Competing on price as a legal marketing strategy is one way to end up at the bottom of the law firm food chain. By competing on price you may be conveying a a number of messages that may hurt you in the end, including:
- I’m not as good as others, so I have to charge less,
- My experience is less than competitors,
- For less dollars, you get less services
In his current newsletter, Trey Ryder gives tips on how to charge more than the competition and attract better clients. I may not agree with every point he makes or suggestion in discussing the competition, but the overall theme is dead right.
Rather than low ball your fees (or be defensive about a higher fee), Trey advises you to explain why your fees are higher in terms of:
- Results (not guaranteeing specific results, of course, but pointing out what the outcome has been for other clients in similar situations),
- Qualifications (explain your experience in the area of law, especially in your niche area),
- Services (explain what and how you have served clients in the past, and what they can expect in terms of superior, responsive service),
- Testimonials (share letters from satisfied clients, but make sure you’re in compliance with your ethics rules), and
- Other (anything that stands out as setting you or your firm apart from competitors, including location, policies relating to returning phone calls and emails, etc.).
Besides, you may not be very happy working for clients who are only interested in the lowest priced provider. They may just find other things to complain about.