Strategic Rate Design for Managing Partners in 2026

Strategic Rate Design for Managing Partners in 2026

An article by Mark Medice, Principal at LawVision, highlights research from the 2025 LawVision Strategic Pricing Survey showing a fundamental gap in law firm pricing strategy and that law firms must treat rate design as a leadership priority.

According to the survey, three out of four partners are unaware of their fair value, and more than half lack a clear understanding of how pricing relates to profitability. Despite strong rate growth in 2025, nearly three-quarters of firms reported increases above six percent; the economic landscape for 2026 suggests uneven demand. Regulatory, trade, and litigation practices remain strong, while transactional practices face continued pressure. With the current decade-long rate cycle approaching maturity, firms must adopt new approaches to pricing.

Medice emphasizes that rate design is no longer a back-office concern but a leadership-level priority. Anchoring rates to fair market value through rigorous benchmarking is essential to avoid both undervaluing services and pricing beyond what clients recognize as reasonable. Equally critical is creating frameworks that partners can understand and apply consistently, ensuring firmwide adoption and client trust.

Looking ahead, firms must avoid static pricing models. As Medice notes, frozen rates quietly erode profits while competitors secure compounding advantages. Differentiating premium practices with rates that reflect their market value not only protects margins but also reinforces the firm’s reputation for expertise. Finally, equipping lawyers with practical tools, from conversation scripts to pricing guides, empowers them to confidently advocate for the firm’s value.