Friday, February 27, 2009

Hour and value billing: Excess dose a sure way to kill your business!

There is an interesting write-up on the issue of hour billing exercise done by lawyers. The writer has used an excellent analogy to draw home the point that charging by hour is a sure way of driving your clients away from even the periphery of your office.

One needs to understand the fact that payment of services should be based on the value addition done by the service provider rather than the number of hours the person has spent in courtship with the project. Not to miss the point that value addition is to make customer delighted by the quality legal work and not stump him/her by the record of every second spent in making fancy labels under which he could be charged.

The client is the king. And I think that the king can be impressed when you can act as an advisor and tell him ways by which he can get the best out of every deal he strikes. So don-up your thinking caps to provide solutions to challenges in their business and let that separate you from other players in the field.