For many, in particular if you work for larger firms, you will probably not have to deal with this question from client. Most likely, someone more senior or in accounts will deal with the billing of clients. However, if like me, you are in a smaller firm, and dealing with clients on a one to one basis, you may well be asked this question – one which by all accounts could and sometimes does send a shover down the spine! Not because it is a bad question, but just one where, as a solicitor working in a firm with set fees, there is not much I can do. But the more prevalent question is, why should I even consider a discount?
Perhaps, at the start of my career, I sometimes felt bad about charging clients the fees that I was, especially for work which was maybe not as complicated as areas I was dealing with for other clients. But as time has went one, I have thought this over, and take a completely different view now. I am offering a service which by all accounts is one which is specialised and so why should I not charge for that? For the time and expertise that I bring to any client’s issue that I have working on. In addition, at the very start of the process, the client will receive a letter detailing and outlining the fees before any work is carried out. They are well aware of what the potential cost could be, as an estimate is provided, and yet when asking for a discount at the end of the matter, why then should it be considered?
It is certainly a question which will come up from time to time, and one to not take personally or a reflection on you. So I try to remember the following when that dreaded email or call comes in.
- Stay calm and professional. It’s understandable to feel frustrated or annoyed when a client asks for a discount, but it’s important to stay calm and professional. Remember, your client is probably feeling stressed and anxious about their legal situation, so it’s important to be empathetic and understanding.
- Find out why the client is asking for a discount. There are a few reasons why a client might ask for a discount. They may be struggling financially, they may not be aware of the full cost of your services, or they may simply be trying to negotiate a better price. Once you understand the reason for the request, you can better address it. As I said before, most firms will send a letter at the very start of the process providing an estimate, therefore clients should have a good idea of the final cost. It is probably worth referring them back to this letter in a polite and gentle way.
- Explain your fees. With reference to any letter setting fees out at the start of the process, explain why the fees are what they are. Always be clear and transparent about your fees. Explain what factors go into determining the final cost, such as the complexity of the case and the time involved. If the client is still not satisfied, you can offer to break down your fees in more detail or refer them to someone more senior.
- Offer a compromise. If the client is still adamant about getting a discount, you can offer a compromise. For example, you could offer to waive your hourly rate for the first few hours of work, or you could agree to them paying over a number of weeks. This would be unusual, and the case will have to be referred to someone more senior who can authorise this. To be honest, I would try to stay away from this, but take advice from your supervisor and see what can be done.
- Be prepared to take further legal action. If the client is not willing to pay your full fee, you may need to consider taking further legal action. This is not an easy decision, but it’s important to protect your own financial interests. Again, this will be the decision of someone more senior, but may be the only course of action to get the costs incurred by the firm and to get paid for work done and undertaken in good faith.
It’s important to remember that there is no one-size-fits-all answer to this question. The best way to deal with a client who asks for a discount will vary depending on the specific circumstances. However, by following these tips, you can increase your chances of handling the situation in a professional and effective manner.
Having said the above, some clients who have been with your firm for many years may qualify for some form of discount, so any rules the firm has on this could be referred to and applied in those cases.