How to Confidently Raise and Communicate Your Rates

How to Confidently Raise and Communicate Your Rates

Lawyers often struggle with pricing services and then telling clients they're raising their rates.

If you struggle with this too, it's essential you learn exactly when it's time to raise your rates, how to confidently raise and communicate your rates (without discounting), and know when to remove or add a practice area.

These skills are essential not only for the health of your practice, but also for your sanity.

When you follow what I share in this article, you'll feel a positive difference in your interactions with your clients, your business, and your work.

In fact, you may even love being a lawyer again.


Is It Time to Raise Your Rates?

The first step in this process is asking yourself a question that most lawyers neglect:

"What do I want?"

It sounds simple, but it's not easy.

This question is crucial because it forces you to think about your ideal practice and the value you bring to your clients.

Before we dive deeper, let's talk about what your rates should not be based on if you want to grow a practice aligned with your desires:

Don't base your rates on what other people charge.

This turns your work into a commodity and leads to a race to the bottom. Remember, you're not selling candles in a grocery store - you're providing specialized legal services.


Don't base your rates on what you think potential clients or current clients think, or what others tell you your rates "should" be.

Everyone has their own beliefs about money, and as long as you allow their thoughts to dictate your reality, you'll stay within the confines of their limitations.

My favorite phrase on this topic, "Keep your mind out of their wallets."


Don't make decisions about rates based on fear, anxiety, worry, shame, or disappointment.

These emotions block you from making the best -- most strategic -- decisions for yourself and your practice.


So, how do you know if it's time to raise your rates?

Start by knowing your numbers:

  • How many clients do you have?
  • What's your gross and net monthly income?
  • What are your expenses?
  • Where are your clients coming from?
  • What services are they purchasing?
  • How much time are you and your staff spending on each type of matter?

This data will help you understand where you're wasting time and where you can invest it more wisely.

Not only that, but you'll begin creating a sense of safety for yourself to take uncomfortable action like raising your rates.

When lawyers raise their rates, they work less, feel less resentful, save time by not procrastinating (because they're not resenting their work or their clients), and start attracting their best clients.

They have more energy to think strategically about their practice and life, and their firm becomes more sustainable.

It's not just about earning more - it's about creating a practice that energizes you and serves your clients better.


Part 2: Raise Your Rates and Communicate Them Confidently

Raising your rates requires growing your belief in your capabilities, the results you give clients, and that your ideal clients want what you have to offer.

Remember, if your clients can't pay, they're not your ideal clients.

This might sound harsh, but it's essential for building a sustainable practice that allows you to serve at your highest level.

Let's Talk Mindset

Before talking about your rates with anyone, fill yourself up by reminding yourself of the value you give your clients.

Remind yourself of all the conversations you've had with clients who've told you how much you helped them and how they had no idea how helpful you would be.

If you feel shaky going into a money conversation, it will come across, and you'll be in a reactive state instead of a resourceful one.

This is about more than just numbers - it's about your confidence in the value you provide.

Ask yourself these questions:

  1. On a scale of 1-10, what do I believe in my ability to get results for this client? If it's not a 10, what would you need to believe to make it a 10?
  2. What is the impact my services can have on my client's life? Go beyond the immediate legal outcomes and consider the broader implications. Are you providing peace of mind? Securing their future? Resolving conflicts that improve their daily life?
  3. What thoughts create safety or calm for me? Having a list of these thoughts can be incredibly grounding before entering rate discussions.


Part 3: Evaluate Whether to Remove a Practice Area or More Confidently Market Another

This evaluation requires doing the work from part one and bringing that awareness of what you want.

Ask yourself these questions to ensure you're aligning your practice with your strengths, passions, and financial goals:

  • What are your practice areas and what do you charge for each? Treat each of your practice areas as a separate business.
  • How many clients do you have in each area?
  • Where is the majority of your income coming from?
  • Is that where you want the majority of your income to come from?
  • Where do you want the majority of your income to come from?

These questions will help you discover where you may be spending too much time for too little return, or if you're ignoring marketing practice areas you enjoy.

It's not uncommon to find yourself stuck in a practice area that's profitable but doesn't excite you. Recognizing this is the first step to realigning your practice with your passions.


Your Next Steps

  1. Get coached on areas you want help in. Getting an outside perspective can illuminate blind spots and opportunities you might be missing.
  2. Decide on at least one action you will implement from what you've learned to create a practice you love. Small, consistent steps lead to significant changes over time.
  3. Revisit this information every 6 to 12 months, to review and reassess the direction of your practice. Your goals may change, and your rates should reflect that evolution.

Remember, it's okay to be creative and use your imagination. It can be easy to feel stuck with current prices, but change is possible.

Whether you're considering different rates for complex matters, serving both high-income and low-income clients, or navigating rate decisions within a larger firm, the key is to align your rates with your values and the value you provide.

By confidently raising and communicating your rates, you're not just improving your practice - you're enhancing your ability to serve your clients at the highest level.

You're also setting an example for other lawyers who might be struggling with the same issues.

So take a deep breath, trust in the results you get your clients, and take that next step towards the practice you truly want.


If you're ready to take your practice to the next level and want personalized guidance on implementing these strategies, I'm here to help.

Book a strategy session with me at dinacataldo.com/strategysession , and let's create a plan to build the practice of your dreams.

Together, we can work on building your confidence, refining your pricing strategy, and aligning your practice with your goals and values.

Tell me one takeaway you got from this article in the comments below.

I want to cheer you on for the next step of your growth.

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Dina


Dive deeper into this and other topics just for lawyers.

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How Dina Can Help You

Dina Cataldo is a leading legal industry expert, master certified coach, speaker, and host of the popular podcast “Be a Better Lawyer.”

She helps lawyers take control of their lives and law practices by helping them remove obstacles to growth and create time freedom and peace. These skills allow lawyers to build their practices with more ease than they ever imagined possible.

Dina's insights and advice have been featured on various prominent platforms. She's spoken at the Alabama State Bar Annual Meeting, on podcasts like “Law Firm Autopilot” and “Maximum Lawyer Podcast,” and more.

Through her coaching and speaking, Dina has positively impacted the lives of thousands of lawyers, helping them manage their time, overcome overwhelm, boost self-confidence, and find fulfillment in their legal careers.

Her empathetic and strategic approach has made her a sought-after coach among partners, solo practitioners, and boutique firm owners.

Dina Cataldo is a trailblazer in the legal industry, and she continues to inspire and empower big hearted female lawyers, to achieve professional success and personal fulfillment.

To book a call with her to learn more about working with her one-on-one to build your practice with ease instead of overwhelm, go to dinacataldo.com/strategysession.

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