How to Price a Project on LAWCLERK™

SHARE:

Share on facebook
Share on twitter
Share on linkedin
Share on email

We are often asked how attorneys should price their projects on LAWCLERK™. While there is no answer to fit all circumstances, our suggestion is that attorneys price their projects at 35-40% of the estimated billable cost of the project. The traditional rule of thumb is that a full-time associate’s collected billings should be allocated 1/3 for profit, 1/3 for overhead, and 1/3 for the associate’s compensation. In reality, the profit component is rarely achieved as any loss of productivity by the associate or uncollected billings is a dollar for dollar reduction in the owner profit because compensation and overhead are fixed costs.  By pricing your project between 35-40% of the estimated billable time, you can attract top talent with subject matter expertise, avoid fixed overhead, and achieve a greater profit margin than the traditional model.

Here are a couple of actual examples of how attorneys have priced projects when they billed the Lawclerk’s time at an hourly rate to their client:

  • Project – Motion in Limine
    • Flat fee price paid by the attorney: $500.00
    • Hours worked by the Lawclerk: 7.9 hours
    • Rate attorney billed the client for the Lawclerk’s services: $185/hr
    • Profit for the attorney: 7.9 X $185 = $1,461.50 – 500.00 = $961.50 profit

 

  • Project – First Request for the Production of Documents
    • Flat fee price paid by the attorney: $400.00
    • Hours worked by the Lawclerk: 6.25 hours
    • Rate attorney billed the client for the Lawclerk’s services: $185/hr
    • Profit for the attorney: 7.9 X $185 = $1,156.25 – 400.00 = $756.25 profit

But, you should not feel confined to the billable hour. Clients often prefer flat fee billing, which is made easier by LAWCLERK™, because with LAWCLERK™, you know exactly what you are paying the Lawclerk to complete the project for you. For example, if you need a subpoena duces tecum completed, you can advise your client that you will complete the subpoena for $300.00 and then post the project at a flat fee price of $100.00, thereby making a profit of $200.00.

While we provide these recommendations for how to price a project on LAWCLERK™, we encourage you to find the methodology that best suits you, your clients, and your practice.

Greg Garman

Greg Garman

DON’T FORGET TO SHARE THIS POST!

Share on facebook
Share on twitter
Share on linkedin
Share on email

Subscribe to get our best
content in your inbox

    Related Posts…