In recent findings, a significant number of conveyancing firms have been highlighted for their lack of clear pricing policies.
According to research conducted by Shaun Jardine of Big Yellow Penguin consultancy, almost half of conveyancing firms do not consistently adhere to pricing policies that are ‘clearly defined, understood, communicated and adhered to’. This survey, involving 68 firms, underscores the importance of having pricing strategies that are transparent and well managed.
Jardine emphasised during a Bold Legal Group (BLG) webinar the need for staff to comprehend their firm’s pricing policies, drawing analogies from retail sectors where pricing is meticulously controlled. ‘The prices at Sainsbury’s are not defined by the people stacking the shelves. They’re managed very carefully. Lawyers are not very good at doing that,’ he stated, suggesting the legal sector needs to enhance its approach to pricing management.
There was a notable decline from 63% to 54% of firms consistently operating under a firm pricing policy, while a further 38% acknowledged having such policies ‘to some extent’. Meanwhile, referral fees remain a common practice with 53% of firms participating, an increase from the previous year’s 49%.
Peter Ambrose, CEO of Surrey-based firm The Partnership, revealed that a substantial portion of their workload derives from estate agents, with referral fees usually set at around £100 to £150. However, the notion of introducing tiered service levels, such as bronze, silver, and gold, received a lukewarm response, with 49% opposing the concept despite the potential training required.
‘People will say all our clients need a gold service. No, they don’t. They need a competent service,’ Jardine noted, advocating for clients to choose services based on pricing tiers. He further advised against letting individuals who are ‘bad at pricing, price.’ In his view, pricing needs monthly evaluation and should be adjusted to control workload effectively.
Contrasting perspectives emerged, with Ambrose viewing tiered pricing as challenging and instituting a ‘sub-brand’ for higher-value services to maintain uniform pricing structures. Additionally, the majority of firms maintained that they should discontinue services for clients deemed ‘too painful and/or unprofitable’.
The survey also highlighted a positive trend regarding job satisfaction, as the percentage of conveyancers considering leaving the profession decreased by 10% to 42%. Rob Hailstone of the BLG stressed the significance of appropriate pricing for service quality, financial health, and the mental well-being of conveyancers.
Despite these challenges, there is a growing optimism regarding the conveyancing market’s future, with predictions of increased activity in the coming year rising from 21% to nearly 30%.
This research highlights the urgent need for the conveyancing sector to re-evaluate its pricing strategies, ensuring clarity and consistency to better serve both clients and practitioners.
