Concentrating Upon 'Price' (At The Expense of Downplaying 'Value')

When I entered the Solicitors profession - It was as a 'junior bag carrier' to an experienced, expert and (by many) trusted business counsel to a significant men of business.

Over the years, in some small way I have evolved into the latter (with certain clients), but far too often I come upon younger men who buy all the goods for their business via Alibaba, and think that you deal with professional advisers in the same way.    

I am going to draw you analogy with my recent engagement of a plumber.

The need for a plumber came about because I had a slow draining sink (to my belief and annoyance – due to my own foolhardiness in repeatedly emptying coffee grounds into that sink).

I was faced with spending a considerable proportion of my forthcoming weekend dealing with problem myself - removing a u-bend & cleaning it out, then possibly rodding a pipe in a wall (and hoping that cleared any blockage further into the drainage system) and that my attempt(s) to re-assemble everything went smoothly and easily = I just couldn’t face it.

Instead I engaged ‘Reg’ - a plumber with whom I have developed a mutually beneficial client / business relationship over twenty odd years of needing a good plumber in West London (+ Not easy!).

Reg knows that I will pay him a fair sum for his work, and I know that Ron will turn up on time and 'sort' my plumbing problems.

I’m sure I could have spent a considerable period of time online comparing plumbers I’d never met before (and / or would be unlikely to ever see again) over what their minimum and ongoing charge out rate was etc.

Critically, I could have had them competitively quote for the relatively extensive work - which I as an inexpert / laymen envisaged might be necessary (See above).

I’m sure many of those I might have wished to engage by that process - would have carried out the relatively extensive work that I outlined I believed was needed, presenting me with a apparently competitive (but relatively extensive) bill.      

What actually was arranged was that Reg said "Let me come & have a look at it, and I’ll ‘sort it’ on a ‘what the job deserves’ basis".  I agreed.

On arrival, Ron looked at the problem, went back to his van and produced a wood & leather plunger (which he apparently was gifted by his apprentice master in the early 1970s – although it looked Victorian = "You can't get these now" etc.); and with a ‘special trick’ (which he imparted to me) he cleared the blockage completely in under a minute.

GBP £20 ‘cash payment’ later – we both parted as content men (until the next time I need him).

The point is that I simply cannot scope or time-budget much of the necessary work which people approach me with without either sight of relevant documentation and / or a sensible initial conversation with the individual who wants assistance – which I generally offer on a no-obligation basis.

There is a danger that unless you do this - you are encouraging a person in need of assistance to focus solely upon knowing ‘price’ and downplaying (to the point of ignoring) ‘value’.

For example, I've recently been approached by a prospective client who believed he needed two transaction documents, and wanted a quote for their production.  It was rapidly clear to me that only one material document was required, for reasons that I explained in detail.  It took the prospective client rather more time than I thought it would - to realise that those others who had quoted for what the prospective client erroneously believed he needed - were clearly displaying their lack of experience & expertise!    

Too often, when asked to 'quote'  for work – based upon what I then currently know – I am being asked to ‘quote for creating a piece of string’ – when I haven’t even had a chance to consider / concur that the client needs a piece of string / let alone how long it needs to be / and (accordingly) what it might cost!
 
My offer to prospective clients is clear – But to set it out - They should ideally provide me with some documentation and I will review the same upon a no-obligation basis (and the fact that many prospective client seem disinclined and / or unable to do this – is often a worrying sign in terms of working efficiently / keeping fees economic).

Additinally and / or alternatively, I habitually offer an initial no-obligation discussion with a prospective client as to the background and current circumstances – the combination of these two actions (documentation review & consultation) allowing me to scope and time budget proposed fees.

If the prospective client is happy with my time budget proposed fees then we might develop a business / client relationship as mutually beneficial as mine & Reg’s. If not – they have nothing to lose, but we almost certainly are both the losers in the long run.  

I’ve said it before – but it’s worth repeating – if introducers help me to earn a fee, then there is business to go round –v- If introducers seek as their raison d’etre to drive down such fees I can earn = You cut your own throat!

Let me know if you wish to discuss any of the above aspects / issues

With best regards

DanielRobertJohnson (Skype)

www.linkedin.com/in/danrjohnson

www.EquitableLaw.com

+44 (0) 7788 537 187 : U.K. Cellular Tel.

+44 (0) 333 390 3525 : London Based / Global Roaming Voicemail

N.B. For the record – My plumber (Reg)’s house is worth about three times (x 3) as much as mine (a Solicitor)  = Makes you think, doesn’t it!

City Firms’ Trainee Retention Rates Falling - Law Society Gazette - February 2017

https://www.lawgazette.co.uk/law/city-firms-trainee-retention-rates-falling/5059944.article

On the basis  that the training costs for a Solicitor now run into sums of tens (if not hundred plus) thousands of British Pounds (GBP £xx+,000s), any retention rate number materially below 100% show firms suffering wasted expenditure, at least in part caused by the relevant firms predictions of near future economic activity being less than that they forecast several years before.

When the second derivative (change of retention rate) is falling (as these figures appear to show), that may well be a worrying sign in terms of forecasting a technical recession for the economy.  

English Trainee Solicitors may have to comfort themselves that at least they are not joining the Law Society of Scotland . . .