I believe that most lawyers in the USA use what accountants term, "Prestige Pricing" strategy.
Many attorneys desire a demand-oriented approach because they want a high selling price or premium status in the market. This is fine in itself, if you want to restrict access to legal representation to the quality- or status-conscious consumer.
However, in this economy this pricing strategy will hurt the lawyer/law firm. In today's market, more and more Pro Se litigant's are proliferating the market. And if a lawyer or a law firm wants to remain competitive it is crucial that you set your price just below the competition not to restrict access to those who need it most. In the long-run Prestige Pricing will hurt your law firm rather than create profits.
Target Pricing is a better strategy for those who desire a market-oriented approach, and want to set a desired target price before the service is offered. This strategy is focused on cost reduction through out the life of the service.
To be simplistic, a lawyer or law firm can focus on a Cost-Plus strategy. This strategy is best if you desire a cost-oriented approach, the lawyer can estimate service costs with reasonable accuracy, and the lawyer has little concern for service life cycle, demand, competition, or image. It is a simple calculation.
If I were a lawyer, I would use either target pricing or cost-plus strategies. In this way, most consumers whether rich or poor would be able to afford legal representation.
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