Before you get upset, yes, we know what you’re possibly thinking: “How could I possibly raise my rates now with inflation as it is! That’s just contributing to the problem!”
We respectfully disagree.
That’s because the truth of the matter is most firms aren’t actually charging what they’re worth to begin with. Don’t let inflation be just another excuse for preventing your firm from seeing growth. Here are 3 reasons to give your rates an increase right now.
1. You’ll likely create more time for yourself
In our upcoming Legal Marketing Trends Report, we clearly show that lawyers don’t have enough time to properly do the things they need to do in order to run their firm. Most lawyers also worry about making enough revenue to stay in business. Raising your rates can solve both problems.
Again, we can hear you screaming at your screen right now: “BUT WHAT IF I LOSE ALL MY CLIENTS?!?”
The truth is that you won’t lose all of your clients unless you do something crazy like increase your rates by 500%. Most of you, when it comes time to increase your rates, won’t even double them even though you likely could.
Yes — a rate increase will likely weed out some people who just want to find the cheapest lawyer in town, BUT THAT’S OKAY! The loss of actual clients likely won’t result in lower revenue since your fee increase covers it. The most likely worst-case scenario is that, at least when it comes to revenue, you break even.
2. You’ll create more opportunities for your firm
So let’s continue down that path and let’s say you break even on your rate increase. Guess what you have more of? TIME. That’s because you’re making the same amount of money, but doing so with a lighter caseload. What can you do with all that time?
If you choose to invest it back into your firm, you can spend time coming up with new service offerings within your niche. You can finally document all of your systems and processes. The opportunities are endless.
3. It will justify your marketing message (and vice versa)
Here’s the thing about raising your rates: Regardless of the current state of inflation, if you have a marketing strategy that positions you as an expert, people won’t care as much about how much it costs to work with you because you’ll have convinced them that you’re the best option!
We know it can be scary, and yes, you’ll likely lose a couple of potential clients because of it. Truthfully, we’ve lost clients when we’ve raised rates, but in the end, we’ve continued to increase our revenue and profits, and we know the same can happen for your firm as well.
Spotlight Branding
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