Price High or Low

Price High or Low is an app that can assists in the task of considering and weighing the various factors that may impact the fixed price quoted to a client.

What is Price High or Low?

An app to assist with determining price.

What type of technology?

Mobile App

Vendor

Barolsky Advisors Pty Ltd

Country of origin

Australia

Similar tech products

Nil

Non-tech alternatives

Analysing previous similar files and determing factors that impact on value/price

A Pricing or Value Council/Committee

More information

Apple App Store

Which practitioners would find this technology useful?

Partners and senior lawyers looking for assistance with determining their fixed prices

How does it work?

Price High or Low is an app that can assists in the task of considering and weighting the various factors that may impact the fixed price quoted to a client.  Practitioners begin by entering their initial suggested number which forms the baseline.  The app provides no assisting in choosing this initial number but, by way of a baseline, practitioners should probably pick the price they would charge a client on the basis of “all things being equal” and the matter going perfectly according to plan.

Practitioners then work their way through a series of criteria: in each case setting where on the spectrum this particular and client sits and also the weight that should be given to the criteria.  Criteria are things like:

  • Risk of cost blowout, overun or write-off.
  • Risk of scope creep.
  • Is the client a pain to deal with?
  • Do we have spare capacity in our team?
  • Client’s price sensitivity.
  • Financial impact of the project on the client.

The criteria are divided into categories such as costs and constraints, risks to our firm/practice, our capacity to sell & deliver and client perceptions and needs.

The criteria are fully tailorable in that over 50 different considerations can be switched on or off, depending on their relevance to the particular matter.  Bespoke criteria can also be added.

As the settings for each criteria are inputted, the initial price is adjusted accordingly.  Ultimately, the combined net effect of all the criteria and weightings is then results in a price increase or a decrease from the original baseline.   This can provide a guide to practitioners as to whether their baseline needs to be increased or decreased to factor in the relevant criteria specific to that matter.  The price and the criteria settings can then be saved and shared, such as via an email with a pdf of the different inputted settings.

Benefits

A core benefit of the app is in reminding practitioners of the numerous elements to take into account when determining what price to quote a client.  However, perhaps even more importantly, the app requires practitioners to actually go through the exercise of considering the extent to which each element might impact on both the firm’s inputs in doing work but also the value of the firm’s outputs to the client.  Setting fixed prices, other than via an estimate of the labour input time, can be a challenging exercise without clear reference points on which to move the proposed price up or down.  Price High or Law provides some of those reference points.

Additionally, by saving the report, practitioners also have a record by which to assess, at the conclusion of a matter, what elements of their pricing criteria were accurate and what were wrong.  Over time, practitioners could also build up a data bank of criteria for different clients and matters.

Risks

Price High Or Low is only a guide in how to adjust a baseline price.  It is generic and requires the subjective assessment of the practitioner to set each criteria and weight those criteria.  It is not a price setting tool nor is it appropriate to use in all settings.

Downsides

The app is currently quite basic in functionality.  Once a pricing is completed, it can be saved or sent as a pdf but there is otherwise no ability to work with the criteria settings, such as by uploading the data to a table or a graph.  Being able to sort entries by matter or task type would also be useful.  Being able to retain a collation of all data inputs and even collating that data across other users could provide very useful data for firms in comparing assessments.  Hopefully, in time, the app may be developed and further functionality added in order to make it an even more useful pricing tool.