Fee talk is difficult for many lawyers especially if they’re a solo-practitioner who has only recently opened a law office. But knowing how to discuss legal fees with clients will positively impact the long-term financial stability of your law firm. Let’s take a look at some of the best practices for discussing your fees.

New Clients

When taking on a new client consider the following:

• Justify your fees beforehand. Before you get to the discussion about your fees, you should have already sold the client on your worth. Use the combined experience and skills of your legal team to show the client that your law firm is worth every penny.
• Use case studies. At Smokeball, we provide Smokeball case studies to our clients. It a great way to talk about what you’ve done for past clients who faced similar legal problems. Discuss their issues, your legal approach, and the cost associated with the process.  This helps the client understand how your fees are directly related to the complexity of their case and the amount of work their case will demand of you and your legal team. But if you’re using case studies as an example for fees, be sure to remind the client that because each case is different fees may vary.
• State your fee confidently. Never apologize for the fees you’re charging. One way to insure that you remain confident about your fees is to calculate them accurately ahead of time. This is especially true if you’re newly practicing law independently or if you’re restructuring your existing law firm. You want to make sure your fees are structured so that they cover your costs and provide a profit.

Address Discount Requests

Many people who are inexperienced with using an attorney may balk at the price of legal fees. Whatever you do, don’t get in the habit of discounting your fees, even if you’re desperate for business. Below are a few tips on how you can address fee reduction requests:

• Get to the bottom of their reasoning. Why do they want a discount? Is it because the fees are outside their budget? Or, is it because they don’t believe that the legal services offered are worth the price? If it is the latter, then you may only need to explain your process in more detail to help them understand what value they will get for the price.
• Discuss delegation. If you’re working with a team of attorneys, you may want to consider referring the case to a less experienced lawyer. This strategy may offer an opportunity to give a cheaper fee. Just be sure to frame your offer in the right way. You’re not offering a discount but you are referring the case to a junior attorney who can do the work for a lower fee.
• Let the client go. Always be prepared to release any client who can’t afford your fees or who is not willing to pay you a fair rate. Just be gracious and respectful about it.  Remember, your time is worth money, so don’t let anyone waste it.

To avoid fee haggling, always be very clear about your process and transparent about what the true cost of legal work is for the client’s case.

Read more from Smokeball – Case Management Software for Small Law Firms.

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Jane Oxley is President of Smokeball, a productivity and case management software provider that increases efficiency and profitability for solo attorneys and small law firms. Jane’s worked in the legal field for her entire career, spending over 20 years engaged with small law firms. She has a strong affinity with small law firms and the crucial role they play in the communities they serve and is passionate about helping them work towards more productive and less stressful practices.