Shaun Jardine is an attorney and advocate for value-based pricing models as an alternative to billable hours. Shaun explained how he was inspired to ditch the billable hour after attending a conference by Ron Baker in 2017. Since then, he has been working to implement value-based pricing at law firms, allowing lawyers to charge fixed fees based on the value they provide to clients rather than tracking hourly rates.
A key part of Shaun's approach is offering clients options with different service levels and price points. This gives clients choice and aligns incentives, as lawyers can earn more for providing faster turnaround times that clients value. Shaun shared examples of how lawyers were able to charge significantly higher fees than their hourly rates once they reframed the pricing around the value delivered to the client.
Shaun has written a book outlining an 8-step process for law firms to implement value-based pricing, drawing from change management principles. He has also launched an online community called the VBP Colony to facilitate discussion and sharing of best practices around value-based pricing in the legal industry. Overall, Shaun argues value-based pricing allows lawyers to better serve clients, increase profitability, and move away from the constraints of the billable hour model.
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(69) Value-Based Pricing Legal Services with Shaun Jardine of Big Yellow Penguin