Whenever I hear professionals talking about how reasonable their fees are, I wonder if they really know how much their clients' incomes are, how many Americans really live in rather abject poverty. I doubt it. As I write, there is a home sales program playing in the background on my TV, advertising homes from $200,000 and up. Of course, they're actually pushing the $500,000+ homes. Dreaming is nice but those homes shouldn't be a realistic consideration for most Americans.
In 2008, we had a population in excess of 300,000,000. Of whom, 13.2%, nearly 40,000,000 people, lived below the poverty line. (Table 2) That line is set at $10,991, $14,051, and $17,163 for families of 1, 2, and 3, respectively. (Table 1) In 2008, 31.9%, over 96 MILLION people, lived at double the poverty rate or below (which was $34,326 for a family of 4). (Table 5) Now, why on earth is the US Census bureau making that "double the poverty level" calculation at all? Because anyone who looks at the numbers knows the "poverty level" is an utter joke. That number is supposed to be the amount sufficient to provide food, shelter, clothing, and health. It simply does not meet the first 3, forget health care in any form at all. So, they double the number. However, when looking at skyrocketing health care costs, I have doubts that that doubled number takes care of food, shelter, and clothing. If it does and the family doesn't qualify for some form of group health care, they'll be spending $300/month for premiums (at least). If they can squeeze that into the budget, it's unlikely they could afford more than 1 co-pay per month, forget medications, and pray there are no on-going health problems for any family members.
But there's the rub, so many living at these levels DO have on-going health problems and that's exactly why they can't earn more. They are also the ones most in need of professional services from lawyers, doctors, accountants, and even veterinarians; all of whom should be acutely aware of their clients' circumstances and be prepared to have frank discussions with them about financial issues.
Professionals need to perform their services efficiently and effectively and they need to be prepared to provide what the client can afford without making the client feel guilty if the costs are beyond their means. In my opinion, they should also set a good example by being fiscally responsible themselves.
The first attorney I worked for was incredibly fiscally responsible and was in a bankruptcy practice. He provided those services at very low prices by being efficient and effective. After moving to a new office, he announced he was bringing his "big" desk from home to the office. He was so proud of that enormous Mahogany desk and it was one of his 2 luxury items (the other being his custom fitted suit, worn to court once/week). We talked him out of bringing it to the office. There was nothing wrong with him having it, he earned it and did without a great deal to have it. However, the appearance it gave to clients struggling to come up with $400 for his fee just wasn't the greatest. While I understand professionals wanting to present a certain "face" to the public, to clients; they also need to understand the clients DO notice and realize the cost of all those items.
Professionals are inundated with sales people telling them they need the newest technology. It simply isn't true. One needs as much technology as will help make the practice efficient and effective, at the level the clients need and can afford. 1 out of 3 clients will struggle to pay a bill of $500 and may be completely unable to pay a bill of $1,500. The relationship between a professional and a client should be ongoing and forthright. Professionals simply must be prepared to discuss finances, to not shove this off on staff. Many will say this is a discussion the client should open. I say absolutely not. The client has no way of knowing what the professional knows, which is precisely the point. The responsibility to open this discussion and explain the parameters is on the professional. The client only knows their own finances and hasn't a clue what you really do. If they did and could do the same, they wouldn't be in your office at all.
And before you go telling your clients to cut corners to pay your bill, make sure your own financial house is in order. Are you living in a reasonable house? Driving a reasonable vehicle? Piddling away your money on yuppie bottled water at the corner store? If you went to college, the public helped pay for your education. Ah, you say you have student loans to pay? The public fronted that too. Even after you've paid the public back for those, you owe society a debt. Being fiscally responsible yourself is one of the ways to pay back because then you can keep your fees within a more obtainable range for the public.
Median income dropped 3.6% from 2007 to 2008. That median household income for 2008 was $50,303. I'm quite sure we'll soon know a similar drop has occurred for 2009. A professional, one who generally has far more education than their clients, should be able to manage on the median income and anything over that should be considered gravy. To think your income should stay the same while others are experiencing reductions is arrogance in the extreme; to whine about how rough it is if you're making more than the median, is just plain childish. Put your financial houses in order, suck it up and stop whining, set an example for others. Being a professional is far more than having specialized knowledge in one particular area. It evidences an ability to learn and adapt, use those; be more creative, especially if you're going to expect the less educated to do so in order to pay your bill!
The Tables cited above can be found here.