7 Common Mistakes:
#2 Failing to know and truly understand your costs
This is a mistake because if you don’t fully understand in detail the costs of your conveyancing department then how can you work out and quote a price that builds in an acceptable profit margin per transaction?
Many firms do not really understand their detailed financial management information, and some firms don’t even produce it! Whilst most residential conveyancing is now conducted on a fixed fee basis, you still need a way to account for time spent on each conveyance. You need to have a ‘baseline’ for evaluating how the team is spending it’s time to check matter profitability and consider process improvement. What ‘is important’ to the client is their perception of the ‘value’ of the work you do for them. What level of service do they want?
Whilst the legal work you do will always be consistently good, there are ways to offer the client alternative pricing options so they can choose the amount they are willing to pay to match their expectations of the level of service they want. You cannot afford to ‘gold plate’ a transaction and deliver a ‘Rolls Royce’ client service level if your client is only willing to pay for a ‘Mini’.
Tip: Know your costs so that you can measure profitability per
transaction. Find innovative pricing alternatives
to help clients choose the level of service they want and are prepared to pay for.
ETSOS provides an easy way to increase your profits using the Quotation and Referral System (QRS). QRS enables you to produce a branded conveyancing quote and email it your clients with supporting marketing material in under 60 seconds. It can also be used to build your network of referring estate agents and mortgage brokers and generate statistics on conversion rates and reasons for non-conversion.
To find out more contact David Opie on 01524 220 001 or email firstname.lastname@example.org
Avoid the 7 common mistakes and you will improve your Firm's profits - GUARANTEED!
If you feel your firm could do with some help to avoid these common mistakes, contact Legal Mentors for a free, no-obligation chat about how they have helped other Solicitors to avoid these mistakes and thus make more profit.
Call Martin Wyatt on 01233 712150 or Michael Porter on 01264 810595