Why Competing on Price is Losing Strategy

Are you tempted to drop your rates to get more clients?  Jay Shepherd thinks that is a bad idea.

Jay Shepherd has a provocative blog called The Client Revolution.  Jay thinks "the way American business get legal help is broken."  He wants to fix it.

In a recent post, Why Competing on Price is  Losing Strategy he argues that your billing rate is a perception of value:

But lowering your prices in the hopes of capturing new business is self-defeating. You are sending a signal that your value is lower than it was. You are also sending a message that you're willing to compromise to get new business. And what will you compromise? Effort? Quality? Availability? Thoroughness? Reliability? Training?.

For Jay's more complete thoughts:  Why Competing on Price is  Losing Strategy.

- Peter H. Berge

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