Do you know what your firm’s Average Selling Price is?

At Kmart they know that the average selling price of a product is around $7 – as random as that may sound, knowing data like that is gold.

Why?

Well in law firm world, if you want to:

1. win an ego contest, tell everyone what your hourly rack-rate is;
2. stay in business, know what your, and your team’s, Average Realised Rate.

Because your costs calculated against a rack-rate is monopoly money – but costs calculated against your ARR might just help you pay out some bonuses this year!

As usual, comments are my own.

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