Get Rid Of The Bargain Shoppers

What About Clients? (WAC) alerted me to the post entitled Top 10 Ways To Fire The Client From Hell.  The first thing InsideCRM, the author of the post does is identify the clients from hell by traits.  The first one caught my attention because it is what I have been harping on for a good while - THE BARGAIN SHOPPERS.

Whether you are soliciting consumer clients or corporate clients or even big business, you are never going to win representing the bargain shopper.  And believe me, they exist at all levels.  Many have tried, and many have failed.  You are certainly not going to win doing so while trying to practice on your own as a Third Wave attorney.  The two mix like oil and vinegar. 

This has been my problem with price competition, fee capitation, and low retainer amounts.  But, no matter what or how you believe you must charge or calculate fees you need to do so in a way that does not merely attract this type of client.

As stated in the post, "As a general rule, the client who pays the least will expect the most. The words 'I need this done cheap' should strike fear in your heart, not because of profit margins, but because this client will nickel-and-dime you within an inch of your life for extra work, support and other nuisances that were not in the original scope".

The solution is to raise your fees (no matter how you charge or calculate what these might be) and raise your retainer amounts.  This will allow the bargain shopper to pass you by.

You do not have to lecture me about it, or send me nasty emails.  You cannot convince me that catering to the bargain shopper is ever going to do you any real good.  If you want to do so, go right ahead.  Just do not call me a few years from now crying about not enjoying the practice of law.  Bargain shoppers cause you more trouble than they are worth and they pay you substantially less than what you are worth.  You price compete and cater to this group because you live in fear that you will not get a lot of new clients.  The issue should be, however, especially as a Third Wave attorney, that you get a few better clients that will pay you more for your quality service and take less of your time.  If you get a reputation as catering to the bargain shoppers, you will not get very much of the "good work".  It is that simple.  You can take it to the bank.  (Wait, you cannot take it to the bank because you are representing the bargain shopper).

Now, if you practice at this level there will be people out there that simply will not be able to cover your fees.  You want to help and you should help.  I am not saying that you should not make an exception or two for a worthy cause.  I am not saying you should not take pro bono work.  You absolutely should.  But, take on a worthy case for free because you want to do it, and not because you get suckered into doing it.  Also, if you make more on fewer cases you can afford to take on a freebie without regret.

There came a time in my life when I knew I had to stop accepting these types of clients.  I know how hard that is to do.  You sit in self doubt that nothing of meaning will come into your office soon.  You regret turning down a little money because you need it right then.  What I have found over the years, however, is that if you avoid the bargain shoppers you will work a little less and make a little more and be a tad happier.  And, what is wrong with that.

Comments

[Elaine]

Bargain shoppers are annoying, but the most dangerous clients are the people who have become convinced that the world owes them something. You cannot trust them to play by any rules.

Elaine Dowling
Oklahoma City, OK
www.dowlinglawoffice.com

[Zale Dowlen]

What I find interesting about this insightful post is that my whole industry, Property and Casualty Insurance, is a "bargain shopper" when it comes to litigation attorneys. My industry is the one that wants to bring "flat rates" to the average insurance defense firm. What amazes me even more is the firms still want to do 100% Insurance Defense work.