Last week, I focused on the stupidity of competing on price as opposed to competing on quality and service. And I understand, young lawyers believe all they have is the ability to compete on price. More experienced lawyers believe they have to compete on price because today’s clients don’t care about anything but price.
You can convince yourself of anything. As for price, convince yourself of this — continue to compete on price and you’ll spend your career becoming the cheapest lawyer in town.
Now let’s talk about using the competition as a resource….
A plumber once told me, “There’s price, quality, and service — I can only give two. Pick which ones you want.”
In the service business there are those that focus on beating the competition the easy way — price. Quality and service are often assumed by unknowing clients who believe that a $500 lawyer is going to offer the quality and service of the $5,000 lawyer (sometimes that’s true). You find out your “competition” quoted a flat fee of $10,000 for the representation, so you’ll do it for $7,500.00. You’ve determined the client is only hiring on price, and you’re good at price. You would never think to tell the client that your fee is $15,000.00. You don’t feel confident in your quality or service, nor that the client cares. You’re just trying to compete at the lowest common denominator.
Focusing on the competition is a waste of time. I see it over and over again. A group of lawyers start a niche and there is a standard fee no matter who you hire. Then some young broke stud jumps in and charges $20 less. A few years later, everyone is charging 60 percent less. No one is making money, except those that aren’t focused on the competition….
Smaller firms which compete with their Biglaw brethren on cost often promote their efficiency and lower overhead. Understandably, these firms impliedly or expressly try to associate lower overhead with lower fees for their clients. Smaller firms have been so successful with this approach that overhead often seems to connote waste and inefficiency. But overhead is sometimes a necessary evil, and it behooves small firm entrepreneurs to remember the “necessary” aspect as well.
For example, forsaking a physical office in favor of a virtual shop obviously lowers a firm’s overhead and allows the firm to offer lower fees. But many people, including me, have written about the several benefits of having a physical office. I pointed to benefits such as credibility with clients and other lawyers, and helping yourself stay motivated and focused. This is an easy example of how lower overhead may impose a hidden cost on the business.
Of course, the biggest overhead expense for most law firms is payroll. Limiting the number of employees is the surest way to keep expenses under control. But is it always the right move?
Once upon a time there lived a fisherman named Jay Dee. Every day Jay went to Lake Beeglaw to fish. Lake Beeglaw was the biggest lake in the entire country, and it was home to the biggest fish. Just one fish from Lake Beeglaw could feed a family for weeks. Consequently, Lake Beeglaw was the most popular fishing lake in the country.
But fishing at Lake Beeglaw was hard for Jay. Because the lake was so popular, Jay had a very difficult time even finding a place to cast his line. Jay had only a small canoe, and the bigger and more established fisherman all had big commercial boats. Whereas Jay used a simple fishing reel, many of the other fishermen used nets. Jay sometimes went weeks without receiving a bite, much less catching a fish.
One day, Jay decided to leave Lake Beeglaw and find another, less crowded lake…
Law bloggers, including me, spend a lot of time talking about the economics of being a lawyer. This site voraciously covers news about salaries and bonuses, and often opines about the financial value of a law degree. I, too, often write about some particular financial aspect of managing a litigation boutique.
But as I have told countless prospective and current law students, if you’re in it for the money, you’re in the wrong profession. And this was true even in the glory days when six-figure bonuses were routine, and when students were only half joking when they called for starting salaries of $190,000 per year.
Virtually no amount of money can justify tolerating everything it means to be an attorney. Ask someone like Will Meyerhofer. The billable hours, the deadlines, and the overall stress makes many attorneys question why they ever went to law school in the first place. Dear 16 year old me…
For the next few months, I am working and living in San Francisco. It’s not surprising, but I have met some interesting folks since I moved here. And, I have learned not to sit down on any public space.
It is safe to say to that it is a different world here than in Chicago. This difference, I have learned, is present not only outside of the office, but inside as well. How? No, people do not go to work naked (at least not many). According to several small-firm attorneys, this difference manifests itself in a work culture that stresses healthy competition in a supportive environment.
Let’s examine this difference in a little more detail….
Isn’t it annoying when the YouTube video you’re watching just stops loading right in the middle? Or when your Skype connection suddenly starts sucking in the middle of a video conversation?
Well, it turns out that in Europe, sometimes stuff like that doesn’t happen accidentally. Internet Service Providers intentionally “throttle” certain kinds of web traffic.
The European Union is sick of this. On Tuesday, the European Commissioner for Digital Agenda threatened new legislation and public humiliation for companies that don’t allow consumers easy access to a free and open Internet. That’s right, kids; the net neutrality debate is hot in Europe, too….
The holiday season is upon us, and yet again, you have no idea what to get for the fickle lawyer in your life. We’re here to help. Even if your bonus check hasn’t arrived yet, any one of the gifts we’ve highlighted here could be a worthy substitute until your employer decides to make it rain.
We’ve got an eclectic selection for you to choose from, so settle in by that stack of documents yet to be reviewed and dig in…
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: email@example.com.
We currently have a very exciting and rare type of in-house opening in China at one of the world’s leading internet and social media companies. Our client is looking for an IP Transactional / TMT / Licensing attorney with 2 to 6 years experience. The new hire will be based in Shenzhen or Shanghai. Mandarin is not required (deal documentation will be in English) but is preferred. A solid reason to be in China and a commitment to that market is required of course. This new hire will likely be US qualified (but could also be qualified in UK or other jurisdictions) and with experience and training at a top law firm’s IP transactional / TMT practice and could be currently at a law firm or in-house. Qualified candidates currently Asia based, Europe based or US based will be considered. The new hire’s supervisors in this technology transactions in-house team are very well regarded US trained IP transactional lawyers, with substantial experience at Silicon Valley firms. The culture and atmosphere in this in-house group and the company in general is entrepreneurial, team oriented, and the work is cutting edge, even for a cutting edge industry. The upside of being in an important strategic in-house position in this fast growing and world leading internet company is of the “sky is the limit” variety. Its a very exciting place to be in China for a rising IP transactional lawyer in our opinion, for many reasons beyond the basic info we can share here in this ad / post. This is a special A+ opportunity.
If your firm is in ‘go’ mode when it comes to recruiting lateral partners with loyal clients, then take this quiz to see how well you measure up. Keep track of your ‘yes’ and ‘no’ responses.
1. Does your firm have a clearly defined strategy of practice groups that are priorities of growth for your office? Nothing gets done by random chance, but with a clear vision for the future. Identify the top practice areas for which you wish to add lateral partners. Seek input from practice group leaders and get specifics on needs, outcomes, and ideal target profiles.
2. In addition to clarifying your firm’s growth strategy, are you still open to the hire of a partner outside of your plan? I’ve made several placements that fit this category. The partner’s practice was not within the strategic growth plan of my client, but once the two parties started talking with each other, we all saw how it could indeed be a seamless fit. Be open to “Opportunistic Hires.” You never know where your next producing partner might come from, so you have to be open to it. I will be the first to admit that there is a quirky element of randomness in recruiting.
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