Though most attorneys prefer a one approach rate ,however the ever changing economic situations as well as changes in the intensity of legal services provided has made it imperative for attorneys to consider different factors while setting their legal service fees.  There are different forms of approaches that can be used in setting legal service fees and some of the commonest ones include; The contingency sliding scale tactic, The split fee tactic, The hourly sliding scale tactic, and the minimum fee tactic.

1.The minimum fee tactic is most suitable for legal cases such as uncontested divorce cases, and plaintiffs’ employment cases. In this situation, the attorney only accepts a non refundable retainer which is the minimum fee acceptable for such cases. The retainer is often replenished if the case exceeds the hourly rate, however in contingency cases, and where there is recovery, then the retainer is deducted from the attorney’s fee upon disbursement.

2.The Hourly sliding scale tactic involves a tactic in which the attorney bills a client for the first 100 hours of his service at a normal hourly rate , then the percentage of  charges levied on subsequent hours of legal services offered increases. Bigger clients often prefer this method of billing because they think the attorney becomes more efficient as the percentage of charges increases.

3.In the case of Split fee tactic, the client is charged at half of what obtains normally on hourly rates . In this situation , the half of the contingency fee is taken upon recovery. This is a tactic that is becoming more popular in litigations involving contractual obligations including the collection of debts and related issues. Corporate clients often prefer this mode of fees because they feel the attorney is sharing the risk involved in such litigations with them and the attorney is not getting a huge share out of the money recovered.

4.The contingency sliding scale traffic is not a static fee arrangement but it depends on the nature or kind of work done.  The fee might be low in situations where the attorney settles the case without filing a suit, the fees chargeable increases if a lawyer has to file a suit and the case goes to court. One other variation in this situation is that an attorney may charge his client base on recovery- the charges increase as the weight of recovery increases.

It is ideal for an attorney to understand retainers and other fees chargeable for legal services to have a better relationship with prospective clients

Many law firm proprietors still get themselves confused when it comes to setting their retainers and fees. Most attorneys do act of their irrational fear that raising their retainers fees above a certain level will make them lose their clients, while some do believe that  there should be a chance for bargaining and if some simple rules are followed, it will be ideal at the long run to follow some principles which will likely drive prices.
Understanding the price movement between supply and demand is the first step for an attorney to set your law firm’s retainers and fees. You need to know that more pressure are placed on prices especially when there is an increase in demand relative to supply.  The scarcity of your legal services will make more potential clients compete for your attention and  legal representation. An increase in law firm marketing and advertising for instance can drive the demand for your legal services  upwardly , while lack of such law firm marketing techniques may decrease the demand for your services.
The upward and downward trend movements of demands and supplies often make attorneys insecure about their rates, however you can beat these challenges by focusing your rates on three important factors which are; service buying trends, income of individual clients and then the scarcity of your legal services within your area of profession. One other factor you must consider is the fact that if your service demand is high compared to you inability to meet up with such demands then you can raise your fees. If your hourly rate is higher then you will need to work fewer hours to generate the same desired income level.
Setting your hourly rate is another factor you must consider when deciding your service rates. Having one hourly rate is most suitable for a law firm. You need to understand how you will negotiate with your clients before setting your hourly rates and you need to ask other attorneys about their charge rates within your geographical location before setting yours. There are basically two ways you can increase your hourly ways and charges in general. You can increase it across boards in which your potential clients and old clients are affected with the changes, if you are not comfortable with this arrangement, you can quote a new rate for your new clients and leave the old ones with the old fees and rate.

There are several types of retainers obtainable with law firms, however the commonest ones include; The full payment retainer, The partial payment retainer, and the Replenishing retainer. In cases involving full payment retainer, payments are paid in full and in advance. This form of payment agreement is imposed by an attorney when he feels that the client is a credit risk to his law firm{  for instance, criminal clients are often expected to pay in advance}.  This form of retainer is also used in flat fee matters which are often completed within a month{ for example, incorporation and company registration issues}.
The partial payment retainer arrangement involves a situation in which the attorney ask for part of the fee in advance { usually half of the whole agreed fees} and he balance due on completion of the legal case. This is the most suitable for more expensive and complicated jobs that will turn around in less than 60 days or 2 months. Immigration hearings and estate plans are some of the legal cases where this form of retainer fees is charged. One other advantage of this form of payment is that little invoicing is involved.
The replenishing retainer is most suitable for hourly legal services. It can be described as a form of deposit payments in which a lawyer accept some money for specific hours of a legal services that will be offered. They are payments made against future extra hours that will be spent on a case and the client replenishes the fees as the hours are exhausted but the case continues. The client is invoiced especially when he is exhausted and hasn’t been able to continue with the replenishing. Though the retainer in this case must be reasonable but must not be ridiculously small in such a way that your client takes your services for granted.
A replenishing retainer can be set right in a number of ways. The client for instance pays a retainer equal to the estimated hourly rate which will be billed within the next two months, and at the end of each month the client is invoiced. The retainer should be placed in escrow and you can subtract the invoice from the escrow account , indicating the remaining balance that will be paid. You need to attach statements that explains any extra charges or fees spent during the course of the legal case, and a statement indicating that the client will receive his balances after the settlement of the case.