find the latest legal job
Corporate/Commercial Lawyers (2-5 years PAE)
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Specialist commercial law firm · Long-term career progression
View details
Graduate Lawyer / Up to 1.5 yr PAE Lawyer
Category: Personal Injury Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Mentoring Opportunity in Regional QLD · Personal Injury Law
View details
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Full time · Join a leading Adelaide commercial law firm
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Sydney NSW
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
In-house Legal Counsel & Commercial Lawyers
Category: Corporate and Commercial Law | Location: All Melbourne VIC
· Providing lawyers with flexibility and control over when they work, how they work and who they work for.
View details
Partners told to stay out of pricing

Partners told to stay out of pricing

Partners should not get involved in firm pricing decisions, a business consultant has claimed.

Many partners want to set their own pricing but few are good at it, said Colin Jasper (pictured), director of Jasper Consulting, who will facilitate a panel discussion on pricing trends at the Asia-Pacific Professional Services Marketing Association (APSMA) conference in Melbourne next week.

“It’s rare that every partner is good at pricing; in fact those who are good at it tend to be in the minority,” he told Lawyers Weekly.

For this reason, and given the impact of pricing on profitability, Jasper believes partners should not influence the development of costing models.

“It’s the sort of thing that wouldn’t be allowed in any other organisation,” he pointed out.

The panel discussion next Tuesday  (18 September) will focus on how pricing is evolving from both a firm and client perspective, with the pricing group manager from Allens and the senior sourcing manager from Bendigo and Adelaide Bank also invited to speak.

Jasper claimed that the most significant trend in pricing in recent years has been greater client sophistication in the purchase of legal services, on which Tom Russell from Bendigo and Adelaide Bank will provide some insight.

Cost pressures

Sophisticated clients are becoming more demanding, according to Jasper. "They are increasingly decreeing the price they’re willing to pay then telling firms to take it or leave it.

"They also want firms to justify their price point and there is increasing pressure on firms to reduce prices or look at alternative fee arrangements."

Firms must acknowledge the shift in client expectations and respond accordingly, he continued. Otherwise, they will continue to lag behind leading corporates in the area of pricing innovation.

“There’s a lot that firms need to learn in this area,” he added.

While Jasper could not reveal the names of the firms he is working with to improve their pricing models, he did reveal that his clients are a combination of top-tier and mid-tier Australian firms, US and UK firms, and organisations from a range of other disciplines, including accountancy.

Of the firms that he believes are “doing well”, most are supporting partners to make better pricing decisions and educating them on how to discuss costs with clients more effectively.

“Historically, these aren’t skills a partner needed, but now there are increasing pressures put on them by clients and it’s hard to succeed financially without these pricing skills,” he said.

The 2012 APSMA National Conference heads to Melbourne on the 17 to 18 September. The event features Jane Caro from ABC’s The Gruen Transfer and economist Craig James from Commonwealth Securities. APSMA has also invited law firm partners and in-house counsel to speak on client relationships.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Partners told to stay out of pricing
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Jackie Rhodes
Dec 12 2017
Report sheds light on LGBTQI inclusion in law firms
A recent report has revealed the varying perceptions on LGBTQI diversity and inclusion in the Austra...
Women in business
Dec 12 2017
Annabel Crabb headlines Women in Business Forum
Political journalist Annabel Crabb has appeared at the Coleman Greig Lawyers Women in Business Forum...
Dec 11 2017
Warm welcome for new district court judges
Three practitioners who were appointed as district court judges in WA have been congratulated by ...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...