Larry Bodine Law Marketing Blog
Pendulum Swings in Favor of Mid-size Law Firms
In a major shift, the economic pendulum has swung away from megafirms and in favor of regional and mid-sized firms, which can offer equally-good service at much lower rates.
True story from one of my own clients: a partner in a regional California law firm was listening to an executive from a semiconductor manufacturer complain about his current law firm. The client beefed that his 600-lawyer firm was charging him $950 per hour to perform routine corporate work, and his lawyer didn’t answer his phone calls. The regional firm partner mentioned that his maximum rate was $500 and that he returned all calls within 24 hours. The client changed law firms and it was a win-win for both client and lawyer.
This anecdote illustrates a larger trend in the legal profession: lawyers in smaller and mid-size firms are successfully luring away prize clients of large law firms.
“I have read a number of articles in recent weeks predicting it will be boutiques/locals/regionals that will do best in 2009-2010. Today, one of my clients, Reilly Pozner, www.rplaw.com, a litigation boutique of 21 lawyers, told me they are hiring another seven lawyers. They have been appointed by the bankruptcy court as national coordinating counsel for loss recovery for a Wall Street investment bank,” said Bob Weiss of Alyn-Weiss & Associates, Inc. in Denver, CO.
“In 2008 small and midsize firms increased their presence on corporate ‘short lists’ from 24.5% up to 38.2%. This is a staggering change!” said Michael Rynowecer of The BTI Consulting Group in
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Interesting analysis. It also brings up the issue of whether regionals are luring them due to pricing, and if so, whether pricing is currently viewed by clients as something that's negotiable -- a commodity that can be shopped. We'll see I suppose. Thx for this. --AC
Interesting analysis. It also brings up the issue of whether regionals are luring them due to pricing, and if so, whether pricing is currently viewed by clients as something that's negotiable -- a commodity that can be shopped. We'll see I suppose. Thx for this. --AC
This is exactly what is happening and all of us at the boutique firms that represent big clients are talking about, but probably less than we would like since we are having to spend so much time handling all our new clients. Not kidding!
Interesting article. It's true to say as well that this blooming period for mid-size lawfirms is not only an American phenomenom. I work at a lawfirm of the type in Argentina and we're also seeing a definite increase in the number of new clients.