Legal & Professional services:: re-connecting pricing to cost, profit & value


Sell moreWhilst the article from which this extract is taken relates specifically to the legal profession, the truth of the matter is that this isn’t just an issue for lawyers…it’s a fact of life, the new norm for service industries!

The graphic on the right was aimed at Insurance Brokers but these are common issues.

I remember some of my earliest Economics lessons dealing with “elasticity of supply and demand”. We are now in the trough that, inevitably, followed an artificially prolonged series of peaks. As a result, the ‘Supply’ created to serve in the good times, when the revenue was there to sustain it, is now a surplus (excess capacity). The market has contracted, demand or, at least, budgets have fallen. Value and cost is under close scrutiny.

Suddenly “how well you know your client” is back at the top of the agenda. So are a few other questions:

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