“For most of us, the billable hour is the only thing we know, and so, even though we are sick of it, we don’t know what else to do. There is an alternative and it is called, ‘Value Pricing.'”
– From Dumping the Billable Hour-One Lawyer’s Experience, by Mark A. Chinn
That quote speaks volumes about where the profession is and where it’s headed. Most lawyers I know, both clients and friends, hate the billable hour. But they can’t let go of it. You know the old saying: Better the Devil you know than the Devil you don’t.
The idea of implementing value pricing in your practice can be a scary proposition. But like so many journeys in life – and, yes, implementing value pricing is a journey – just getting started can be the biggest challenge. If you’re ready to get started, there are some excellent resources out there. In my last post, I mentioned the books Winning Alternatives to the Billable Hour: Strategies That Work and Implementing Value Pricing: A Radical Business Model for Professional Firms. Both are great starting points for your journey. You should also visit The Verasage Institute. The Institute, founded by Ron Baker, the author of Implementing Value Pricing, is an excellent online resource and a community of thought leaders in the area of value pricing.
And if you’d like to learn from an attorney who has successfully implemented value pricing in his firm, you should check out Mark Chinn’s eBook, Dumping the Billable Hour – One Lawyer’s Experience. Mark is a Family Law attorney and founder of Chinn & Associates, PLLC, in Jackson, Mississippi. He’s also a Practicing Fellow at the Verasage Institute. Mark has successfully transitioned from an hourly-billing practice to a practice that utilizes only value pricing. In Dumping the Billable Hour, Mark shares his experience and provides tools you can use to begin implementing value pricing in your firm. Although Dumping the Billable Hour is written from a Family Law perspective, its lessons are relevant to anyone wanting to make the transition. Click here to read more about value pricing at Chinn & Associates.
Have you considered implementing value pricing in your firm?