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WebSite: http://Needless to sag under crisis?
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A negative answer to the question: "has influenced a crisis for you?" - Will be cunning. If anyone's economic realities did not touch
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A negative answer to the question: "has influenced a crisis for you?" - Will be cunning. If anyone's economic realities did not touch directly, the indirect influence felt each. How noticeable was the process of economic for law firms and their clients? Are they able to change or adjust their business plans, in order to maintain profitability, profitable and even to continue development?
As with the crisis in the economy have faced as if law firms, so as well as their clients, it is clear that now is not can not affect the volume and value of legal services. But no less than lowering the prices of legal services noted in the distance does not in each firm. Most, especially firms that occupy leading market positions, hourly rates have kept their own staff (on which depends the cost of services for clients in general) unchanged. This is explained by the fact that it remains the same original quality of services provided. It appears respondents note that it is now inappropriate to change the existing rates, as they are inherently economically justified and include a minimum reasonable profit.
In some companies, the village had a small increase in cost of services associated with the increase of capacity requests of clients and the high workload of the firm.
Separately it is necessary to mention the companies, which only this year came on the market. The cost of their services are formed in the current environment, so most of these firms have a rate lower than that held firm. But it is worth noting that it is "price collapse" of market policies did not cause. After all, if the new company, it does not mean that it is the original quality of services working in her lawyers below. However, quality service, undoubtedly, have a right to be properly paid.
However, even if the companies, which place remained the same hourly rate of lawyers, clients have the opportunity to "save". This is achieved in connection with some factors. First, in certain areas, for example, M & A, project finance, real estate, the scale of projects, however, so the length and complexity of projects has diminished, that it is lessening the cost of the law firm in support of the project. Hence, as well as lowering the cost of services for clients.
For individual projects, in which the number of time spent disproportionately with the result, the company allow the use of a solid bid for the service. Therefore, prices for such services, like provision reduced.
Note that now, despite the loyalty and flexibility in pricing, legal firms for the most part did not consider lowering the prices seemed a means of preserving the client. Indeed, the importance that now requires the customer - the original quality of services. As well as the client is allowed to hold as soon as by providing highly skilled, high-quality legal services which meet the expectations of clients seeking help. In this case, in the same time such a weapon, exactly the view of many law firms are likely to be acquitted in the case of attracting new long-term client.
In contrast, held player market, so a sort of approach used in the new law companies, which are building their own business in the fall of the market, in which case there is a crisis.After all, if lowering the client's budget for legal services was the reason for the waiver of expensive services, the need for legal assistance was preserved - so ask the customer to a specialist, which offers the same or not far below the original quality, but just for more low prices.
Furthermore, There is a view that is why in the present economic realities of the legal profession should reconsider its policy in accordance with customer acquisition. If a period of stability and / or growth stress on the original quality of services is justified, because now customers choose counsel with caution, including as well as on economic calculations. It is therefore assumed that it was law firms, which again does not reconsider its pricing policy and continue to practice unreasonably inflated prices may have to compete with stronger operational players. As a result, likely be that now the new law firms in the market as well as the company revised the pricing downward, will be provided with jobs as well as building business relationships with new clients. But others - to give their position more mobile as well as new players in the market.
It is worth noting that now despite the economic transformation of the outflow of customers are not told any one of our respondents. Client base, rather, nothing at all transformed. Thus, all law firms noted that it took place lowering activity of some clients, due to crises, and the denial of service in general it does not lead - has been declining capacity and number of requests. At the same time, celebrating at the refusal of some services the same clients, or even a new contact for the sake of other. As the situation caused by the crisis so (for example, lowering of activity in M & A, investments, real estate, addresses exactly offset by the restructuring, the return of debts).
With regard to new firms, the issue of customer churn to them not relevant. It is not about whether they first stable client, in such environments daring step up personal business is not there would be.
Simultaneously, it is worth noting that law firms now one of the principles of its work is called flexible pricing policy and its own approach to each client regardless of the economic situation. However, so at present these principles most often applied, because all clients, even if treated with the same problems - completely different. They have different needs, so as well as relationships with customers have the right to build exactly the principle of "quality as well as time: in case the customer is ready to sacrifice one of these criteria, in that case as well as the cost, of course, will vary.
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