Do you post your fees on your web site or in your ads? Some attorneys do; most don’t, but should they?
Of course for many legal services, it’s nearly impossible to quote an accurate fee without more information. So we say, “it depends,” and encourage the prospect to call. In truth, most people don’t call, because they are intimidated or don’t want to listen to a sales pitch or be told they have to come into the office.
But if you charge a flat fee for a given service–incorporation, bankruptcy, real estate closing, living trust–should you list those fees up front? If you charge by the hour, should you post your hourly rates for the world to see?
Let’s think this through together. . .
PRO: Posting fees lets prospective clients see if you are “in the ballpark” of what they can afford and are willing to pay. Theoretically, you’ll get more clients hiring you who might not take the time or trouble to call to get an actual quote.
CON: Quoting fees invites price shopping and creates pressure to compete on price, which is a slippery slope for any attorney because there will always be someone “cheaper”. And, do you really want clients who are merely looking for the lowest price?
You could say, “fees starting at. . .,” or, “fees range from X to Y, depending on the complexity of your matter. . .”. This gives the prospect an idea of what to expect and may be an acceptable compromise for your practice.
Indicating the fees you charge with any degree of specificity may not be something you want to do, or can do, but that doesn’t mean you should avoid the subject completely.
If you charge flat fees, explain why the client is better off knowing in advance how much they will pay, in contrast to the open-ended nature of hourly fees. If you charge by the hour, explain why the hourly rate isn’t the only factor, that while they can probably find an attorney who charges less per hour, that attorney’s comparative lack of experience may wind up costing the client more. Explain how contingency fees work to the advantage of the client. Explain costs and retainers and trust accounts.
In addition, you can help prospective clients to appreciate the value of what you do by explaining how fees are determined, the information you need to know (and why), and the options and possible outcomes their case may entail.
When you are open with prospective clients about the subject of fees, they may be more inclined to trust you, at least enough to make that call to find out “the bottom line”.
I’d like to know what you think and what you do in your practice. Do you post your fees on your web site? Do you explain how your fees are determined?
Hi David,
I have one competitior who does post fees on his web site and reports that it si soemwhat useful. From my perspective, I htink that it encourages haggling and prospects who try to play one attorney off against each other on the issue of price.
While I do have a fee limitation clause in my hourly fee agreemetns that canno tbe exceeded without the express authorization of the client, I have found that comparing fees is only useful if it is for the same bundle of services. Some who come to me stating that another attorney charges $1,000 or $2,000 less than me do not realize that my military disability fee agreement covers all aspects of appeal on four diferent levels of review. Thus, it only makes sense to compare if the other attorney’s agreement covers the same services.
Yep, they need to see the whole picture. Thanks, Jack.
David, I do not post on my website but am always happy to talk or email with clients and prospective clients about fees, once they have related their issues and we’ve talked about them a bit. Often a client will commit to representation at that point and then we do discuss fees as a next-to-last matter, before what do we do now? I do post fees in responses to prospective client inquiries on the Legal Match program, where the response forms are set up for flat, hourly, and contingent fees, each in a range if you like; I have various fixed responses that I can modify, as for patent applications, movie downloading issues, and such. Most clients are happy to ask about fees, and as a senior solo (for 3 years now, after big-firm practices) attorney I’m pretty flexible in fees, payments, and terms, depending on lots of factors. So far, so good!
David,
Just last week we added the page with fees. http://www.warnkenlaw.com/practice-areas/criminal/lawyer-fees/. We were hesitant. However, ultimately, we send out a one page sheet on criminal fees for anyone who asks. Therefore, why not put it online.
Ultimately, we don’t haggle on price. We are some of the most expensive in town, because we are some of the best. We are fortunate to be in that position. We posted so we didn’t have to tell as many people that we don’t haggle.
Thanks for the info you put out. -Byron
Ultimately, I generally try to say ultimately once per comment. Now I have failed twice in a row.
Bankruptcy clients are very focused on fees. I have posted my fees for the past 10 years and it works well. Clients tell me they appreciate certainty. But I don’t handle complex cases, I refer them out to colleagues. If I was in to doing more litigation, posting fees would never work.
I don’t post fees. While I do handle bankruptcy cases and most cases fall within a certain range of fees, fees can be different based on complexity of the case. Also, my fees include everything needed for a typical case. I don’t compete on price. Those clients typically demand so much more for so much less.