[Video] How to Price Your Legal Service? Have Your “Product Manager” Crunch the Data…

How do you set the price for the legal services you are about to provide a client?

If you’re Fenwick & West, you ask your product manager to develop a price range based on the historical cost of similar deals, says Kate Fritz, the firm’s managing partner, in this interview with Bloomberg Law’s Lee Pacchia. Some key takeaways from the interview:

  • Fenwick & West’s new product manager position arose because the firm “wanted to take a page off of the way our clients think about their customers and how their customers interact with the products they’re providing.”
  • The product manager takes client feedback and marries it with internal financial data “to get the products and the services that we’re providing to clients in better synch.”
  • Product managers look at the components that go into a transaction and estimate what the prices have been for those different kinds of components over time so that the firm “can give the client more information about what those different components cost, and then the client can make … choices about [the work] it wants the law firm to do.”
  • “When I go to the store to purchase something, I have choices that are in front of me, and I can decide to pay more or less… It’s quite clear what I’m getting. That’s all that this process provides, so that clients can have choices.”
  • “The more information you can give a client  … so that they understand what the cost represents, and that they feel the cost is in synch with their expectations and what they are receiving, the better the relationship is and the better the legal services that we’ll provide.”

Watch. And learn…

[The video: How Facebook’s Lawyers Price Their Services – Bloomberg Law]