It was only yesterday that I was blogging on how law firms should consider lowering billing rates as part of their marketing mix. And this morning I see that Reed Smith has cut billing rates by 20 percent. Yes, they are cutting associate salaries, but they are also cutting the billable hour requirements
Don’t Forget: One of the 4 Ps of Marketing is Price
For those not in the know, the “Marketing Mix” is also known as the 4 Ps of Marketing, which are: Product, Price, Place (distribution) and Promotion. There is chatter about a 5th P – Participation, but that’s not what this post is about.
We’re going to talk a little bit about Price today.
Does Quality = Cost???
Now that “Layoff Friday” has given rise to “drop in profit Tuesdays” the conversation continues to migrate over to hourly billing rates. I wrote here about how Linklaters’ chief, David Cheyne, rejected the call to cut legal fees.
Legal OnRamp’s Paul Lippe has a great piece in today’s The AmLaw Daily,
Don’t say “no” to reducing your rates too fast
I’m flipping through the e-alerts I get and today alone law firm layoffs are hitting DLA Piper and Dechert.
According to the American Lawyer, Revenue is flat and profits are down at Skadden, S&C, Davis Polk, and Dewey.
And the news isn’t better across the Pond. Redundancy talks are on (again) at Clifford Chance
The Bubble Has Burst
Living on the Westside of Los Angeles I watched, jaw hanging open, as housing prices kept rising and rising. A 900 s/f tear-down in my neighborhood went from $360,000 to $900,000 in just a few short years. I was one of those doubters who kept saying, “Why would I buy now? We’re in a housing
When It’s Broke, Fix It
Seth Godin’s recent post Breakage is a great commentary on people’s tolerance for steadily increasing rates year after year.
For the last couple of years ACC members have been at the point Seth was when he’d “get the bill, sigh about the fee, consider the hassle of switching, pay the bill and move on.” In-House
Can’t We All Just Get Along??
Interesting blog posting by Jason Mendelson, “Why Start-Up Lawyers Frustrate Me.” It is a must read on your next coffee-break.
I found it from the law.com article, VC Slams Attorneys on Salaries and Overlawyering which includes direct quotes from Jason and others in the Valley.
What really stuck out for me was this:
He said
Discount on the 72nd Floor
For those of us who have ever put together a billing chart for a pitch letter or RFP response, were you really surprised by the Fees and Pricing Benchmark Report: Law Firms & Legal Services Industry 2008 report released by raintoday.com?
The Greatest American Lawyer (gotta love the name … perfect for a new