Another Problem with Under Billing

So a primary problem with under billing clients is obvious: you lawyer are earning less money for your firm and your family. But that’s just one of many potential problems that often starts in moments of weakness when you think…aw, I kinda feel bad for this persons struggles and you give them a $$ break.

Don’t do it! Don’t do it! Don’t do it! Don’t do it! Don’t do it! and did I mention: Don’t do it!

Here’s another negative I’ve observed in yours truly in a case or two where I should not have under billed and I only ended up hurting myself.

It’s a bit of a self-fulfilling prophecy and really a vicious circle where I’ve caused myself to under-perform and lower my standards as an attorney. It goes something like this…

You take on client X perhaps due to a healthy degree of human empathy due to client’s difficult circumstances, often both legal and financial. And perhaps you take a smaller retainer than you should and you charge a lower hourly rate than you should. I don’t think the lower hourly has to kill ya but the lower retainer is poor judgment. But it’s what I’ve seen happen next that’s the real killer. Because you want to “keep the bill down” for the poor client you sort of “under work” the case. And speaking about a time or two in my own practice I’m surely not saying I was at the level of ignoring the case or being at a level were the ARDC might come calling. But instead of say regular “A+” work I was doing “B” level work to keep the bill down. But, when the case doesn’t go just like the poor, sympathetic client wants it to go, he/she is just as unhappy as the well-heeled client whom you gave the A+ service too.

And the inevitable result is a client who you’ve under-billed and who is now unhappy and who likely will be under-paying and you’re unsatisfied because you didn’t do your best work and you’re now both underpaid and under-appreciated.