Thursday, 30 December 2010

Who are our competitors - and which worry us?

As "High Street" solicitors, who tend to handle local work for local people, it might be thought that our main competitors are other, similar "High Street" solicitors - I think not

Although there is competition between us and other local firms, we do not see them as an existential threat (oooh! Big words!) On the whole, they tend to have the same philosophy of business as us: do a good job, at a reasonable price, resulting in a satisfied client and a good reputation and more referral business.

To date, a bigger threat has come from those firms, big and small, that indulge in cut-price conveyancing: always ready to undercut the competition - after all, it must be better to discount by (another) £50 and get the work than not, right? Wrong! Cut price conveyancing is bad for everyone involved - even those paying full price further up or down the chain of transactions - as it leads to a "stack it high and sell it cheap" approach, which quickly becomes de-personalised (commoditised) and inefficient. A similar problem results from conveyancers who pay referral fees to buy in work - but that's for another blogpost.

However, a bigger threat still is nearly upon us: "Alternative Business Structures" in the jargoin of the regulators and, especially, non-lawyers being allowed to do conveyancing work for profit. The real threat - to existing practices - is that some big organisations - insurers, "service commoditisers", mortgage lenders, etc, will offer conveyancing services. Not only will they be the ultimate in "pile it high and sell it cheap" but they will have the resources to put in place systems that will far outstrip even the "warehouse conveyancers" of today.

Worst of all, many of them - mortgage lenders are the obvious example - will be able in effect to offer the conveyancing for free: either bundling the cost in with the overall mortgage loan or treating it as a loss leader to get and retain the lending business - and the associated financial services, where lots of money can be made.

How to compete? Well, trying to beat them at their own game will not work, as I simply do not have the financial resources. In order to compete, I need to sell my services to clients on the basis of value for money - not cheapness; genuine efficiency - not artificial busy-ness; local, useful knowledge - not a tick-box approach; and genuine approachability - not slick advertising.

That is why I -
  • offer a money-back guarantee
  • constantly update my office procedures and support IT
  • am closely involved in my local community
  • encourage clients to drop in to my office, without appointments, to speak to my conveyancing managers about anything that concerns them: if it is a legal issue, it will be referred to a lawyer, but for procedural or incidental queries, my managers are well able to cope

Wednesday, 29 December 2010

Free e-books and audio books

My sources for free e-books and audiobooks are -

Project Gutenberg:

Google E-bookstore

Internet Archive

Open Library

Many Books

LibriVox (audiobooks)

Can anyone suggest any more?

PS: I omitted one of my favourites: Memoware

Wednesday, 22 December 2010

New conveyancing protocol

According to Clutton Cox, they were one of only 12 firms to respond to the consultation by the Law Society on its new conveyancing protocol: http://goo.gl/uhpYh

As I also responded, that means only 10 others throughout the country did - what a disappointment

What is also disappointing is that the Law Society has not included in the scheme a requirement for member firms to (for instance) adopt the Law Society's Code for Completion by Post - and a lot do not seem to know what the Code says, but decline to adopt it anyway - nor to update their repetitive raft of property information forms so as to produce a single, well-drafted form for clients to complete

Instead, they are duplicating some of the supervisory functions of the Solicitors Regulation Authority and concentrating on telling lenders, insurers and anyone that will listen that a good conveyancer should be part of the scheme - despite the fact that it is only open to solicitors, not licensed conveyancers. Presumably this is to get lenders and insurers to insist on firms joining if they are to be on lenders' panels and get insurance cover, thus ensuring jobs for those at the Law Society with no improvement in efficiency or protection for the benefit of clients

Ahhh! What it is to be so cynical!

Tuesday, 21 December 2010

Turmoil for the legal profession

The legal profession is undergoing a period of change and review more far-reaching than anything it has experienced before. The following consultations (which will lead to change) and already decided changes are under way (thanks to Rob Hailstone of the Bold Group for drawing all this together) -

SRA Consultations: The new SRA Handbook: This consultation is the last opportunity for comments on the SRA's new Handbook which will underpin the regulation of solicitors and law firms from October 2011. This paper provides more detail on the regulatory framework for both traditional law firms and Alternative Business Structures. Ends - 13 January 2011

Future Client Financial Protection arrangements: Comments are invited on proposals for amendments to client financial protection arrangements from October 2011. These proposals follow on from the independent review of the current client financial protection arrangements undertaken for us by Charles River Associates. Ends - 28 February 2011

Sole Practice: Modernising Authorisation: The proposal is to bring the process for authorising sole practitioner law firms in line with the way in which all other firms will be authorised. Ends—8 March 2011

Legal Services Board Consultations: Referral fees, referral arrangements and fee sharing: Ends – 22nd December 2010

ABS (Alternative Business Structures for providing legal services) consultation - Further rules regarding licensed bodies: Ends - 21st February 2011

Ministry of Justice PII: Proposals for the Reform of Legal Aid in England and Wales: This consultation seeks views on proposals for reform of legal aid in England and Wales. One option is to use client account interest to help bolster the Legal Aid Fund. Ends – 14th February 2011

The Law Society PII Guide: The fourth edition of Insurance Matters, a free bulletin on solicitors' professional indemnity insurance (PII), can be downloaded: http://www.lawsociety.org.uk/new/documents/2010/insurancematters4.pdf - It includes articles on the outcome of the 2010 renewal process, conveyancing fraud, and risk management.

Changes to the CML Lenders' Handbook
The Council of Mortgage Lenders updated the Lenders' Handbook on 1 December: The changes affecting solicitors include:
• new requirements where the solicitor acting for the lender is not familiar with the seller's solicitors
• lenders can stipulate whether they require notification of the name and address of the sellers
http://www.cml.org.uk/cml/handbook/amendments

Lawyers need to be ready for this future. Whether it is an improvement remains to be seen

Thursday, 2 December 2010

Deep and crisp and even

I cannot let the snowfall pass without at least one blog

There was plenty of snow overnight, resulting in a good 5 or 6 inches on the ground this morning. Though the side roads have been ploughed overnight, I do not expect any of my staff who drive to work to get in. That leaves Anne (my wife and office manager) and me, who both walk to work, to staff the office today.

That's not a problem: with no post or Document Exchange deliveries (it's the snow, you know), we are only dealing with phone calls and emails - and catching up on "back office" stuff such as planning my new website - details soon - and revising my terms of business

However, I was a tad upset when Anne commented, "It's lucky we can walk to work" - It's not luck: we planned for this; it's why we moved office from Cranbrook to Tenterden: so we do not have to use the car daily and so we can walk to work!

I love it when a plan comes together - but I'm looking forward to things getting back to normal

Wednesday, 1 December 2010

A word of warning

Negotiating on legal fees - a word of warning.

For the lawyer, the actual fees are only a small part of the relationship. More important, usually, is the lawyer's perception of the value the client places on his or her services. If the lawyer feels undervalued, they will be demotivated and therefore less efficient.

Don't negotiate resentment into the relationship!