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The tide appears to have turned in favor of alternative billing solutions. Amid the continued economic tumult, firms are responding as never before to client demands for more creative pricing. As these arrangements play out, however, some firms are likely to find the deals they've struck are less profitable than anticipated. Inevitably, such unwelcome results will stem from the fact that in pricing such matters, firms have failed to account for key variables.
The problem lies with the reflexive approach to matter pricing that still prevails at many firms, where partners often use a back-of-the-envelope method to structure an offer to a potential client.
There is a better way. Firms that model matter planning scenarios provide their partners and business development staff with the crucial ability to gauge up front how different approaches to pricing and staffing will affect profitability. Modeling allows firms to make adjustments before making their bid ' and therefore price alternative billing arrangements with confidence.
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