How to get paid your true worth in stormy times

Although the unparalleled global pandemic no longer dominates the news, the world continues to be in turmoil. There has been changes in the political arena, as well as the monarchy, and of course economic uncertainty.

In such circumstances, fear is a constant driver and it is this, ultimately, which causes havoc. And that is probably the under-statement of the year! Let’s face it, the last few years have been absolutely bonkers and the situation doesn’t appear to be improving any time soon.

Like other businesses, law firms need to stay cool, calm and collected and definitely not overreact.

At the best of times, getting paid your true worth is not easy. It is a skill which needs to be learnt and it is certainly not taught in law school. So, at the worst of times, it is even more important that the lawyers in your firm are well versed in the business aspect of their work.

The challenge most law firms face, though, is a lack of confidence in those who negotiate fees because they fear losing the work or the client.

This is a powerful, yet negative motivator, as it means they are not in charge of those fee discussions, right from the start.

Hundreds or even thousands can be won or lost in a phone call, depending on the competence and confidence in having the right conversations with prospects and clients, at the right time.

With soaring prices, threats of a recession and economic hardship constantly being talked about, the mind may easily be caught up in the drama, the doom and the gloom.

This is what creates fear

When fear is in charge, it is very easy for people to underestimate, discount and over-service their clients. Other unresourceful behaviours include grabbing every client that comes along, whether they are commercially viable or not, out of sheer desperation.

A graphic expression which a past coaching client mentioned to me ‘hunting on the prairie’ springs to mind.

These behaviours are, in fact, a knee-jerk reaction and not made by the rational, conscious mind. Fear is a protection mechanism to keep us safe, which is all well and good when it comes to real physical danger. In such situations, it is vital. However, when they are imaginary fears, these need to be challenged.

Decisions made on imaginary fears are unlikely to be beneficial either for the firm, or the individual making them.

A loss of revenue for the business is a certainty and the people making such decisions will find themselves overworked, stressed, tired and even, dare I say it, resentful. This is definitely not a pleasant place to be.

Here’s just one example of thinking which scuppers your ability to charge effectively.

People sometimes say to me: “We can’t charge our true worth Vanessa, because of market forces.”

My reply is: “Which market are you talking about?”

Does Rolls Royce say it can’t charge its true worth? No, it does not. You don’t hear them complaining about Vauxhall Corsa either. They know their market; they know they are fantastic at what they do and they know their worth.

Do its customers ask to pay the price of a Vauxhall Corsa for a Rolls Royce? No, they definitely do not! So, if you’re providing a Rolls Royce service, are you only charging Vauxhall Corsa prices? And if you’re not providing a Rolls Royce service, are you the equivalent of a Vauxhall Astra or a Ford Mondeo? Whichever it is, you do not need to act as if you are unworthy. Highly qualified, regulated solicitors need to act like Rolls Royce.

Knowing your true worth

Yes, there is competition out there; there always will be. There will be varying levels of competence and varying levels of service too.

It’s up to the firm to decide where it wants to pitch itself, who its clients are and what are they looking for. If it’s ‘pile ‘em high, sell ‘em cheap’ and you’re satisfied with that, then fair enough.

If not, you need to decide which are the right clients for you and by the same token which are not. It should never be about price; always about the value you provide, the level of service you give and the results you achieve.

I understand Joe Bloggs does not know the difference between a regulated solicitor and an unregulated one, for example, or the impact that may have on him or her, should something go wrong.

Time to educate the public to understand the difference in the service and security/protection of the work that you do, and that not all are equal. If someone is buying based on price, the old expression ‘buy cheap, buy twice’ springs to mind.

You are not looking for scrag end, you are looking for a young, tender buck if you understand the metaphor. Discernment is the name of the game.

You can’t help everyone and you certainly don’t want to work with those who just want to push your prices down. I have a term for them: PITA clients – pain in the ‘A’ and you can fill in the blank yourself.

One thing is for sure, in every profession, no matter what the economic situation is, there are always those who charge what they are worth and those who do not.

What’s the solution?

It’s important to tackle this subject from every angle. Firstly, you have to make sure the right systems are in place for time-recording and case-management, so it is easier for lawyers to track what they are doing and better for the firm too.

However, that is not enough.

Your people need to be trained in the art of getting paid their true worth. This is not just about processes; this is about knowing what to say and when to say it. It’s about being confident having those fee discussions with clients, throughout the transaction. It’s also about managing the sales process from start to finish, no matter what.

Much of this also comes down to self-worth. And as I have been saying for years, self-worth is at the heart of everything you do and drives behaviour. Your lawyers may be brilliant technically, yet still not be commercially confident.

And nowadays, it is not good enough to be a brilliant lawyer, you must also be commercially savvy too.

I’d now like to share the first step of my unique True Worth methodology with you, to help get your started.

Take charge

If you don’t run your business, your clients will.

So often, though, lawyers do not take charge of their clients or the sales process and therefore find themselves in a position of weakness. This often leads to unpaid bills, discounted invoices, embarrassment and it is then just becoming a vicious circle.

Time to stop this misery and learn to get paid your true worth. It has never been more important to be able to do this than now.

 To receive a copy of Vanessa’s 10-point cheat sheet for getting paid your true worth, email  vanessa@thetrueworthexpert.com.

Vanessa Ugatti is creator and author of True Worth vanessa@thetrueworthexpert.com.

If you don’t run your business, your clients will.

So often, though, lawyers do not take charge of their clients or the sales process and therefore find themselves in a position of weakness. This often leads to unpaid bills, discounted invoices, embarrassment and it is then just becoming a vicious circle.

Time to stop this misery and learn to get paid your true worth. It has never been more important to be able to do this than now.

 To receive a copy of Vanessa’s 10-point cheat sheet for getting paid your true worth, email  vanessa@thetrueworthexpert.com.

Vanessa Ugatti is creator and author of True Worth vanessa@thetrueworthexpert.com.