One step closer to value billing

Rees Morrison suggests a very interesting concept … sort of a blend of hourly rate billing and value billing … Perhaps we need this intermediate step to get to true value billing.

"What would be the result if a law firm asked its lawyers to charge their time not at a single hourly rate (say, $400 per hour) but at three levels. At the lowest level, where the service was simple or inefficient or travel, perhaps the rate would be 20 percent less ($320 an hour). The typical rate, for work in the comfortable sweet spot of the lawyer, would be at the standard rate. For work over the weekend, rushed, or demanding special teamwork research or creativity, the rate would be 20 percent above ($480)."

Categorized in: Cash Flow - Finances