Business finance terms, explained simply.

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Fee Recovery

What is fee recovery?

Fee recovery is collecting more than your standard hourly rate on work performed, often through write-ups or premium billing. Unlike realization, which measures how much of worked time gets billed, recovery can exceed 100% when you charge more than standard rates warrant. High recovery indicates clients value your work enough to pay premiums. It reflects pricing power and perceived value.

When fee recovery exceeds 100%

Some matters justify billing above standard rates. Urgent deadlines, exceptional results, or specialized expertise command premiums. Fixed fee arrangements priced well can yield recovery above 100% of standard hourly value. Strong client relationships and demonstrated value enable premium pricing. Track recovery by matter type and client to identify where you can consistently charge more.

Building pricing power

Fee recovery above 100% does not happen by accident. It requires differentiation, demonstrated value, and client relationships that justify premiums. Invest in expertise that commands higher rates. Document results that support premium pricing. Position your firm for matters where clients pay for outcomes rather than just hours. Recovery rates reveal whether your pricing captures the value you deliver.

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