Large firms increase rates while offering big discounts
A survey published by the National Law Journal has reported that lawyer fees now go as high as $1,800 per hour, but that the general counsels of large businesses can insist on large discounts. comments powered by Disqus
The client demand for discounts has grown significantly since the financial crisis, and the proportion of their standard rates that law firms actually collect has dropped significantly.
Peer Monitor reported the ratio in the United States dropped from 92% in 2007 to 83.5% in 2013, and British firms have seen a similar decline.
It seems that firms have not adjusted their standard rates to accommodate the decline in demand or the new reality of outsourced document processing - “sticker prices” have increased by 2-3% every year - but firms give back almost all the gain by offering ever-greater discounts.