Expert Witness Services What You Need To Know
What is the amount I should charge for my expert witness services? It's an important question that will determine the success of your consulting practice.
You can establish competitive pricing levels in several ways. Discretely conducting some research to find out what other experts are charging is one way of doing so. Since experts have to disclose their rates as part of their equivalent reports or Rule 26, another way is to review pertinent court records.
It is likely you might find some reference books useful when you are creating your rate structure.
Here are five tips that will be helpful in preparing for a competitive rate card now that you have a better sense on how to set your hourly rate:
Why you should get it in writing. When you start, use a letter of engagement that will clearly identify your rates and business terms. You want to be entirely clear on how and when you will get paid.
Establish a minimum. In order for you to focus on every new case, you have to set all your other work aside regardless of the job size. Consider setting a 5 or 10 hour minimum for smaller jobs. Reimbursing you for the value you provide to your client is this policy.
Ask for a retainer. You can insure payment by asking for a retainer that gets replenished as funds are drawn down over the course of your assignment.
Implement a cancellation fee. Settling out of court is a vast majority of cases which is why you could easily see yourself with holes in your calendar where you once had billable hour commitments for court testimony or depositions. It is likely your cancellation fee may vary due to the degree of notice that you receive. For example, perhaps there is no penalty for cancellation 10 days prior to an engagement, but a 50% fee for cancellation 48 hours in advance.
Review your rates. An annual rate increase is a fairly common business practice. Take a look at your rates every December and update your rate card as of January 1st of every year. Considered as the general rule of thumb is having some room to increase your rates if none of your clients complains about them. Higher rates could be tested on your new clients.
Keep in mind that you are paid for your knowledge and not your testimony. Price and bill accordingly.
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