Smart proposal pricing isn’t just for BAFO: get strategic earlier in the bid
A partner hems and haws, stares out the window, then sticks a finger in the air and announces:
“Let’s put the partner rate up 15 bucks an hour.”
And just like that, pricing’s “done”.
It’s funny how often pricing is the last thing touched in a law firm bid—scribbled in after the narrative is polished and page limits are looming. But if you leave pricing to the end, you're not negotiating: you’re reacting. Worse, you’re undermining the value you’ve just spent 20 pages establishing.
Let’s treat pricing as part of your bid strategy, not just an add on activity.
Pricing is part of the process. . . not an afterthought
In your proposal response, you shape how clients perceive your value. Your pricing should support that.
Across the bid lifecycle, smart firms treat pricing as an evolving conversation:
Pre-bid: Understand your cost structures, past pricing, and commercial levers before the tender lands.
Live bid: Offer thoughtful pricing models that support the client’s outcomes and align with the proposed approach.
Post-bid (BAFO): Prepare to negotiate, without just discounting. Reinforce value, offer structured alternatives, and stay clear on your limits.
Leaving pricing until the last minute (or worse, guessing) can erode trust and margin.
No point winning on terrible terms.
What clients actually want from law firm pricing
Across most market segments, clients value:
Predictability and control
Clear understanding of how fees work
Options for managing spend
A sense that the price reflects the value delivered.
Cheap doesn’t always win.
But confusing or poorly justified pricing almost always loses.
Pricing models: the good, the bad, and the misunderstood
Let’s look at common models and when they work:
Capped fees – Risky if not tightly scoped - usually all downside, no upside.
Segmented fixed fees or event pricing – Can be excellent if boundaries are clear.
Blended rates – Appeal to some philosophically, but many clients default to wanting partner or senior lawyer attention only.
Tiered hourly rates – Smart way to reward early resolution and show aligned interests.
Volume discounts – Best when offered upfront with no retrospective clawbacks.
Retainers – Viable when thoughtfully constructed, well-scoped, and transparently reported.
Use pricing to reinforce your positioning.
Don’t just throw out a number: make the pricing part of your story.
BAFO is not just about trimming rates
During Best and Final Offer (BAFO) rounds, firms often panic and slash fees. Instead:
Clarify what’s driving the request: price? scope? risk?
Offer structured options, not just discounts (e.g. phased fees, alternate fee models)
Link pricing to value, outcomes, or delivery approach
Reduce with purpose, if you must: clarify what changes (scope, timing, deliverables)
Know your limits, and when to respectfully walk away.
Pro tip: Use your BAFO response to reinforce your value, not apologise for your pricing.
Final takeaway
Smart pricing starts long before the BAFO round.
Build pricing into your bid strategy from the outset, because pricing isn’t just what you charge, it’s how you frame your value.
About the author
Amy Burton-Bradley is a legal tender strategist and the founder of Bidtique. Law Firm Tenders is her resource site for firms who want to sharpen their approach to tenders, bids, and proposals.