potential clients your retainer fee and hourly rate, they hear the numbers, but still don’t know the price. No one likes being unsure of their finances. This unsurety leads to valuable trust being lost as your clients wonder if you really need the amount of time you’re taking, each hour adding to their stress and anxiety.
Even when your clients trust your abilities and think you are the best attorney in the world, they cannot help but cringe every time their bill increases. Additionally, they may feel pressure to rush through their interactions with you, which often leads to unasked questions and increased uncertainties.
3. Flat fee pricing builds attorney-client trust
With flat fee pricing, your clients know you are not just trying to squeeze as much money out of them as you possibly can.
Many people don’t know what they should be looking for when they search for an attorney… so they shop on price. The law firm that is able to quote a potential client one flat fee upfront, has the upper hand. Potential clients find a great deal of value in being able to work you into their budget without worrying about being hit with surprises.
From a client’s perspective: flat fees show that you care about them, not just their wallet.
4. Predictability helps you scale your law firm
It’s not easy to predict future income when charging by the hour. Sure, it can be done. But with flat fee pricing, it can be done much more easily.
With hourly rates, both the number of cases you’ll have and the amount of time you’ll spend on them are unknown variables. Flat fee pricing gives you a much steadier idea of your potential income on a case-by-case basis by removing that second variable.
5. Flat fee pricing is an easier sell
At the end of the day, your clients aren’t really paying you for your time. They’re paying you for the value of the work you do for them on their case. They care how long it takes you, but only because it directly correlates to their final bill.
The majority of people don’t have much experience searching for attorneys. The majority of people don’t have unlimited funds either. Unfortunately, an hourly rate can feel like an unlimited price.
Firms who adopt flat fee pricing gain the advantage of being able to tell their potential clients: “Here’s what you’ll pay. No surprises.”
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Flat fees won’t work for everyone, but attorneys who handle estate planning, contract reviews and drafting, DUI cases, Bankruptcy, etc. are prime candidates. Does your firm use any flat fee pricing? We would love to hear your thoughts!