The idea for this post was inspired by Ron Baker of Verasage Institute. After checking out some of his writings in recent months, I stumbled across one of his key concepts in the search for value. The definition of value is contained in this formula:
Value = Customer Profit – Price
I modified Ron’s formula slightly to illustrate the point of this post. What this formula means is that the value you provide to your client equals the increase in customer profit resulting from your legal work and value added services minus the price you’re charging for your legal work.
With all the fuss over alternative billing lately, many have been talking about the need to cut costs and run lean operations to make money in the face of decreasing prices for legal work.
However, the drive to cut costs to match dropping prices for your work is in…
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