A study investigating good practice initiatives was commissioned by the Law Society's property and commercial services committee from Carton and Myers of Practical Solutions for Lawyers.

It recommends that a conveyancing package should:-- offer either a standard or a quality service because attempts to provide both presents a conflicting image of the firm, making it difficult to maintain the higher fees for the quality service;-- target the clients the firm wishes to attract;-- re-examine the importance of price to clients.

While solicitors believe this is the decisive factor, research shows that clients express less price sensitivity;-- pay particular attention to improving the response to requests for telephone quotations.

Many solicitors fail to use these requests as an opportunity to present the non-price benefits of using their firms.A conveyancing package should include:-- advice on the locality;-- guidance on local estate agents and surveyors and contractual arrangements with these professionals;-- financial advice; and-- help with avoiding or minimising the chance of gazumping.PRODUCT IMPROVEMENTMarket research shows that solicitors should put more effort into personal contact with their clients and relate conveyancing to the concerns that people have when buying or selling a home.

They should sell a conveyancing package that includes benefits that clients can both understand and value.

Buyers wish to know whether the home they are considering has hidden defects, whether it is located in the type of area in which they wish to live and how to finance the purchase cost effectively.

Solicitors should build a reputation for their knowledge of the local housing market and for their ability to provide sound advice.

This would lead clients to approach them at the start of the process.

This will not be an easy task but it may be the only way to increase profitability.

MARKET VOLUMEConveyancing transactions may increase slightly over the next 18 months but this upward movement will not generate much increase in income.

Firms wishing to increase their profits from conveyancing will need to capture an increased market share or persuade clients to pay higher fees.

The total conveyancing market fell by 10% in 1995.

It is estimated that during 1995 solicitors conducted 1.9 million residential conveyancing transactions.

Although the number of solicitors in private practice increased by 16% between 1989 and 1995, the number of solicitors conducting conveyancing as a regular activity fell by 17%.

This fall was insufficient to preserve the workload per conveyancing solicitor.

Between 1989 and 1995 the number of residential conveyancing transactions conducted by solicitors fell by 29%, while the gross fee income from this source fell by 32%.MARKET SHARESolicitors conduct 92% of conveyancing.

Licensed conveyancers have 4% of the market and 4% of home buyers/sellers do their own conveyancing.

There are only 400 licensed conveyancers but 800 are in training.

In-house conveyancing should also be regarded as a threat which could be revived by a housing market recovery.

A Labour government may be persuaded to encourage in-house conveyancing by both lenders and consumer organisations.

Research conducted by the Law Society's research and policy planning un it in 1989 and 1990 showed that, while opinion was divided on the merits of one-stop shopping as opposed to having an independent solicitor, clients valued the concept of independent advice.

Solicitors need to demonstrate and publicise the fact that they can provide this.

INCOME/FEESIn 1994, residential conveyancing was still the most important source of revenue for small firms.

It accounted for 32% of the fee income of sole practitioners and 21% of the fee income of four-partner firms.

Almost one half of sole practitioners and four-partner firms considered residential conveyancing to be fairly profitable.

Conveyancing fees increased slightly in 1995 but still remained very low.

Some 72% of all home purchasers had their conveyancing conducted for less than £300.

For homes costing between £50,000 and £74,499, 67% of purchasers also had their conveyancing conducted for less than £300, while 23% paid less than £225.QUALITY OF SERVICEFor transactions conducted between 1986 and 1992 there has been one claim against the Solicitors Indemnity Fund (SIF) for every 2200 transactions.

This is a better record than might have been assumed from recent press coverage.

All solicitors suffer because of the publicity given to poor quality conveyancing.Solicitors also have an interest in reducing the cost of indemnity insurance.

For firms with a good claims record, the advantage of being able to tell clients that they will be fully compensated for any loss due to negligence or dishonesty is offset by the high indemnity fund contributions that they have to pay to meet costs generated by firms with a high incidence of claims.

In 1993/94 residential conveyancing accounted for 12 to 15% of the gross fee income of private practice.

It also accounted for 28% of the value of claims against the SIF.

In 1993/94, the sum paid out by the SIF in settlement of claims arising from residential conveyancing was equivalent to 2% of the gross fee income earned from this type of work.

Total payments from the SIF were equivalent to 0.6% of total gross fee income.

The new proposals for claims loading put out for consultation by the SIF could ensure that the firms with the worst claims record pay a higher proportion of the costs involved.