Category Archives for "Pricing"

Mar 08

30% of the Market is Still Paying Too Much

By Michael Feit | Feit Consulting , Legal Information Trends , Pricing , Sole Provider , Vendors

“As a person who has watched this industry for over 17 years; it is amazing and frustrating to see that 30% of the market is still paying way too much.” -Michael Feit

Prices for Westlaw and Lexis grew astronomically from the late 90’s up until the 2008 due to usage growing so fast.  After 2008, 30% of the market said it cannot afford to cover the costs of online research – not being able to pass off the full costs to clients.

Some firms were successful in getting concessions from both Westlaw/Lexis. However, in 2010 the Sole Provider trend emerged. Many firms started to move forward and eliminate either Westlaw or Lexis.

Right now; 55% of large law firms have one or the other.  Of the 45% of firms that continue to have both Lexis and Westlaw, 20% have threatened to eliminate a vendor….or have eliminated a vendor but then took them back at best of market pricing.

Currently,  25-30% of market are still overpaying by greater than 50-100% of mid-market pricing (per Feit’s Benchmarks).  Is your firm getting the best market pricing?  Click here to get more information from our experts.

Jan 13

Billables: A Metric of the Modern Law Library

By Michael Feit | Benchmarking , Budgeting , Modern Law Library , Pricing

Seeking out new ways to (bill) financially support the library is a core element of the library modernization.  Feit Consulting’s research found that 94% of Libraries that deem themselves “modern” are billing for their time.

Billing for Library time and research services is an easy metric to illustrate use and ROI, if your firm has the necessary tools in place.

Here are 3 tips for how to implement appropriate billing practices.

  1.  Monthly Monitoring – You can work with Finance to obtain monthly reports.  These monthly reports allows one to see which attorneys are passing on costs or writing off your time.  This information provides talking points for conversations with attorneys, shedding light on which attorneys are billing and which are not.
  2. Highlight Expertise – For some, the title of librarian is not optimal for billing.  If the case, it could be time to change the billing title to analyst or senior analyst.  This provides an opportunity to dispel the librarian stereotype.  Many attorneys are not aware of the librarian credentials and subject expertise.  
  3. Create a Billing Structure – There are various ways billing can occur.  The Library’s time can be directly billed to usage.  Alternatively, the Library’s costs could be divided evenly amongst all attorneys. 

Billing time allows the Library to function like a business, and provides data for annual budget development.  If these conversations are not yet part of one’s annual budget development, it can feel uncomfortable at first but is necessary to becoming a Modern Library.

 

Nov 30

Is a 0% or 1% increase a good deal?

By Kate | Contract Negotiations , Pricing

This year more than ever, Thomson is approaching firms with 3, 4 or 5 year extensions in return for 0% or 1% increase. The messaging, “Extend now because your contract pricing is so good; you won’t be able to get these great pricing and terms when your contract is up.”

This is a red flag. If there is an offer for 0% or 1% increase, consider whether your current contract pricing and terms are fairly priced. If your firm or organization has not had a price adjustment since 2008, it is likely you are overpaying.

If indeed your pricing and terms were good in the eyes of the vendor, then it is likely they would wait and offer the standard 3% to 5% increase.

Consider having your contracts benchmarked by Feit Consulting to ensure best pricing and terms. Confidence in your pricing adds great value to the bottom line. Click here to connect with Feit about benchmarking your contracts this week.

Nov 21

Year-End Special Contract Renewal….Too Good to Be True?

By Kate | Contract Negotiations , Pricing

At this time of year, many firms and organizations are receiving special tidings (or offerings) from their legal information vendors. Perhaps it is a flat annual increase renewal. That may sound enticing but if you consider that your current contract may not have the best pricing and terms, does it make sense to renew it?

Westlaw, Lexis, Bloomberg, WK–virtually all your legal information vendors–provide bonuses and incentives to salespeople who can add incremental sales at the end of the year.

Vendors may offer year-end gifts that on the surface seem quite generous. The resulting variety of offers can be staggering but they can also be tricks. Your firm may be offered price breaks on new contracts, extensions on current deals, trial periods of new products, and the list goes on and on. There may be something hidden in these special tidings. If a vendor has proposed to extend your contract at the same price or slightly lower price, it is very possible your firm is already paying too much.

Be proactive this December! Get the gift you truly want. If you have a wish list, tell your vendor now; you just might get a deal you actually want. Confirm whether your legal information vendor’s latest offer truly is a good tiding; contact Feit Consulting to review and benchmark your pricing and terms.

Sep 21

Contract Red Flags

By Michael Feit | Contract Negotiations , Pricing

Contract negotiations are often not on your list of most fun things to do. It can be a long and drawn-out process. There are many red flags to be aware of when entering the negotiation process.

One is the option of a long-term deal. For some, it can seem ideal to lock in a price and put off the next round of negotiations even farther into the future. However, with rare exceptions, a long-term contract is among the worst paths a firm can choose, for several reasons. The first reason seems obvious: change. Technology and pricing are continuously changing. You wouldn’t buy a plan that kept you from upgrading your phone for five years, would you? The legal-information landscape is rapidly evolving, with exciting acquisitions and new companies/products emerging. These products will continue to pull away use and interest in Lexis and Westlaw. It is always possible that one change in the market could make another product irrelevant. And as Artificial Intelligence rapidly gains momentum, there is much to be seen. Generally, a longer contract benefits the vendor. For legal-information contracts, we always advise keeping the term to within your near- and long-term forecasts; generally, that is three years or fewer, unless you are receiving a truly exceptional deal.

Another red flag is the year-over-year increase. Consider what additional benefits you are receiving for an annual increase. Pay attention to the later-year increases, as these can often be higher than the first-to-second-year increase. Complacency or lack of diligence in managing information resources can have long-lasting unfavorable implications on both processes and costs, thereby hampering overall efficiency.

Another red flag are bundles. Bundling products together can be an advantage for some. However, for many, a new contract bundle may be hiding unnecessary products or content that the firm or organization doesn’t need. Take for instance the cable, internet and phone bundle: if cable companies realized a 35% increase in bundling these products, imagine the increases your legal-information vendors are receiving. Take a good look at the bundle being offered. It could be a great deal, or it might not, but in either case, it is worth investigating.

To learn more about the do’s and don’ts of legal-information contract negotiations, click here.

 

Sep 19

New Customers Are Treated Like Royalty

By Kate | Contract Negotiations , Pricing , White Papers

It is not unheard of for companies to offer sweet deals to lure in new customers. “Save $15 off your next Lyft or Uber ride”, only to look up the promotion and find out that you are not eligible because it is reserved for new customers.

Similarly, new customers of Lexis and Westlaw are enticed with great pricing, content sets, and contract terms. If your firm has been a long-time customer of either vendor and has not received recent price reductions, it is highly likely that your contracts are unfavorable.

Find out today how your firm’s contracts compare with the market. Feit Consulting offers contract benchmarking services and products, including our white paper, Optimizing Legal Information Pricing.