Tag Archives for " price correction "

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.

The Power of a Successful Contract Negotiation

By Michael Feit | Contract Negotiations , White Papers

Contract negotiations not only set product/vendor pricing for the next contracted term, but can also determine the pricing path your firm will be on for years after. We all know the story–3-5% increases year over year. Once you lock in at a price and terms, this becomes your new baseline for future negotiations. Vendors will only want to increase over your current price.

Not to fear, price corrections can be made at your next contract negotiations. Feit Consulting sees about 15-20% of the large law firm market paying substantially higher than the market mid-point. Firms that fall into this category won’t be able to reach the market mid-point in one contract cycle; it could take several cycles to price-correct.

There are two secrets to securing optimal pricing in your next legal information contract negotiations: planning and market knowledge.

Allocating enough time to plan for negotiations is one element. Waiting until close to contract expiration is one of the worst mistakes a firm can make. Start the process early. Market knowledge is the other essential tool for achieving optimal results in the negotiation process. This allows one to gauge whether your firm’s current contracts are on par with the market, or above or below. Having this intel affects your leverage in negotiations. Due to secret pricing, no one firm can truly know whether their contract is exceptional or fair without outside knowledge.

Get the tools you need NOW in order to successfully negotiate and optimize your firm’s legal information resources and pricing. Working with a consultant is one option to obtain the market knowledge for benchmarking your firm’s contracts. Another option is Feit Consulting’s Optimizing Legal Information Pricing. Learn more here.

Secret Pricing Published

By Michael Feit | Pricing , White Papers

With 15-25% of the law firm market substantially overpaying for Lexis or Westlaw, Feit Consulting seeks to empower law firms with the knowledge necessary to achieve reasonable and mutually beneficial pricing. For too long, pricing has been kept secret. No firm knows whether their contract is truly “excellent”, which the vendors often claim with each new renewal.

Until now, only Feit’s clients received this intel. In our next white paper, Optimizing Legal Information Pricing, Feit Consulting will be disseminating our benchmarks on what is reasonable pricing historically, current, and projected, with supporting data and rationale.

Why share this privy information? By publishing our unique market view, firms that are trapped in bad contracts will obtain the necessary context to take the first step towards corrected pricing. Having this market knowledge is only one element to achieving successful contract negotiations. Feit Consulting is here to advise firms at all stages of vendor contract negotiations and overall legal information strategy.

Act now! Have up to five of your firm’s legal information contracts benchmarked against our data. Sign up here.

Tough Choices: Navigating Difficult Decisions in the Legal Information Market 

By Michael Feit | Contract Negotiations , Sole Provider , White Papers

Achieving optimal results in legal information management and costs requires tough decisions. The decisions may be small, as to which content or products to keep, or grand, like the consideration of eliminating or flipping a vendor.

When a library audit is completed, it may become apparent that retaining a resource that is rarely used is not worth the costs. However, on the flip side this could upset the 1 or 2 people who do utilize it. If deleted, an alternative option may be as simple as a different product, or it could be more time spent by accessing a local law library.

Another difficult choice is the decision of whether to eliminate Lexis or Westlaw (for firms who currently retain both) or to flip to the alternative (for firms who currently retain only Lexis or only Westlaw). In either instance, this is a complex change-management process. The downsides include a lengthy process from start to finish, the amount of time necessary within the process by key personnel to execute, and the general adversity by many towards change. The upsides: the process forces a firm to really review each and every resource–how they are used and the value they bring, substantial savings with available funds to purchase more complementary resources, and price correction. To correct the pricing path your firm has been on, the firm might need to eliminate a vendor for a short period of time or indefinitely. If your firm has been with a vendor for a while, flipping to a new vendor may present the best outcome.

Feit Consulting’s Legal Information Market Trends Series addresses the questions and concerns facing law firm administrators. Each report is a tool that offers guidance and insight with supporting data from interviews and/or surveys. Learn more about these tools here.