Price policy
Why we do not have a price-list or how we set prices for our services?
The question of negotiating a fee for the consultant is the most difficult one since legal service unlike a commodity is based on trust and good personal relationships which can be hardly assessed.Unlike the majority of our colleagues we do not have a price list since it is completely useless and unpractical. In order to find out an approximate price for a certain service you will have to call our firm at least.
It is natural that the first question the client asks is that about the price. The answer is almost the same every time: it all depends on the complexity and specific character of a certain problem. This is the main criterion taken into consideration when setting the price of any service, the point illustrated in the art. 779 of the Russian Federation Civil Code.
Legal consulting is aimed at getting certain economic benefits for the client. It may range from a brief consultation up to the full support of a complex business project. It becomes obvious that the price will differ accordingly.
We consider it reasonable to describe the methods of setting prices for our services to help our potential clients define the approximate price of our services.
In any sphere of business, be that trade, building, manufacturing or services, there are certain market laws , according to which the price of a commodity, work, service is set on the basis of its self-cost plus the fee which makes the overall cost (Art. 779 the Russian Federation Civil Code).
When setting the price for a certain service we always explain to the client which points we took into consideration. In this case he has an opportunity to estimate its real market cost and not doubt our honesty. We are sure that it is openness, straightforwardness and frankness when negotiating the price that help establish mutual understanding with the client.
The cost of our service includes standard expenses (office rent, salary, telephone calls, expenditure for the collection, processing and copying of the information and documents, transport expenses etc.) At the same time, it is agreed that the client pays some other expenses which arise in the process of getting certain economic benefits and which are not included in the fee. They include the following:
1. Business trip expenses of our specialists if there is such a necessity (for instance, representation in court in another region, participation in negotiations, support of the client and the project)
2. Payment for government duty, fees, experts’ services (for instance, forensic examination). Such expenses are usually paid by the client directly to the expert body or the sum is added to the total cost of services rendered.
Our firm renders exclusive intellectual – analytical services which have an individual price. Given this as well as trust - based relationships with the client , the prices are negotiable, that is are set individually in every single case.
Our prices are compatible with those of our colleagues who have a leading position in the legal market of Yekaterinburg. Sometimes they are even lower. It is natural that the prices are defined by the market and their self-cost. Being businessmen our clients can count money and are well aware of what they need, what is profitable for them, whether the price is reasonable and how it reflects the quality of services.
We have already mentioned that we do not need to advertise ourselves since it is our clients who recommend us. In fact, it is because people trust us that they turn to our help and not because of our pricing. Smart people, and our clients are smart, evaluate the quality of services first and the price afterwards.
Drawing up a contract. The form of the contract
After setting the price for our services we sign up a contract with the client for rendering legal services. The terms of the contract depend on a concrete situation and the complexity of the problem.If the client wishes we are ready to prepare the Act of Services Rendered in the written form since our clients are our main priority.
Discounts and other benefits for our regular clients
A regular client is a person who has signed up an agreement with our firm for rendering regular legal services as well as organizations and businessmen whose interests were represented by our specialists in tax, power bodies and law-enforcement authorities, courts, as well as negotiations, disputes and conflicts with contractors.
A regular client has the following advantages:
1. 5-30% discounts on our services. The exact amount is negotiated with the client and depends on the complexity, marketing policy and specific nature of the problem.
2. Payment by credit and down payment.
3. Free brief consultations.
4. Giving advice on the phone, via e-mail.
5. Giving priority to the regular clients’ conflicts settlement.
6. Free mailshot of our brochures on the most up-to-date problems in the sphere of contract and tax law, articles in mass media and the Internet via e-mail to the clients.
7. Free (or with a considerable discount) attendance of seminars and master classes carried out by our firm.
8. Free mailshot of normative acts which the client is interested in. The same documents can be sent in the electronic format.
