One of the biggest challenges law firm owners face is figuring out what to charge for their services. Get pricing right, and you can earn more money while attracting clients who genuinely value your work. Get it wrong, and you end up overworked, underpaid, and stuck dealing with clients who argue every invoice.
The good news? Pricing your legal services does not have to be as complicated as most attorneys make it. And raising your rates—something many lawyers avoid for years—is one of the most impactful things you can do for your firm’s profitability and your quality of life.
Why Pricing Feels So Hard (But Doesn’t Have to Be)
Most attorneys get wrapped up in their own heads when it comes to pricing. They worry that if they price too high, no one will hire them. Price too low, and they will not make any money. And then there is the nagging fear that if their rate looks similar to a competitor’s, potential clients will just pick someone else.
Here is the reality: pricing your services can actually be pretty straightforward. You should generally be charging about the same as attorneys who are a similar firm size and experience level in your market—not the big law firms down the street, and not the bargain-basement solo who undercuts everyone. Think of the attorneys you know in your community who run comparable practices. That is your starting benchmark.
How do you find out what your peers charge? Just ask. Attorneys are unique among professionals in that they actually know their competition well, refer work to each other, and talk openly at bar association events and even in the courtroom. A simple conversation over coffee or at a networking event can give you exactly the information you need. You can even call a competing firm and ask their receptionist—you would be surprised how often they will share a ballpark number.
For a deeper dive into setting your fees strategically, check out our full guide on pricing strategies for law firms.
Why Most Attorneys Delay Rate Increases
One of the first questions we ask when starting a new coaching engagement is: when was the last time you raised your rates for new clients? The answer is almost always too long ago.
The costs of running a law firm go up every single year. If you are not raising your rates along with those costs, you are effectively making less money each year. Worse, when you let years pass without an increase, you eventually need to make a dramatic jump—and that is much harder to execute than small, consistent annual adjustments.
The real reason most attorneys delay? Fear. They worry that even a modest increase—say $25 an hour—will drive clients away. In over a decade of working with law firms, I have never seen that actually happen. Clients who value your services are not going to leave over a reasonable rate adjustment.
When Is the Right Time to Raise Your Rates?
The easiest time to raise your rate is when your book of business is full. When you are out of capacity and looking to hire, it is the natural moment to have this conversation. You are already turning work away, so a rate increase is low risk and high reward.
Other good times to raise your rates include when it has been more than 18 months since your last increase, when you experience a professional milestone like making partner or earning a certification, when your firm is acquired by or merges with another practice, or when you start bringing on staff. If you are expanding your team, your rates should reflect the increased overhead and the enhanced level of service your firm can now provide. For more on building the right team, take a look at Staffing Up: The Attorney’s Guide to Hiring Top Talent.
How Pricing Affects the Clients You Attract
Your pricing is more than a number on an invoice—it directly shapes the type of clients who walk through your door. Position yourself at the lowest end of the market, and you will attract the most fee-sensitive, difficult-to-work-with clients. These are the people most likely to argue your bill, question your advice, and limit what you can do on their case because they cannot fund it.
On the other hand, clients who are willing to pay higher rates understand they have options. They are choosing you specifically because they want a high-quality attorney. These clients tend to respect your time, follow your advice, and pay without argument. The best clients are almost always the ones who invest the most in their legal representation.
This is one reason why authentic marketing matters so much. When your marketing reflects your expertise and values, it naturally attracts clients who appreciate quality over bargain pricing.
A Rate Increase Success Story
I worked with a senior solo attorney who had a phenomenal reputation in his community but had not raised his rates in five or six years. He wanted to earn well in his final years before retirement and eventually move to a house he loved in the Oakland Hills. But he was miserable—roughly 30 percent of his clients were making his life difficult.
We made a significant rate increase—about a hundred dollars an hour for existing clients. For the clients he valued, he had personal conversations before the new rate went into effect. For the ones causing him grief, he simply sent a letter. Most of those difficult clients left on their own, which was exactly the point.
Within six months, his book of business was full again with clients who valued his work. He was happier than he had been in years. And a couple of years later, he retired and moved into that house in the Oakland Hills. That is the power of pricing with confidence.
What About Price Objections?
Here is something that might surprise you: price is not the number one reason clients choose a law firm. The biggest factor is whether they believe you can help solve their problem. Everything else is secondary. So when a prospective client says your competitor charges less, remember that a small difference in hourly rate is rarely the deciding factor. The intangibles—trust, expertise, responsiveness, reputation—carry far more weight.
And if you find that you are significantly higher than attorneys you consider your competition, consider the possibility that those attorneys are not actually your competition. Your real peers may be the ones charging at your level or above.
The Confidence Factor
One of the most powerful benefits of raising your rates is what it does for your mindset. Many attorneys deal with impostor syndrome—that nagging feeling that maybe they are not worth what they charge. A rate increase forces you to put yourself out there and ask the question: am I worth it?
When you raise your rates and your clients stay—and they almost always do—it is incredibly affirming. You feel valued. You feel confident. And that confidence makes it easier to raise your rates again the next year, creating a virtuous cycle of professional growth and financial reward.
Of course, the mental side of this is real. I have seen attorneys agree to raise their rate, only to quietly go back to their old rate two weeks later because it felt uncomfortable. That is why working with a coach can make all the difference—someone who helps you charge what you should be charging, not just what you are comfortable with. Getting out of your comfort zone is exactly how you grow.
Avoiding Common Pitfalls
While rate increases are almost always positive, they can go wrong if you swing too aggressively. I have seen attorneys try a 50 percent increase all at once and lose business rapidly because the jump simply did not make sense to their clients. Consistent, moderate annual increases are far more effective than dramatic leaps.
For existing clients, communicate the increase professionally and in advance. The clients you love deserve a personal conversation. New clients should simply see your updated rate—and ideally, you will not notice any change in your ability to retain them.
A Note on Fee Structures
It is worth noting that fee structures are evolving across the legal industry. Litigation practices tend to rely on hourly billing and contingency arrangements, while transactional work often lends itself to flat fees. Interestingly, we are seeing a growing trend toward hybrid models where firms offer a base level of services at a flat fee and bill additional work hourly. This gives clients pricing predictability while ensuring the firm is fairly compensated for complex or unexpected work.
Take the Next Step
Pricing is one of the most powerful levers you have for building a more profitable, enjoyable law practice. If you have not raised your rates recently, this is your sign to take a hard look at where you stand.
Want personalized guidance on your firm’s pricing strategy and overall growth? Schedule a strategy consultation with Law Firm Success Group to find out how our one-on-one coaching program can help you charge what you are worth, attract better clients, and build the firm you have always wanted.
For more practical insights on growing your law firm, tune in to the Lawyer Business Advantage podcast.