Flat fees is an art
The Ambrose law firm in Oregon is using the flat fee billing modality to significantly improve profits. Quoting Ed Poll, the writer in this article said: "According to Poll, ‘determining what a fee should be is an art, not a science.’ It requires the firm to consider the costs of running the firm, to have a tap on the marketplace and to understand the value to the client, he said…"
Profits can be stated in a mathematical formula: P = R – E. But, the "E" has a limitation. You can reduce expenses only so much before you start cutting out the "meat" of the law firm. "R," on the other hand, has no limit. You can increase revenue without limitation. Focused practice development efforts will attract new work; and once you get the work, you can develop the appropriate infrastructure to handle the increases.
Congratulations to Dave Ambrose and his crew of outstanding folks.Tags: Cash Flow - Finances
Categorized in: Cash Flow - Finances