Take the fight to the retailers
One element of the QualitySolicitors launch that struck me was the move into shopping centre retail space. Considered alongside the recent research Shopping Around, by Jon Robins at Jures, that move might appear obvious for general practice firms. Legal services are highly profitable, with complex people businesses needing face-to-face contact to work well and – in some legal areas – a high volume of enquiries.
The shopping ‘high street’ has moved in most cities; and it could be said that solicitors firms got left behind. Where better to develop a business than in a high ‘footfall’ retail environment?
It has been tried before in many forms. Firms, usually by chance, end up with a shop front on a busy retail street. However, in Marketlaw’s collective experience, very few firms have used their position effectively to increase business. Even fewer have reorganised to present a clear retail offering.
Saturday and late night opening is another option that, for many reasons, is usually abandoned after a few months.
As you’ll be aware, ‘retail’ is a very different business from professional services and both have changed considerably in recent years. One innovation that’s arrived from the US may provide a flexible opportunity to exploit high cost retail space. I recently came across an example of this in a shopping centre with a large supermarket and what are referred to as concourse retail merchandising units (RMUs). Two of them offered legal services, one a will-writing service, the other a full service local solicitors’ firm.
While a retail outlet offers a great opportunity to develop a firm, it requires a very different approach to the office-based solicitors’ set-up. It needs well-prepared staff with a robust approach to dealing with the general public. There should be a focus on looking for the right type of client for the firm, using a system of capturing and monitoring enquiry and client details. This would help establish the return on investment and an evaluation of different retail positions.
Those working on RMUs also need the ability to deal with general legal ‘chat’, a polite way of dealing with people with protracted legal issues, and an established procedure of where to recommend that people go if your firm can’t help.
One thing it can’t be is a short-term effort, tried for a few weeks and given up as too expensive. As applies with Saturday opening, it needs to be run with clear goals over a minimum period of a year to 18 months. That gives it time to be established in the minds of the potential clients.
It’s worth remembering that shoppers standing at a Co-op check-out should see a ‘Legal Service’ leaflet in front of them. This could be an opportunity for your firm to take the retail fight to the heart of the modern retail environment.
Comments
Competition
Retail space is too expensive. Opening late or at weekends adds to cost. Cost can be controlled by emoting paralegals and by reducing fees but that doesn't increase profit.
On my High Street there are banks, building societies, accountants, shops, restaurants and cafes. People go shopping on my High Street. People work on my High Street.
Maybe there will be changes bit people seem to like leaving their houses and places of work to visit shops etc even though the Internet could replace this necessity. So long as people do wish to meet with other people there will be a High Street and so long as there is a High Street there will be Solicitors there too.
I have heard from the day I qualified and every week since how High Street law was about to end and how the web, shopping centres, the CoOp and Tescos and now ABSs will see the end of High Street law. I am fed up with what passes for informed comment from writers and consultants predicting my demise. Sure things have changed but High Street firms exist because there is a High Street so as long as there is a High Street there will be High Street firms.
There is too much doom and gloom dressed up as informed comment.
My own view is that, just as with estate agency work, retailers such as Tesco and Asda will realise they are better off as retailers and that even commoditised legal "products" don't shift as fast as a bag of own brand frozen peas.
Turn Competition to Co-Operation
There is a high street.
Retailers pay big rents.
It's easier to borrow their customers
and turn them into your prospects.
You just set up a referral network.
I've identified at least 70 types of company
you can refer with. And that excludes high
street retail.
Add in retail and it's probably 100.
If you are going to go retail then go high value.
Because otherwise someone will set up stall next to you
and charge less.
And who really wants to work retail hours...if you are doing the
work yourself?
Far better to be high value and dictating when the work get's done.
And if someone wants out of hours...aren't there services that do
that for most paper-based transactions now? Those that appeal
to the general consumer? Far better to have a national market
for Wills you invest £3500 a year in building than £20k a year
on rent.
Interesting business model
It will be fascinating to see if the retail model works for QS. There is certainly a glut of retail space available in many parts of the country right now and some very attractive long term rental opportunities. However, at a time when many banks and insurance companies are reducing their branch network due to cost cutting and the increase in web based services, I wonder if this is such a good idea. It has great entrepreneurial spirit behind it and that must be applauded at least.
High streets are not what they were....
Interesting analogy with the high street in this blog.
But it's worth remembering that the high street 20 years ago had independent butchers, florists, green grocers, bookshops etc.
These were severely affected by out of town supermarkets and retail parks. Now we are seeing "local" versions of these large retailers creep back onto the high street, competing with large coffee chains for high street retail space. This keeps the high street rents high, forcing out the small independents.
The point is this - it is certain that small independent high street practices will be affected by "tesco's law" and firms such as QS setting up. What is less certain is when and to what extent.
Either way, high street practice owners need to prepare for the future - recent research we did (www.future-lawyers.co.uk) indicates that too many lawyers are failing to prepare.