Articles

April Fool

It’s that time of year again, April 1st.

The greatest April Fools’ Day joke was the Swiss spaghetti harvest. In 1957, the BBC said Swiss farmers ere harvesting a huge spaghetti crop due to the near-elimination of the spaghetti weevil. Coverage showed peasants picking spaghetti from trees.

I believed this hoax. As a kid, what did I know?  And, if it were on television, it had to be true!  I’ve learned a lot since then.  But, I believed this story for years ….

What hoax’s are floating around in your law office on this day? How long have they been floating around? Do you want to perpetuate them, or clean them up and enhance the morale of your colleagues?  You do have the choice on how your firm operates, even in a depressed economy.


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Fee or Free

 

A client of mine asked me whether he should charge a prospective client a fee for their initial consultation, the meeting before being engaged.

There are three approaches to this issue, long debated amongst lawyers:

1.                   Free initial consultation

2.                   Paid initial consultation

3.                   Paid initial consultation with the payment applied to the total bill if they engage you.

There is no one right answer or magic bullet in response to this question. Obviously, everyone wants to get something for nothing. But, we then also run into the bromide that "you get what you paid for."  In this case, nothing.

Whether you can charge for the initial consultation is normally a question of the client’s trust in you, their confidence in you … and how long it takes to generate those feelings in the client toward you …

I don’t think “free” connotes expertise … and that’s what prospective clients are looking for. In deference to the current economy, and the need attract clients, you might consider alternative #3 …  charge them an initial consultation fee, and apply that amount toward the total fee in the event they should retain you.

This is never an easy choice. But, we must remember that people do believe they get what they pay for … and anything free is usually viewed with suspicion either as to motive or expertise. A discount in an on-going relationship, however, is viewed differently and not to be confused with the issue at hand.

 


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Do you know when you’ve succeeded?

The other day, I was cycling up Red Rock Canyon in Las Vegas, NV.

I went from about 2500 feet to 4713 feet. En route, the road was rolling hills. So, sometimes I went down, but then there was an ascent next … all the way to the top, about 7.75 miles from the start.

Before I reached the top, however, I was complaining to myself about how hard this ride was … and whether I could complete the ride as I had intended. When I reached the final plateau, not having ever ridden there before, I was not sure that was the top. I thought there were more rolling hills ahead of me. I asked a couple of cyclists who were descending. When they told me this was the top, I was elated I had made it to the top, relieved that the pain of the trek was over and quite surprised at how hard I had fought with myself.

How many of our clients don’t realize or appreciate the success we bring to the table for them? What have you done to educate them about the process of your representation? I was fighting myself because I had never been in Red Rock Canyon before. Most of your clients have never been involved in the judicial process before. And even sophisticated clients with previous involvement don’t truly appreciate what lies ahead. What have you done to show them a preview of what’s to come? What have you done to make their journey easier? What have you done to shine a flashlight on the road in front of them?

When you shine the flashlight, and they still agree to move forward, the likelihood is that they will pay you your full fee without question and promptly in accordance with your engagement agreement.

Use the flashlight!


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Can you afford to retire?

While the economic crisis is being felt by nearly every segment of the working population, one group of workers is faced with particularly tough decisions regarding their futures. Law firms need to be prepared to assist them in making a transition during challenging times. Six-in-ten workers (60 percent) over the age of 60 say they are putting off their retirement due to the impact of the U.S. financial crisis on their long-term savings, according to a survey by CareerBuilder.

I agree with Ron Friedmann that lawyers, even partners in larger firms, are feeling the economic strains of today’s world and therefore delaying anticipated retirement. But one group of lawyers may not:  Sole and Small Firm lawyers. These folks have something of value that they can sell .. converting their equity into cash. Most lawyers never thought their law practice was a saleable asset. So, while their investments may have tanked, they can look to their law practice for ready cash.


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