"My father was an amazing lawyer. Everyone knew that when Larry the lawyer walked into a room, he was the smartest guy there. Years after he retired, he was walking down LaSalle Street in Chicago when a former client spotted him, ran across traffic, and asked if he was still practicing. My dad said no, he was just in the city helping with an arbitration. The client smiled and said, "You were the best lawyer I ever had. And God, were you cheap.""
"He'd always believed he was fair with his billing, but that exchange made him realize he may have confused fairness with undercharging. Like many lawyers, he never saw himself as a businessperson - he was focused on service, not pricing strategy. But the truth is, the business of law requires both. Too many lawyers undervalue themselves, write down or write off time, and justify it in the name of client care. In this article, let's explore why that happens and how to fix it."
"When a lawyer discounts a bill before the client even asks, it's rarely about the client, it's mostly "head trash" that the lawyer is experiencing. Fear of confrontation, discomfort around money, and a desire to be liked all play a role. But clients don't respect discounts; they respect value. Do you think your dentist is concerned with the price you're paying for a filling? Professional services should be treated the same way."
A memorable anecdote describes a highly skilled lawyer who realized he had been undercharging after a former client praised his skill but called him 'cheap.' Many lawyers prioritize service over pricing and fail to see themselves as businesspeople, leading to habitual discounts and write-offs. Psychological factors such as fear of confrontation, discomfort with money, and desire to be liked drive premature discounts. Clients respond to clear, demonstrable value rather than low prices. Undervaluing legal time erodes perceived expertise. Effective practice management requires combining excellent service with confident, value-based pricing and avoiding reflexive discounts.
Read at Above the Law
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