Management Assistance Program

Pricing Legal Services Based on Value, Not Time: A Toolkit for Lawyers

By Julie Bays

Building a Justice-Conscious Practice was the subject of remarks by Jessica Bednarz, the Director of Legal Services and the Profession at the Institute for the Advancement of the American Legal System (IAALS), at last week’s Oklahoma Access to Justice Summit. During the panel session she mentioned her work on the Pricing Toolkit. I recommend you download and review it.

Bednarz brings a wealth of experience in access to justice and legal innovation. She previously worked at the Chicago Bar Foundation, where she created resources like the CBF Pricing and Limited Scope Representation Toolkits. I’ve used this toolkit for my CLE’s on Limited Scope Legal Services

The Pricing Toolkit walks lawyers through the fundamental shifts required to move from cost-based to value-based pricing. It tackles common myths about hourly billing and lays out a step-by-step framework for creating a value-based pricing menu.

Key features include:

  • An explanation of the different types of value lawyers provides.
  • Strategies for accounting for variables and risk in pricing.
  • Tips on conducting market research to price competitively.
  • Examples of pricing models and fee structures.
  • Checklists for engagement agreements, client screening, and more

Whether you are beginning with value-based pricing or looking to improve an existing model, Bednarz’s toolkit provides practical guidance tailored to the legal market. The resources help lawyers focus on client value, improve profitability and develop pricing plans that work for both the lawyer and the client.

For lawyers seeking to move away from the billable hour, this toolkit is an invaluable guide to value-based pricing. You can download a copy and find more resources at Jessica’s website. www.adifferentpractice.com

Originally posted in Oklahoma Bar Association’s Courts and More, October 25, 2023.