9. Access to the firm’s library containing books on law, which is situated in our office.
Registration of the services rendered and their price
All the services rendered by our firm are always registered in the Act of Services Rendered during a certain period of time. We draw it up at the end of each calendar month and give it to the client for him to approve it not later than the fifth day of the month following the record one. This helps the client to control the amount of services rendered, their contents, quality, which in the long run determines the price.Moreover, this Act is the only proper written document which serves as a proof of rendering certain services and paying expenses, the latter being essential for the tax calculation. According to the sub-clauses 14,15 clause 1 article 264 of the Tax Code of the Russian Federation expenses on legal, information, consulting services refer to other expenses, connected with production.
Acts registering agreements on rendering legal services for a long period of time according to the client’s wish are of current importance. In this case the client gets a wide range of services the amount of which is changed in the course of time depending on the client’s needs.
The Act of Services Rendered drawn up at the end of the month usually contains the following obligatory information:
1. A list of rendered services, their contents or a short description.
2. The date or the period of time when the service was rendered together with the total amount of services provided during the month.
3. The name and the surname of the specialists who took part in accomplishing the client’s task.
4. The price for a certain service and the total cost of the services rendered during the month.
5. The result of the service, draft of the contract, a written conclusion, presenting information in the electronic format etc.
6. Payment details.
7. Informing the client about the use of a simplified system of taxation which stipulates for the absence of the value-added tax in our prices.
The client gets two written copies of the Act of Services Rendered, signed on our behalf. It is delivered by courier, special delivery, registered letter, facsimilie, via e-mail (the original copy is also given to the client) or can be obtained right in our office.
Such forms of the client’s agreement with the terms of the contract as unilateral signing of the contract, constructive actions, for instance, full payment for the services fixed in the Act, agreement shown in correspondence are regarded equal to the signing of the contract by the client. Moreover, if the client does not state reasonable objections in the written form as well as claims against the amount, quality and cost of the services within 7-10 days from the moment of the Act delivery, it is supposed that he accepts them and should be paid for.
The rules of agreement on the terms of the Act are shown in the contracts, signed with the clients, and fully correspond to art. 438 of the Russian Federation Civil Code. Our experience proves this right since it contributes to the establishment of stable and steady relationships and excludes unnecessary arguments.
If the client has reasonable and justified objections against the Act of Services Rendered he must state the objections against the cost or quality of a certain service in the written form before the tenth day of the month following the record one.
In case of reasonable and justified objections and claims our firm undertakes to reduce the cost of a certain service rendered. This is possible thanks to a special approach described below.
Reduction of prices for services, complete/partial return of the fee
We have developed a special approach to reducing the price of our services, partial return of the fee and recovery of damages given the fact that clients may have objections against the quality of our services. It helps us avoid unnecessary arguments with our clients.In case of reasonable and justified objections and claims our firm undertakes to reduce the cost of a certain service rendered by at least 5-10%. This figure may be lower depending on a concrete situation. We are always ready to listen to our client’s objections and wishes, we never argue about trifles and, as a rule, agree to reduce the price if the claims are justified.
In case of the “traffic method of payment”, that is for the actually rendered services by the end of the calendar month, we apply such categories as “trust”, “reason”, “justice” etc. In spite of their subjective nature we find them quite relevant due to the trust-based character of our services.
In some exceptional cases when the client’s arguments concerning the quality of the service are extremely convincing we can consider it as the one provided for free or even give it as a bonus. We always try to build good, friendly, trust-based relationships with our clients. Being well aware of the fact that our clients’ recommendations are our most valuable capital and are essential for attracting new clients, we never argue with our clients!
And finally it is necessary to consider two main factors which can determine the return of the fee:
1. Lower cost of the service itself due to the justified claims against its quality.
2. The client’s decision not to use our services while it is being rendered or before that. The client has right to do so and get his money back (as a rule, this is a prepayment) except for the cost of actually rendered services and expenses.
ATTENTION: if the client thinks that the rendered service (the price of which was agreed on beforehand) is no more relevant for him or did not give the expected economic effect, or in other words he does not need it any longer, - all these can not be considered a basis for returning money due to the subjective nature of such an opinion. Since the service was rendered, it should be paid for. This is fair and legitimate.
Another question is the connection between the economic effect achieved for the client and the cost of the service. It is solved easily: the parties agree on it before rendering the service. We consider such approach to be reasonable.
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Specific character of our services
Price policy
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