Working across multiple spreadsheets at the same time can be a real headache. It’s easy to make mistakes when moving data around, it takes an age to find and compare information between different files, and things can get messy. Legal pricing teams face particularly unique pain points due to industry trends like increasing client demands and a shifting economy.

BigHand’s recent benchmark report revealed that 91% of firms surveyed increased prices over the past year, with 86% anticipating further hikes in the next 12 months. However, with the US economy on edge and already showing signs of slowing down, firms must prepare for the impact on the global market. The prospect of an economic downturn will be at the forefront of clients’ minds, and firms should anticipate client cost sensitivity when setting pricing strategies. 

To navigate this challenge, pricing teams must efficiently model pricing options and strategically manage resources to maximize profitability, especially as rising newly qualified (NQ) lawyer salaries add pressure to firms’ cost structures. However, legal pricing professionals know the limitations of Excel—tracking budgets and building reports is time-consuming and prone to user error. A key issue is the lack of reliable historical data due to fragmented processes. Drawing from legacy data is crucial for accurate pricing models and optimal resource allocation. 

By moving away from Excel and embracing advanced pricing tools, finance teams can proactively model around market trends and ensure the right resources are leveraged at the right cost throughout the matter lifecycle. A dedicated tech solution frees up time from day-to-day financial operations for more strategic input, benefiting you, your team, and the firm.

Our research also revealed that 48% of firms saw a rise in client demand to show investment value and, for legal pricing teams, the ability to track budgets is essential to meeting these expectations. However, relying on Excel alone presents significant challenges for pricing professionals. Without real-time visibility, pricing teams struggle to accurately track budgets, manage scope changes and provide clients with timely matter updates. 

Budget tracking leads to better matter management as it facilitates a more open platform for discussions with a client about budgets versus actual spending. With advanced matter pricing technology, pricing teams can access sophisticated dashboards that track actual profitability data on a real-time scale, which is simply impossible to achieve in Excel. 

This level of financial insight allows pricing teams to offer clients genuine financial transparency throughout a matter. The technology also helps track scope changes, ensuring you can proactively address potential overruns. Adopting specialized matter pricing tools supports the firm in meeting client pricing demands, ensuring competitive positioning, and maintaining optimal profitability.

As legal pricing professionals, you’ll know that lawyers often lack the financial acumen needed to make informed commercial decisions. Financial productivity expert and ex law firm Pricing Manager George Egford recently wrote how “cultivating a commercial mindset can only happen if lawyers are educated in and have access to financial insights”. In an era where clients demand more value-driven services, it's crucial for lawyers to understand the financial dynamics of their matters. 

However, the limitations of Excel can hinder this process. Its complexity often restricts access to vital financial data, leaving key stakeholders in the dark. We know full well that most lawyers don’t like using Excel, so alongside a rigid training plan, lawyers can adopt a more friendly interface that can have a huge impact on their pricing and budgeting requirements. 

By adopting the right tools, lawyers can track budgets in real-time and make data-driven decisions, building their commercial acumen in the process. For finance teams, this translates to fewer bottlenecks and a more streamlined pricing process. With lawyers better equipped to engage in pricing discussions, you'll find it easier to align strategies with profitability goals and implement value-based pricing models more smoothly.

Don’t get left behind with outdated methods. To discover more about how to streamline your pricing and budgeting process, take a closer look at BigHand Matter Pricing.