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Determining and Setting Your Fees
One of the biggest challenges I had when I first started practicing was ascertaining what to charge a client. Initially, I felt my pricing was arbitrary and there was no real rhyme or reason to it. I wanted to charge clients consistently, but did not know if my pricing was too low, too high, or just right. There are many factors that go into how much to charge a client. Your geographic location is a major consideration. So area your skill level in the area of law, the type of case, the time required, and other factors.
The cost of a particular service will vary based on your geographic location. Clients in a larger city, such as Raleigh or Charlotte, will typically pay higher legal fees than clients in a small, rural town, such as Snow Hill or Elizabethtown. The financial resources and standard of living for a particular area will dictate how much you can charge a client. The goal is to garner business, not have clients walk away from your firm because you are overpriced. Likewise, you want clients to take you seriously and you do not want to cheapen your brand by appearing to be a discount service.
You can call around to different firms in your area to inquire about their cost for certain services. It is ok to shop around for the answers you need. If you have an attorney friend who practices in your same practice and geographic areas, call them and ask them what they think a good price would be for a particular service.
Determine what work needs to be done in a particular case. Is this a simple traffic matter or a difficult contract matter? You may overestimate the time required in a particular case and if you do, it is ok. Clients always love to get money refunded to them. There may be times when you expect a case to be easy and involve relatively little time only to find out that once you get into the case it will require more than you expected. I strive to honor the prices I quote my clients even if I end up putting in more work and effort than my fee covers, but this depends on the circumstances.
Your fee is also determined by your level of skill in this area of practice. Is this a new area of practice for which you have little to no experience? If so, it is not reasonable or ethical to charge an exorbitant amount to cover your time to get up to speed knowledge-wise. You would not charge what a more experienced attorney would charge who has the heightened skill and knowledge. Your fee should be reasonable, but enough to compensate you for the work you put in and effort it takes to resolve the legal matter.
For those who practice criminal law it may be a great idea to develop a price list for various charges based on their classification level. For example, a class 3 misdemeanor is a certain amount, class 2 is a certain amount, etc., all the way through your felonies. A class I felony may be worth $X amount, while a class A felony is worth (or begins at) $X amount. These prices may not be set in stone depending on the facts and circumstances of each particular case, but it will give you a benchmark by which to quote prices to clients. Also, it will help you be more consistent in your pricing.
Lastly, you have to consider your worth. Are you a cheap attorney who provides cheap, unprofessional, fly by night services to clients? OR Are you a knowledgeable attorney who takes each case seriously, researches your cases, and gives your 100% to your clients? How much does your work and law license mean to you?