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….
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 seven years. You can reach them by email: email@example.com.
Please note that Evan Jowers and Robert Kinney are still in Hong Kong and will stay FOR THE REMAINDER OF THIS WEEK. We still have a handful of available slots for meetings with our Asia Chronicles fans. If we have not been in touch lately, reach out and let us know when we could meet! There is no need for an agenda at all. Most of our in-person meetings on these trips are with folks who understand that improving a legal practice through lateral hiring is an information-driven process that takes time to handle correctly.
Regarding trends in lateral US associate hiring in Hong Kong, we of course keep much of what we know off of this blog. Based on placement revenue, though, Kinney is having one of our most successful years ever in Asia. We are helping a number of our law firm clients with M&A, fund formation, cap markets, project finance, FCPA and disputes openings. These are very specific needs in many cases, so a conversation with us before jumping in may be helpful. As always, we like to be sure to get the maximum number of interviews per submission, using a well-informed, highly targeted, and selective approach, taking into account short, medium and long-term career aims.
Making a well informed decision during a job search is easier said than done – the information we provide comes from 10 years of being the market leader in US attorney placements at the top tier firms in Asia. There is no substitute for having known a hiring partner since he/she was an associate or for having helped a partner grow his or her practice from zip to zooming, and this is happily where we stand today – with years of background information on just about every relevant person in all the markets we serve, and most especially in Hong Kong/China/Greater Asia. So get in touch and get a download from us this week if we can fit it in, or soon in any case!
The legal industry is being disrupted at every level by technological advances. While legal tech entrepreneurs and innovators are racing to create a more efficient and productive future, there is widespread indifference on the part of attorneys toward these emerging technologies.
When the LexisNexis Cloud Technology Survey results were reported earlier this year, it showed that attorneys were starting to peer less skeptically into the future, and slowly but surely leaning more toward all the benefits the law cloud has to offer.
Because let’s face it, plenty of attorneys are perhaps a bit too comfortable with their “system” of practice management, which may or may not include neon highlighters, sticky notes, dog-eared file folders, and a word processing program that was last updated when the term “raise the roof” was still de rigueur.