An attorney asked for advice in dealing with a wealthy client who tries to negotiate every bill. “I really want to fire him but how do I make him understand?”

If you bill by the hour, it is not uncommon for clients to have doubts about your bill. They question whether the work was necessary and why it took so long, and even though they agreed to your hourly rate, they can’t understand why it is so high. That’s why clients prefer flat rate billing. They know in advance how much something is going to cost and there are no surprises.

Whatever fee model you use, you must help clients to see the value of what you do for them. This is primarily done in advance, before they sign your retainer agreement.

Educate them about what you do and how you do it. Explain what they get for their money and why it is necessary. Talk to them about the options and contingencies. Show them other cases you have handled like theirs, explain the time line, and tell them how much those clients paid.

Of course you must also show them what those clients got for their money. What outcomes? What benefits? How were they better off as a result of hiring you?

If you do this right, clients will see the value of what you are about to do for them and they will rarely question your bill.

What about the wealthy client who tries to negotiate every bill? Here’s my advice:

Lawyers should never negotiate fees. It sounds like you have done this with him in the past and unfortunately, this puts you in a weaker position. You have three choices.

1. You could change your billing model. Quote him a flat rate for each matter, a monthly rate that covers everything, or a hybrid that covers much of what you do flat rate but allows for additional charges in the event of certain contingencies.
2. You could sit him down and show him the value of what you do, as described above. Do this one time. If he is convinced that you’re being fair with him, he must agree not to question you in the future. Kiss and make up.
3. You could fire him. Be honest. Tell him it’s obvious that he doesn’t see the value of what you’re doing for him and that you don’t negotiate fees (or will not do so in the future if you have previously). Tell him you can recommend an attorney who charges less than you do.

If a client doesn’t see the value of what you do, it’s your fault, not his. Yes, there are clients who try to negotiate everything (it’s in their DNA), but you must not give in to this. Do what you have to do to get them to see that you are worth every penny you ask (and then some) and if they don’t get it, move on.

For more on how to convey the value of what you do, see The Attorney Marketing Formula.