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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Driver sued for refusing to sue


I’m sure that most people will be shocked by this story but, for me, it is the back-story of the claim culture, the role of the insurance and secondary industries that it “feeds”. Sooner or later we realise who the victims are!

No-win, no-fee lawyers such as this can pay claims companies up to £500 for passing on the personal details of people injured in car accidents, although there is no evidence that this particular firm has done so. In January, Mr Hopper says he was contacted by a GP surgery asking him to attend a medical in respect of the claim. At this point, any lingering stiffness in his neck was long gone. Mr Hopper’s conscience kicked in. He would not lie to a doctor, so he pulled out of the claim before his appointment. He told the law firm he no longer wished to pursue the claim. They sent him a letter saying that as he had discontinued the court action, he was liable for their costs, which amounted to £1,140. h

You may already know that the Government have already sought to shake up civil justice related to the “no win no fee legions”.

This is a topic I have written about in much more detail before and these may aid your understanding of the true nature of the problems and who actually benefits from