Price. Price. Price.

As in real estate with position, so in law, the top three challenges facing law firms are all price related (1):

1. Negotiating price with clients (Price)

2. Winning new business (Price is a key element)

3. Competing with other firms (Price is a key element).

When we talk to firms in other professions, we hear the same story. Even in consulting engineering, where the demand side is the strongest in years and resourcing are a challenge, firm leaders tell us there is still big price-down pressure.

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Why 82% of clients choose more expensive firms

‘Why 82% of clients choose more expensive firms’ written by Paul Hugh-Jones, my partner, explains a crucial piece of  empirical evidence about the buying behaviour of clients of larger law firms. Paul writes: “When beaton presents our beatonbenchmarks™ reports, the section about why clients appoint a more expensive law firm often gets the most attention, challenge and interest.

Of course, this doesn’t mean that 82% of corporate clients always choose a more expensive law firm, but it does mean that they are open to selecting firms based on demonstrated value rather than price.

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