There is a coffee shop in Fairfield CT that was voted “Best of the Gold Coast” last year. It’s not a Starbucks. It’s cheaper, brighter, and more spacious than a Starbucks. It’s very much focused on COFFEE and TEA. No pink drinks. It offers various foods: bagels, pastries, and avocado toasts. The avocado toast is expensive – I think because they don’t really want their staff to spend much time making it. Compared to a Starbucks the place is understaffed but the wait time for a coffee is about the same or even less than Starbucks because there are not so many customers. However, it’s apparent that the place makes profit and it has been there a while.
This got me thinking about VOLUME v MARGIN, and quality, in the provision of legal services.
Firms that focus on volume – bringing in lots of work – may have problems with staffing and quality.
Firms that focus on margin – getting paid well for the work they bring in – are less likely to be troubled by deficits in staffing or quality.
I run a margin-focused firm. Because my overhead is low, I can be margin-focused and give good quality while also competing on price.
