Simply put,
they are causing your Firm to lose revenue.
With Alternative Fee Arrangements (AFAs) becoming the norm in the Legal industry, it is
imperative to track – and refresh –
rates diligently.
If an expired rate is being utilized, the only one benefiting is your Client – certainly not the
Firm.
Our
experience has shown that Firms struggle with monitoring rate end dates, which
equates to lost revenue. Unfortunately,
it is not uncommon to find rate arrangements that are three to five years old –
or older.
From our analysis of Client rate overrides, we have found situations where lost revenue
opportunities have exceeded $500,000 per year simply due to expired rates.
This
translates directly to lost billing revenue, and correspondingly, lost Partner
profits.
So, what can you do to fix the epidemic of old rates?
Mark you calendars! To help
maximize your Firm’s billing revenue, we recommend doing a routine Rate Audit (Rippe & Kingston has the tools to help: LMS+ Practice Management Rate Audit Watchlist and Rate Audit reports).
We
strongly suggest that you make this a priority and remember to refresh old rates – it will increase
profitability!
