Home -> Law Blog Directory -> Practice Management Blogs -> More Partner Income

Practice Management

: More Partner Income

RFP's: A Necessary Evil

By BoYancey

As we?re all aware, in today?s economic climate there is a big focus on cost reduction. It?s no surprise, then, that RFP?s are being used with even greater frequency by purchasers of legal services. The concept is not new, but the extreme focus on price across a large percentage of those companies probably is. For law firms, this is not a happy consequence. Law firms incur significant expense by simply responding to RFP?s, with no guarantee of work at the end of the process. Of course, a primary reason for companies using RFP?s to begin with is to get the lowest price across all parties?which means that the ?winner? of the RFP may not be getting profitable work. In an RFP process, it?s not a guarantee that the lowest price will get the business, but it?s nearly certain that ?bidders? with pricing substantially above the lowest prices will be eliminated quickly from consideration. It?s useful for law firms to have a framework around which to operate when responding to RFP?s. The numbers and margins can vary by geography, by area of law, or by the scale of the engagement, but specific parameters must be kept in mind and applied. Questions that must be answered to help shape the context of any response include: Please click the post title to continue reading at morepartnerincome.net!

Full post as published by More Partner Income on March 06, 2009 (boomark / email).