MANAGING THE MIDRIFF:
CORRECTLY PRICING THE BULK OF YOUR
PRACTICE'S SERVICES
MANAGING
THE MIDRIFF
by Alain Lemay and Danielle Olofsson of
Dentons Canada LLP
Conscious of being in an over-lawyered and
under-cliented market in which consolidation is
inevitable, it seems we price much of our work not
to generate revenue or cover costs, but to undercut
our competitors. The justification being that those
firms without the processes in place to produce
better work faster and more cheaply will end up
bankrupt. But is pricing alone really the issue? Or is
it simply a symptom of a greater discomfort — how
to handle the midriff?
TRADITIONAL PRICING AND
PRESENT CHALLENGES
Correctly Pricing the Bulk of Your
Practice's Services
Traditionally, law firms have set their billing rates
to cover their cost structures. They have used a
variation of a formula whereby a lawyer's salary is
multiplied by a factor that depends on their level
(the senior partner's factor being lower than that of
the junior associate); add the following components:
•Benefits
•The lawyer's share of fixed costs (which can vary
depending on status)
