October 3, 2025

Value-Based Pricing That Creates Outrageous Profits

Jan Roos had me on the Law Firm Growth Podcast to talk about a bunch of pricing topics, including a dark diversion into how to value price a custody battle (not that I’m saying you should!)

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AI Summary

This episode of the Law Firm Growth Podcast delves into value-based pricing strategies with guest Jonathan Stark, a pricing consultant with a background in software development. The discussion explores the concept of transitioning law firms from traditional hourly billing to value-based pricing, emphasizing the alignment of financial incentives between clients and firms. Stark shares insights from his journey, explaining how he realized the drawbacks of hourly billing and how it could misalign incentives. He outlines three methods for setting fixed prices: value pricing per engagement, productized services, and selling products, explaining the benefits and challenges of each. Stark also shares practical advice on avoiding common pitfalls, understanding client value, and effectively implementing value-based pricing. The episode covers real-world examples, including family law scenarios, and highlights the importance of specialization and presenting unique value propositions to clients.

Chapters

(00:29) - Meet Jonathan Stark: Pricing Consultant
(01:09) - The Problem with Hourly Billing
(02:19) - Transitioning to Fixed Pricing
(03:47) - Value-Based Pricing Explained
(07:04) - Challenges in Legal Pricing Models
(10:15) - Strategies for Setting Prices
(14:40) - Different Pricing Models
(19:19) - Scaling and Profitability
(20:34) - Understanding the Concept of Scaling in Business
(21:07) - The Benefits of Moving Away from Hourly Billing
(21:46) - The Importance of Differentiation and Monopoly Positioning
(23:18) - Introducing the Max Price Formula
(25:50) - Transitioning to a Value-Based Pricing Model
(28:50) - Common Pitfalls in Value-Based Selling
(31:56) - The Why Conversation: Understanding Client Value
(32:37) - Setting Prices Based on Client Value
(37:40) - Final Thoughts and Resources

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Also, please let Jan know you dug it on his LinkedIn so he doesn’t think I’m a dud guest ;-)

Jan Roos on LinkedIn

TIA!

Yours,

—J