There are two clear ways a lawyer can make more money, it is either you charge more money or increase the hours you work. Now you may be debating whether you should increase your rate or not, and if so, how can you raise rate without losing your clients. Here are some steps to take to handle this concern.
You must have specific reasons to validate why your law firm has to increase rate, communicate these reasons to your clients. For instance, your firm decided not to raise prices when a recession hits out of respect to their finances, but now after careful consideration, you have to raise your rate. No matter how small the reason may be, you should share financial concessions with your clients because that builds goodwill.
How much should a lawyer charge clients? This is not necessarily a simple question to answer. In fact, there are a few factors that can influence what a lawyer should charge for legal services. However, smaller increases are usually better. Remember your clients want your services because of your experience, reputation, and skills.
As you already know that time is everything, this applies to a firm that wants to increase their charges. The worst you can do is not informing your clients about the changes leaving them to find out on their invoice. If possible, try to roll out the increased rate in phases to a different group of clients. You can try to test the water by rolling out your new rates to new clients, and you can move up the chain until you finally get to your primary clients.
It can be challenging to raise your rates, and it can be harder if your clients refuse to pay for the new fee, but most of the time it is well worth it to stick your ground. The most important thing is to believe in your worth because if you don’t, nobody else will.