Discounts are coming after the point of hire compelling law firms to show value first and learn to negotiate second.
Wellesley, MA (PRWEB) June 03, 2014
The largest law firms charge clients more—31.4% more than a typical large firm and 54.3% more than a smaller law firm—commanding premiums for access to client service, large pools of talent and resources. The BTI Consulting Group’s newest report, What Clients Pay and What Law Firms Charge: BTI’s Billing Rate Reference 2014, reveals large law firms are proving they can leverage resources and provide high value—earning them clients willing to pay rate premiums—even while some corporate counsel turn to smaller law firms in the hopes of lowering outside counsel fees.
Corporate counsel pay top dollar for the top players, paying 30% premiums to senior partners. Risk-averse corporate counsel expect high return on investment when they spend top dollars for the most senior partners. Not only do they expect the senior partner to deliver results, clients demand high levels of client service and outsized value at this price.
“Corporate counsel are exacting a substantial discount from 76% of their law firms,” comments Michael B. Rynowecer, President of BTI. “Clients are selecting their firms and then negotiating fiercely. The discounts are coming after the point of hire compelling law firms to show value first and learn to negotiate second.”
Rates are found to be less varied at the partner level, where differences in hourly rates across firm sizes decrease. While the most uniformity in hourly billing rates exists at the associate level, largest law firms still earn a premium, with large and smaller firms more aligned on average.
BTI’s newest report, What Clients Pay and What Law Firms Charge: BTI’s Billing Rate Reference 2014, was produced in partnership with Law360. BTI and Law360 collected information for the report through a survey of more than 750 private practice attorneys and more than 300 corporate counsel. Now in its 13th year, BTI conducts the only continuous benchmarking market study of corporate counsel worldwide.