I’m a big fan of flat fees. We’ve talked about that many times before. Whether you’re using fixed fees or hourly billing, the issue of pricing is a constant concern. We’re always wondering whether we’re charging too much or (gasp!) too little.

How can you determine whether the price is right?

It’s tough to know whether you’re doing it right, but here are three clues.

1. If you quote the fee and the client readily hires you and immediately pays, then you’re probably charging less than you should.

2. If you quote the fee and the client stands up, storms out, and never comes back, then you’re probably charging more than you should.

3. If you quote the fee and the client hesitates, goes home and thinks about it, calls back with questions, and consults with a few friends and possibly another attorney, then you’re probably getting it right.

You don’t want to be the bargain-basement attorney. And you don’t want to charge so much that you never get a client. Getting it right will create a bit of stress for you as you wait for potential clients to conclude that you’re the attorney they need and that you’re charging a reasonable fee. The waiting and the stress are important parts of being sure you’ve got it right.

Of course, not every transaction will pan out as I’ve described. Some people will–no matter how high the fee—hire you immediately. Others will–regardless of how low the fee–refuse to hire you. But, on average, my formula will give you the feedback you need to be sure you’re getting it right.