Chloe Wingate
During this cost-of-living crisis, many businesses have had to increase their prices to account for the higher rate of inflation.
But it can be tricky knowing how to make your clients aware of this – especially if you are a law firm whose valued customers are already feeling vulnerable, both financially and emotionally. So, here are some tips on changing your fees and informing your client.
Think it through
Set some time aside to properly consider the adjustments you are making to your fees. Increasing all costs by a certain percentage is not necessarily the right course of action, as some services may be more complex, thus requiring more time and resources. So, use this as an opportunity to take stock of your services and check your pricing is logical.
Check your agreements
Don’t get caught out by the small print on your own contracts. Check what your initial client agreements are, as some may account for automatic fee increases whereas others may require you to give a specific amount of notice. Again, take this as a chance to decide if you want to make any changes to your client agreements going forward.
Communication, communication, communication
With regards to making your clients aware of fee changes, it’s about being transparent and clear with your communication. You may wish to consider giving clients some notice before the price increase comes into effect, so they do not feel like they have been caught off guard. After all, you need to retain the trust you worked so hard to cultivate. To soften any potential blow, you may decide to make people aware that there will be a price increase, then go into specific costings later. To avoid disgruntled clients, consider communicating this information via different channels, so you can be certain that everyone has received the message.
Show your workings
In your communications explain why you have implemented the price increase. It is totally understandable that you have had to make changes, considering that Bank Rate is at the highest level it has been for 16 years. In the year to May 2024, prices rose by 2% in the UK which, despite being high, is still significantly lower than the 11.1% seen in October 2022. If you explain the context and the impact that this has had on your business (e.g. increased rental costs as well as resource and software costs), your trusted clients should be understanding.
Make it worth it
During these economically unstable times, your dependability as a firm will be invaluable to your clients. So, if you keep delivering excellent services, these changes are likely not to affect your clients’ commitment to you.
Talk to us
TOMD has been helping law firms to navigate challenging times for many years. If you would like to speak to us about how we can help you, please contact us on info@tomd.co.uk.