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Magic circle hourly rates drop by third as clients flex muscles

When one talks of hourly rates discounted down to "only" some £400 an hour i am reminded of a sale in a ( maybe ) cutting edge designer shop when the 40% reduced label still leaves you reeling for a stiff drink because the original price was so extortionate. What must Joe Public think? What must the local Conveyancing solicitor think? No wonder city lawyers only have Bankers and Estate Agents to talk to in the kitchen at parties ( mind you the conversation still starts off the same as it did years ago ..." Do you know how much my house is worth according to our neighbours ?"). How are the fees justified other than in the most specialist areas and everyone knows, at the lower level of qualification , it is even worse. Paying over £200 an hour to have a NQ learn " on the job" ( so to speak ) at the client's expense ( literally ) and have his or her work checked by a partner - who also charges the client if they can - is obscene. How long can it go on? . In the meantime lawyers who earn 35% plus profit margins on normal charge out rates in the City can afford to buy in some work and keep their staff busy and it would be amazing if they did not do so. The real story though is the embarassing greed that seeks to jusify " rack" rates in the first place. it is not the real world. Thank goodness.

21-Sep-2009

5:25 pm