Cash flow is always a prime consideration for law firms, as they are essentially a cash-driven business with little in the way of reserve capital. With the impact of the ongoing pandemic, this year has made that focus even more essential as many clients have found themselves strapped for cash.
A law firm’s cash flow really begins and ends with how its services are priced. Poor pricing practices can set a firm off on the wrong foot for a legal matter, or turn an otherwise profitable matter into a loss as it moves through billing and collections. In today’s market, clients exert a lot of control over how matters are priced, and it is incumbent on law firms to understand what their clients want and how to operate within those expectations while maintaining or improving their firm’s profitability.
In a new video taken at the recent 2020 Law Firm Financial Performance Forum, Tim Batdorf, CEO of NextGenLPM, moderated a panel where he posed the question, “What are clients wanting in terms of pricing, and how is your firm responding?”
Panelists Michelle Weber, COO at Bilzin Sumberg LLP; Keith Maziarek, Director of Pricing and Legal Project Management at Katten Muchin Roseman LLP; Shonette Gaston, COO at Robins Kaplan LLP; and Fred Esposito, COO at Rivkin Radler LLP, offered their insights as to what their firms have tried and how successful those efforts have been.