Volume Discounts
The preferred reset date for volume discounts.
What is January 1?
The final billed amount if worked $50K and fixed fee is $60K.
What is $60K?
These arrangements align ____ of the firm and client.
What are incentives?
Blended rates are generally calculated by factoring in rates and _____
What is % of work (from each TK)?
Client type that deferrals are most commonly used for
What is a start-up?
The typical number of tiers
What is 4-6?
The final billed amount if actually worked $70K and fixed fee is $60K.
What is $60K?
Success fees only have one instance of success they are based on. True / False
What is false?
Blended rates are usually used when then firm can push work to ______
What are lower cost resources?
The subgroup that as a preapproved ability to offer a 25K deferral amount.
What is ECVC?
While AFAs and hourly matters all count towards the volume, only these arrangements receive the benefit of the volume discount.
What are hourly matters?
The final billed amount if worked $70K and cap of $50K.
What is $50K?
The most important item with success fees is how ____ is defined.
What is success?
The benefit to the client for blended rates
What is "get some resources for cheap" or "ease of administration" (less rates to factor in)?
Deferrals mean we are doing free work for client true/ false.
False - deferring the requirement for the client to pay, but they do indeed still need to pay.
The volume is typically based on these fees.
(hint: think of the profitability waterfall)
The final billed amount if worked $40K and cap of $50K.
What is $40K?
Two variations of how the amount of the success fee is determined.
- pre-determined lump sum
- % of fees incurred or
- % of damages / recovery / savings
2 variations on the blended rate
- Matter level (all TKs one rate)
- One rate per title
- One rate for attys vs one rate for non attys
The Le[a]d better initiative is meant to benefit clients with what characteristic.
What is owned / or in a sr exec role?
The hoped for benefit to the firm
What is "the client will send us more work"?
When proposing a fixed fee and a capped fee for the same piece of work, the [insert] should be higher than the [insert] proposal.
What is "the cap should be higher than the fixed fee"?
An AFA that success fees can be coupled with.
What is fixed or flat fee?
A reason some people might not consider blended rates an AFA
A reason we might offer (or be asked to provide) a "get up to speed credit"
- Client transitioning firms
- Perkins transitioning timekeepers