This is going to ruffle a few feathers, but think about it. You quote a fee, everyone signs up. You raise your fees, everyone stays with you. You keep raising fees and everyone still sticks with you. 

What’s wrong with this picture?

It’s good, isn’t? On a small scale, maybe, but over time, it probably means you are charging a lot less than you could. Less than the market will bear. 

Which is why you should regularly increase your fees. 

You’ll lose some clients, but more than make up the lost revenue, and then some from the ones who stay. 

That’s the idea, at least. 

One consultant who recommends regular fee increases says that if 60-70% of prospective clients, or more, sign up when you quote your fee, you’re probably charging less than you could. Raise your rates and let the market tell you how much it will pay. And keep raising them until the market tells you “enough”. 

How much should you raise them? Well, the stock market averages 9% per year, so if you only increase your rates by that much, you’re only keeping up. You’re not growing. And then there’s inflation. 

But don’t let your minimums be your maximums. You might be able to increase your rates much higher than you think. How long since you last raised them? What percentage? How much resistance did you get? 

You might be able to bump your rates 25%, 50%, or even 100%.

Prospective clients don’t know how much you used to charge. Raise your rates. If 3 clients sign up, says the consultant, raise them again. 

What about existing clients? They do know how much you used to (currently) charge and might resist an increase more than prospective clients who don’t know what you used to charge.

Or they might not.

 In fact, they are arguably less resistant to higher fees because they know you’re worth more.

Prospective clients often talk to other lawyers and compare your rates and services to theirs before they make a hiring decision. Your existing clients probably aren’t doing that. If they’re happy with your work and the results you’re delivering, they are more likely to pay those higher rates.

So, make sure they’re happy with your work. 

At some point, you will meet resistance to fee increases. Some clients will pay them, some won’t. Or can’t. 

Selling legal services isn’t as simple as selling groceries, but supply and demand is always a factor. The market will tell you what they will and won’t pay. 

But only if you ask.

According to a number of studies, giving customers too many options makes it less likely they will buy anything. In one oft-cited experiment, grocery shoppers were given the choice of a dozen flavors of jam to choose during a promotion. They sold more jam overall, however, when they gave shoppers fewer choices.

Too many options tend to lower response, ostensibly because shoppers get overwhelmed and can’t decide which to choose. Too many choices, apparently, means too many chances to make a poor choice.

But if too many options lower response (and profits), can the same be said about giving customers too few options? 

Most lawyers give prospective clients only two choices—hire me or don’t. What would happen if they offered more options? 

If you handle estate planning, for example, you might offer a basic estate planning package and a more comprehensive package. Does this make it more likely clients will hire you? Will you generate more revenue if you give clients two choices instead of one?

When I sold my referral marketing course, I started by offering one option. You could buy the course or not. When I added a Deluxe version, I got more sales and more revenue. (60% bought the higher-priced Deluxe package).

Two options were much more lucrative than one. 

But selling courses and selling legal services aren’t the same thing. The only way to know what is best for you is to test different offers and see what happens. 

Try one option, e.g., buy or don’t, vs. two options, e.g., Basic or Comprehensive, and three options, e.g., Basic, Comprehensive, and something in between. 

Crunch the numbers. 

But keep in mind that getting more new clients might not be as profitable as getting fewer new clients who pay a higher fee. And don’t forget the “back end”–the lifetime value of a client via repeat business and referrals. 

So, it’s complicated. But worth testing different options. Just not too many. 

I used to sell a course in two versions: “Basic” and “Deluxe”. The Deluxe version had more value at a higher price. Customers got more services and “stuff” and I earned more revenue. 

You should do something similar in your practice. 

Bundle or package your services in ways that are attractive to clients because they get more value and/or the convenience of getting everything they will need from you sooner rather than later, all at an attractive “price”. 

For example, if you have a typical fee package that goes for $5000, consider putting together a higher-priced package that sells for $6500. 

If you don’t offer flat fee billing, consider it, at least for some of your services. Clients like the certainty of paying a flat fee rather than paying by the hour, and you may find more clients signing up (at a higher flat fee) for that reason alone. 

There’s another reason for offering higher-priced packages, however. It often generates more sales of your lower-priced or “regular” package because of a phenomenon known as “price anchoring”. 

It’s about perceived value. 

Your $5000 package appears more “affordable” because the client compares it to the $6500 alternative. If you only offer the $5000 bundle, however, the client has the choice of paying that or paying nothing, e.g., telling you they’ll think about it. 

Even if nobody signs up for your “Deluxe” package, you will often earn more due to the increased sales of your lower-priced package. 

Reason enough to get to work on your Deluxe package. 

When you have a client or prospective client who wants to negotiate on fees, you know what to do. Firmly and politely tell them no. 

But tell them why. 

Explain that your fees are reasonable, you do good work and deliver great value, your clients are happy, and if you were to give one client a lower fee than everyone else, it would be unfair to your other clients, and to you. 

You might explain that yes, your fees are higher than other lawyers, because you have more experience, so you are worth it. And give them proof—verdicts, testimonials, endorsements, awards—and how this translates to better results for your clients.

You could offer a payment plan, or get set up to accept credit cards. Or ask if they have someone who might lend them the funds or co-sign for them on a bank loan. 

You could suggest that you do part of the work they need or want, at a lower fee, and they can get the rest later. Or you could talk to them about waiting on everything until they’re able to get started. 

Finally, if they just can’t do it, offer to refer them to a colleague you know who charges less.

If these don’t work for them, or for you, thank them for considering you and wish them well. 

This kind of honesty, directness, and posture will often cause the client to figure out a way to say yes. 

Many people have the money but do their best to “get a bargain”. Nothing wrong with that. Smile and tell them no deal. 

You may lose a client or two but you’ll be better offer overall. 

If more than the occasional prospect or client tells you no, however, don’t even think about lowering your fees across the board. You’re not expensive. You just need a different niche or group of clients who can afford what you’re worth.

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