Implementing Fixed Fees & Value Pricing

Transitioning from the billable hour.

The billable hour penalises efficiency. If you invest $10,000 in software that halves your drafting time, billing by the hour means you just halved your revenue. Value pricing aligns the firm's incentives with the client's desire for certainty.

Pricing ModelRisk BearerEfficiency Incentive
HourlyClientNone (Penalized)
FixedFirmHigh
CappedFirmMedium

Fixed Fee Margin Estimator

Implementation Pitfalls

  • Failing to document existing processes before applying technology. Software amplifies chaos.
  • Underestimating the cultural resistance from senior partners who measure value in hours billed.
  • Ignoring data egress fees and technical limitations in vendor API contracts.

Frequently Asked Questions

What if the matter blows out?

You must rigorously scope the engagement letter. Define what is out-of-scope clearly.

Does this work for litigation?

Phased fixed-pricing works for litigation (e.g., $X up to discovery, $Y for trial prep).

Explore Core Pathways