Law is one of the most rewarding careers out there. Most law school graduates hope to land a job at a big law firm after graduating because of the pay – Bloomberg research shows that graduate lawyers can earn as much as $190,000 during their first year in these firms.
Unfortunately, not every law school graduate can land such a lucrative job. Most will get hired by smaller firms and public offices. You may decide to open a law firm after gaining experience.
The main benefit of going solo is that you increase your earning potential significantly. Sadly, most lawyers get the pricing wrong and charge too little because they want to get clients.
Why you should charge the client more
When a client comes to you with a legal issue, you use your knowledge to guide them. A good lawyer does their homework. That means you are likely to spend some time researching legal remedies to the issues. The effort you use will be the same for both a high-paying and a low-paying client.
Therefore, you are better off charging both a high rate as compensation for the work you do.
Another reason you should charge clients more is the value of the profession. Getting into law school is difficult because the career is demanding. If you’re lucky to get in, you have to pay high tuition fees because the department needs money to run efficiently.
Therefore, it’s only fair that you get adequate compensation for the sacrifices you made to get that degree.
As odd as it may sound, clients love paying high legal fees. The perception is that a lawyer who charges more gives better services than one who asks for less. Thus, high rates can help you build credibility.
How to increase your rates
If you already have clients, ask them how much they want to pay. That way, you can learn the value people place on your services.
Tell your clients you are going to increase your rates so that they are mentally prepared. As you do so, keep in mind that people come to you because they appreciate your services. They rarely care about pricing.
However, don’t go too high with the pricing because you can chase away clients. Make the change gradual – you can begin with a 6% increase in rates.
Whether you’re a graduate or seasoned lawyer, make sure you charge rates similar to the value you give to a client.