On June 26 two simple words announced the arrival of a new law firm pricing database.

“Hello World!” was the first tweet from the industry’s most recent pricing database, LegalDatum. It joins ALM, Thomson Reuters, TyMetrix and Valeo as software tools that aim to provide competitive intelligence regarding attorney fees. Unlike the current four, LegalDatum uses a voluntary, self-reporting survey methodology to collect data and report its findings. The other databases rely on publicly available court records which detail individual attorneys’ billing rates.

LegalDatum is a joint veture of Validatum, a UK-based law firm pricing consultancy, and Beaton Capital, an Australia-based strategic and financial consulting firm for professional services.

Pricing Theory
These pricing databases help law firms understand their position in the marketplace and especially in the minds of their prospects and clients. Knowing your competition’s price helps you in three significant ways:

  • Reference Price:  because prospects/clients know your competitors’ pricing, their frame of reference affects their willingness-to-pay; therefore, knowing their reference helps you in your pitches and negotiations.
  • Next-Best Alternative:  because economic decisions are based on choices, prospects/clients have at least one back-up provider; therefore, knowing your prospects’/clients’ other choice(s) helps you understand their willingness-to-pay.
  • Brand Positioning:  your price sends a message to the marketplace about your value, which needs to be consistent with your value and your market positioning; therefore, knowing your competition and their pricing helps you maintain your desired position.

Pricing (Hourly Rates) Resources

  • Billing Rates Database by ALM (WEBSITE)
  • LegalDatum (WEBSITE
  • Public Rates by Thomson Reuters (WEBSITE)
  • RateAnalyzer by TyMetrix (WEBSITE)
  • Valeo Attorney Hour Rates and AFA Database (WEBSITE)

     TyMetrix’s also publishes an annual benchmarking report: Real Rate Report (WEBSITE)

LegalDatum Becomes Fifth Law Firm Pricing Database
Facebooktwittergoogle_pluslinkedinmailby feather

One thought on “LegalDatum Becomes Fifth Law Firm Pricing Database

  • July 8, 2013 at
    Permalink

    Hi Patrick, we really appreciate you spotting this and bringing it to people attention. We are very excited about the help we are going to be able to offer law firm partners and management in the exceptionally challenging area of pricing; a service developed by private practice lawyers for private practice lawyers.

    Richard Burcher
    Director LegalDatum and Validatum

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.