There is a huge interest in fixed-price legal services. We have new clients asking us for specific costs daily. According to recent research, two out of three law firm clients want flat fees, yet most firms persist with the long-maligned hourly rate model.
Indeed, in the Legal Trends Report’s corresponding survey of law firms, 97% offered hourly billing, while just 36% provided any type of fixed-fee arrangement.
Given that demand for fixed-price legal services work is double the current supply, making a move to fixed pricing or flat fees could bring your law firm a significant competitive advantage. (Not to mention the business benefits of simplified billing and more predictable budgets.) But given that hourly billing is so engrained in the legal profession — from how we charge clients to how we reward and motivate lawyers — it’s not always a simple transition.
Here are seven lessons we can share from our experience.