Fees, Oh Fees, Where Art Thou?
So I got a phone call from a potential client today who wanted to know what I would charge for X, Y and Z, presuming that is indeed the work that her case would entail. I have no idea what her case would entail until I ask all the relevant questions and get all the relevant details. But this client is on the phone and she is waiting for a quote.
So I ask her to hold while I open my fee chart. Some lawyers may scoff at the idea of asking a client to wait while you pull out your fee chart, as though not having all of your fees memorized is something to scoff at. I think the opposite is true in the eyes of a potential client. The attorney appears more credible because he or she is not inventing a price out of his or her head. There is an actual list and it applies to everyone. This is what my firm charges for X and Y and Z. No games. We could debate this ad nauseum. Back to the story.
I quote my fee to the potential client and she thinks it is way too high. She asks if I could lower it, and remembering the sage advice that solo practitioners have imparted everywhere I looked (and read and listened to, etc), I said sorry, no, those are my fees. She informed me that she would call other lawyers to see what their fees were in comparison. I offered to send her some information in the mail for her to review, namely an intake form and cover letter, in case she chooses to retain me.
After we hang up, I panic. Were my fees, in fact, too high? As attorneys, we are not allowed to discuss legal fees because that could violate anti-trust laws. There is some discussion among attorneys here and there about such matters, but no pooling of such information is allowed, for fear of price-fixing allegations. I checked the websites of the few immigration attorneys who post their fees, but the nature of the work that the potential client requested from me prevented me from being able to decipher what those attorneys would charge in the same case. I called two immigration practitioners to get their take. One assured me that no, my fees were not too high and her fees were in fact higher. Another immigration lawyer told me my quote was too high and that as a new practitioner I should have charged less.
So I am left in the same position that I was in when I hung up the phone this afternoon. I pondered -- in this economy, maybe I should quote my fees but always allow for wiggle room, read the client's comfort level, and make an offer downward but with a floor below which I will not accept. Then when I am more experienced (which I hope also coincides with the economy improving) I can charge my full rate with no room for negotiation. Or maybe I was right today, and I should stand by my fees and only accept clients who can pay those fees. After all, I am willing to offer a payment plan.
So I caved, slightly. I sent the potential client an intake sheet and cover letter in which I explained that her answers to some of the questions in the intake sheet may change the quote of legal fees that I had given to her over the phone. This may not affect her choice of which attorney to hire or make her believe that my fees will suddenly appear in the range that she can afford, but I provided some wiggle room.
Two more caveats. First, I have found that when a new client retains me, the work involved in their case is always more than what I originally estimated (for a number of reasons). Second, we must value our work! It is no small matter to seek out and pay for attorney work-product. We are selling a professional service and our ability to spot important legal issues is extremely valuable. We are not negotiating the blue-light special at Kmart.
So that was my story about fees for the day. Happy soloing, until next time.
Labels: Reflections on Lawyering



2 Comments:
I passed 09 July and do immigration too. I had a similar incident, a DUI and I told him to I had to do some research then I seasoned attorney snatched him up!
I got a K3 right now and spouse is right here and out of status, I'm not sure whether I should wait for her to decide or close hard. I didnt go to law school to sell! I have a feeling they are exploring those immigration paralegals.
Aspiring - in my view there are two types of fees. The ones you would like to collect and the ones you are willing to collect. As a new attorney, you will certainly find yourself offering the latter category of fees more often than not – especially as rent becomes due. This is okay because you are learning and building a name for yourself. Someday (and that day may come very soon) you can collect those fees from the first category. Hang in there and build your practice.
Kartman2k – I think you have the wrong perspective on the practice of law as a solo. This is not about selling a service, it’s about selling you. Clients want their attorneys to be smart and confident. If you are going to hold yourself out as a criminal defense attorney - which I did for a number of years - then you need to understand one basic fact: your clients are generally scared about their future and they need reassurance that there is a path out of their problems or at least a less painful alternative. That means you must know what you are talking about before they call. Do your research on the subject area now. Prepare to have answers for the next call.
And for both of you... my last bit of advice is: regardless of whether you sign up clients or not... always leave them in a better place than where you found them. If you can’t help them, refer them to someone who can. If you don't practice in the area of law to handle their problem, at least offer some general advice that can help focus them on remedies and resolution.
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