Tuesday, 3 August 2010

Do The Maths

One of my recent posts about Solicitors charges got me thinking. Why don't Solicitors offer legal services throughout the year for a fixed annual fee-a sort of legal expenses insurance policy? I know that Accountants do something similar. Here's how you could perhaps go about it:

1. Undertake market research to identify the most popular legal services for say individuals, families and businesses.
2. Also find out how often on average such services are used.
3. Then cost each package over say a 5 year period, calculate the average and then add a contingency.
4. Clearly define the services and their scope and anticipate conflicts of interests.

I appreciate that this exercise is rather actuarial and my basic formula is clearly not in the same league as Google's algorithm or the Capello Index, but you get the gist. Hopefully, the peaks and the troughs will smooth themselves out across the board, especially over time and as the uptake increases.

Alhough this will not be for everyone, some Clients will prefer the certainty that such a service provides. It also guarantees your firm both Clients and fee income, improves cashflow and builds brand loyalty.

Perhaps I am wide of the mark and looking at it too simplisticly; after all, I am not a mathematical genius, but maybe, just maybe, I am on to something. Let me know what you think.

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