Using a solicitor is expensive, there’s no doubt about it, and one of the difficulties for solicitors is that most legal work and advice is a negative sale What does that mean ?

When you buy some new clothes, book a holiday or in a work context reach a sales target, all of these things have positive associations, with clear benefits. using a solicitor for almost all matters, perhaps with the exception of a corporate transaction or buying or selling a property, often has no obvious positive benefits. Usually legal advice is taken to protect against current problems or future contingencies and is often seen as a necessary evil, or akin to going to the dentist. Many of us, in a personal or a business context, do not set money aside for potential legal fees, let alone many other necessary outgoings.

So, objectively, are legal fees expensive and are most lawyers as rich as is the general perception ?

The vast majority of the tens of thousands of solicitors in England & Wales work in general practices. Those that don’t undertake legal aid work (which is being severely cut back anyway) or no win no fee personal injury work generally charge by the hour, and the average, although it varies greatly, is perhaps around £180.00 plus VAT for a 5 year post qualified solicitor.

What most people don’t realise is that the profit margins for legal work are generally 30% or less, due to huge overheads and expenses of professional regulation and very high professional indemnity costs. So, if the profit margin per hour is £60.00 or less, and most solicitors are employed (so the partnership may take a percentage), is earning say £40.00 an hour high for the expertise and stress of the job ? We think not, when you compare the charges of, for example plumbers, builders and such like, which businesses have much lower overheads.

What do you think ?