Before I officially started my own practice as my sole revenue generator in 2010, I started the law firm about a decade earlier because I probably knew I would be on my own.
The first idea for The Rosenbaum Law Firm was a flop. Charging $100 for wills and $150 for income tax returns, meant working a lot for little money, and I could never have made it up in volume. People don’t hire law firms as they shop at Wal-Mart. Professional services aren’t bought and sold on price.
Yet, over the past 25 years, I have see plan providers feel that they can make do, by charging next to nothing for their services, whether it’s advisors or TPAs. Whatever discounting you give in pricing, you are not likely to make it up in volume. You need to make money and offering your services for next to nothing might benefit the client, but won’t stop you from going out of business.
