Recession-Proofed Marketing for Attorneys

As the financial markets continue to struggle and the media continues to talk about a recession, marketing for attorneys based upon location can make sense in certain circumstances.  When I talk about marketing for attorneys based upon location, I am talking about marketing based upon efficiency and billing rates.  While it is practically taboo to promote one's legal services based solely on price or on lower billing rates, a firm not located on one of the Coasts or in one of the country's areas of pricey legal services can promote itself in terms of its efficiency and cost-effectiveness.

An October 13, 2008 article in the National Law Journal notes that many smaller and mid-sized law firms are hoping that the economic downturn in the U.S. will prompt clients to shift their work away from expensive New York City and large city law firms to smaller firms that are more reasonably priced.  For example, the article notes that Holme Roberts & Owen in Denver is picking up business from clients who are leaving more expensive firms in such places as the East Coast.

The upshot is that so-called "regional" firms have an opportunity to cash in by charging their full rates, which can be $250 to $300 less per hour than rates charged by firms on the East Coast.  My law firm in Salt Lake City, Parr Waddoups Brown Gee & Loveless, has long benefitted from charging "Salt Lake City rates" to large companies that are used to Los Angeles or New York billing rates.  This is a way to compete based upon location, without competing based upon price.  The key is for a regional or smaller law firm not to cut its rates, but to promote the quality of its services (i.e., comparable to or better than the services from larger firms) at its full billing rates.  Large clients are constantly amazed at the quality of legal services they receive from my law firm - at a fraction of the price charged by an East Coast or West Coast firm.  Yet my firm generally charges its full rates.

During and after this economic downturn, regional and smaller law firms should promote their excellent services as a "full-rate" opportunity that comes at a fraction of the cost.