tag:blogger.com,1999:blog-22277549.post6986916752117834894..comments2023-08-25T03:39:09.015-04:00Comments on Inside the Firm of the Future: Top 10 Reasons Why Professionals Don't "Get it" When it Comes to Pricing and Service!Christopher Marstonhttp://www.blogger.com/profile/11091974667607891404noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-22277549.post-49204860772377203982010-03-05T08:17:08.404-05:002010-03-05T08:17:08.404-05:00hi Great blog very interestinghi Great blog very interestingAlexanderhttp://www.snapperrecruit.com/noreply@blogger.comtag:blogger.com,1999:blog-22277549.post-19428102426819233632007-06-30T07:14:00.000-04:002007-06-30T07:14:00.000-04:00Do you use timesheets internally?I am having troub...Do you use timesheets internally?<BR/>I am having trouble letting go of timesheets for internal firm management and am not sure if I should even be trying to. <BR/><BR/>Externally we fixed-price our services, but if I really think about it we arrive at our pricing by asking ourselves 1) what is a client willing to pay and 2)will it be profitable enough for it to make sense for us to service it. It is that second part that requires the measurement of time. <BR/><BR/>Although the time we spend on a project does not dictate the value we create, it does dictate how profitable the firm can be. <BR/>There is a reason that the Big 4 (very scalable, profitable and successful businesses) still use timesheets even when using value pricing. <BR/><BR/>As the firm grows my personal involvement and knowledge of project profitability becomes further removed. Without timesheets how do you determine:<BR/><BR/>Which jobs are least profitable and need to be re-priced or eliminated?<BR/><BR/>Which resources are the most efficient and therefore should received bigger raises?<BR/><BR/>How many engagements (and therefore how much revenue) an efficiently functioning delivery team can service at full capacity?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22277549.post-41771058345291889692007-06-30T07:12:00.000-04:002007-06-30T07:12:00.000-04:00Do you use timesheets internally?I am having troub...Do you use timesheets internally?<BR/>I am having trouble letting go of timesheets for internal firm management and am not sure if I should even be trying to. <BR/><BR/>Externally we fixed-price our services, but if I really think about it we arrive at our pricing by asking ourselves 1) what is a client willing to pay and 2)will it be profitable enough for it to make sense for us to service it. It is that second part that requires the measurement of time. <BR/><BR/>Although the time we spend on a project does not dictate the value we create, it does dictate how profitable the firm can be. <BR/>There is a reason that the Big 4 (very scalable, profitable and successful businesses) still use timesheets even when using value pricing. <BR/><BR/>As the firm grows my personal involvement and knowledge of project profitability becomes further removed. Without timesheets how do you determine:<BR/><BR/>Which jobs are least profitable and need to be re-priced or eliminated?<BR/><BR/>Which resources are the most efficient and therefore should received bigger raises?<BR/><BR/>How many engagements (and therefore how much revenue) an efficiently functioning delivery team can service at full capacity?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22277549.post-85761980669416697102007-06-28T18:37:00.000-04:002007-06-28T18:37:00.000-04:00Dear Anonymous,If we decided to take the client to...Dear Anonymous,<BR/><BR/>If we decided to take the client to begin with, I would charge the client what it is WORTH to them. HOW'S THAT for A CONCEPT? Once again, a hypo that includes no facts about VALUE. . . so when when you preface your unrealistic hypo with "just to make the question real" and then just include a bunch of crap about how much time it takes, it just drives home how much you are missing the point. first, at client intake you know NOTHING about time and have the opportunity to learn EVERYTHING about value! Even in your limited world of cost plus pricing, your hypo is simple to answer: If you knew it would take 10k hrs you would just multiply that by your rate and VOILA! You have a price. Attorneys who "Get it" charge what the deal is WORTH and get better results in half the time because we are rewarded for our creativity. It is simply amazing what can happen when you put the incentive in the right place!Christopher Marstonhttps://www.blogger.com/profile/11091974667607891404noreply@blogger.comtag:blogger.com,1999:blog-22277549.post-6797131255210211332007-06-28T17:49:00.000-04:002007-06-28T17:49:00.000-04:00Dear anonymous,Geez! If I had a nickle for every ...Dear anonymous,<BR/>Geez! If I had a nickle for every time I've seen the "What would you do if...?" or "How do you know if you are making money?" questions I'd have retired a millionaire!<BR/><BR/>I have been without timesheets for 11 years and last year I was so profitable I bought my own office building which I rent the downstairs to (gasp!) hourly billing lawyers!!!<BR/><BR/>Your question shows that you have completely missed Chris' points. See Point 1 sub 2, You have made an error in client selection!<BR/><BR/>What Chris is talking about takes courage, that translates to risk taking not risk avoiding. I survived the trial by fire of being Ron Baker's partner while he and I took our practice out of the "make a job for myself" world of tracking hours and billing for them no matter what we were accomplishing, to a fixed price based on value model. I suggest that you read ANY of Ron's books but first MAN UP and have the courage to name a price that matches what the hell the client wants. If it is a 10k hour hell hole frivilous trial then ask for a TON of $!!!<BR/><BR/>Chris, keep spanking 'em!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22277549.post-58522774121656697462007-06-25T22:40:00.000-04:002007-06-25T22:40:00.000-04:00Every time I read one of your posts I am want to a...Every time I read one of your posts I am want to ask, What do you charge a client to defend a frivolous case that will take 10,000 hours to defend?<BR/><BR/>just to make the question real, assume that the case pends in a judicial hell hole, where it must be defended, like Madison County, Illinois and where, regardless of the merits, the trial judge will not dismiss the case and the only solution is a trialAnonymousnoreply@blogger.com