April 15, 2011 nº 1.030 - Vol. 9
"Idealism kills every deal."
In today's Law Firm Marketing, Value/price equation drives hiring decision, client loyalty.
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Goldman Sachs accused of misleading investors
A US Senate probe says Goldman Sachs misled investors selling mortgage-backed investments it knew would fail. The Senate Permanent Subcommittee on Investigations has spent two years looking at the behavior of Wall Street banks at the time of the credit crisis. It said Goldman had also misled Congress in a testimony given in 2010. On Wednesday, the Senate subcommittee said it had found "a variety of troubling and sometimes abusive practices" by banks in 2007 as the credit crisis began. The report said that Goldman marketed four sets of complex mortgage securities to banks and other investors, but failed to tell them the investments were very risky. In addition, the report said the bank did not mention that it was itself betting that the investments' value would fall, indicating it sold products to clients it did not believe in backing itself.
Bric summit ends in China with plea for more influence
The leaders of the so-called Bric emerging economies have called for more influence - including Russia's speedy entry to the WTO - World Trade Organisation. South Africa is attending the group's annual summit for the first time. As well as the WTO call, the group has asked for certain changes to the global financial system. These include a call for the International Monetary Fund to expand its use of SDRs - Special Drawing Rights, which are used as a quasi currency to transfer funds between member governments. The Brics called for a broad-based international reserve currency system "providing stability and certainty". A joint communique, termed the Sanya Declaration, said the current system was no longer representative. "The governing structure of the international financial institutions should reflect the changes in the world economy, increasing the voice and representation of emerging economies and developing countries," it said.
Obama urges spending cuts and increased taxes on rich
Obama has called for raised taxes on the rich as well as cuts in government spending in what he termed a balanced approach to cutting the huge US budget deficit. In a speech in Washington DC he outlined a package of tax increases and spending cuts aimed at reducing the deficit by $4tn by 2023. "We have to live within our means, and we have to do it in a way that protects the recovery, and protects the investments we need to grow, create jobs, and win the future." Republicans have said any increase in taxes is a "non-starter".
SEC's Gitmo-style Wall Street justice has flaws
The Securities and Exchange Commission is bringing Guantanamo Bay-style justice to Wall Street -- but it's flawed. Accused fraudster Rajat Gupta is fighting the regulator for suing him in a stripped-down forum rather than federal district court. Judge Jed Rakoff, who may hear his challenge, is also concerned. The Dodd-Frank financial reform law allows the SEC to put financial fraud cases on a fast track in administrative hearings rather than going to full federal court. The loose analogy is the trial of Gitmo detainees by military tribunals rather than U.S. courts -- it's still a defined legal process, but there are fewer safeguards to protect those accused. Gupta may well fail in his claim that Dodd-Frank's expansion of the use of administrative courts should not apply to him retroactively. But the former McKinsey boss, who is alleged to have passed inside information on Goldman Sachs and other companies to Galleon Group's Raj Rajaratnam, has a point about his rights. In the short-cut process, he can't get a jury trial or demand many of the details behind the SEC's case against him. More important, abbreviating a citizen's traditional rights opens the process to endless challenge. In this case, there's an additional question of arbitrariness. As Gupta points out in court papers, the SEC filed all its other Galleon-related cases in federal district court.
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1 - Unilever, P&G fined $457m by EU for detergent cartel - click here.
2 - SD judge faces potential removal due to alleged rude and racist remarks and use of the 'bird' - click here.
3 - Prisoners' voting rights: government loses final appeal in European court - click here.
4 - Divorce app could help couples decide if their marriage has a future - click here.
5 - NHS faces £85.8m compensation bill over maternity blunders - click here.
6 - Winklevoss twins must accept Facebook deal - court - click here.
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Value/price equation drives hiring decision, client loyalty
by Trey Ryder
How much can you charge your clients?
You probably know lawyers who charge a fortune for their services and their clients happily pay it. At the same time, you probably know lawyers who have to fight for every dollar they earn.
What is the difference between these lawyers?
Often, it comes down to the value/price equation, which says:
Prospects will hire your services -- and clients will continue to use your services -- as long as they believe that the value they receive from you is (1) greater than the price they pay, and (2) greater than the value they would receive from another lawyer for the same fee. In most cases, unless both of these conditions are met, you'll lose clients.
How much prospects and clients value your services is the direct result of how well you provide things they believe are important. For example, how do you rate yourself in the following areas?
(1) Knowledge, skill and experience. The more you have, the higher your value.
(2) Self confidence. The more confident you appear, the better your clients feel and the more peace of mind they enjoy.
(3) Responsiveness. How quickly you return clients' phone calls. How quickly you finish clients' work. How quickly clients can see you in your office or talk with you on the telephone. The shorter the time, the higher your value.
(4) Understanding and communication. How well your clients understand what you tell him. How well and how often you communicate with clients about their cases. The better the communication, the higher your value.
(5) Reputation. The better your reputation, the more your clients value working with you.
(6) Results. The better the results you achieve for clients, the higher your value.
(7) Relationship. How much clients depend on you. How much clients feel they can trust you. How long you and your clients have worked together. The stronger your client relationships, the greater your value.
(8) Your reception area. A pleasing appearance adds value. A dingy or drab look detracts from value. New magazines neatly arranged, a plus. Old magazines thrown in a pile, a minus.
(9) Greeting. A friendly, warm, caring reception is a plus. Cold or impersonal, a minus.
(10) Access. If your clients get in to see you quickly, a plus. The longer they wait in the reception area, the lower your value.
(11) Office location. The closer it is to clients, the more value they perceive. However, if clients never come to your office, this may have no effect on your value.
(12) Parking lot. When parking spaces are easily available, that's more value for your clients. If your clients have trouble parking, that's less value.
This is just the beginning. Everything in your relationship either adds to or subtracts from the value your clients perceive. Whether it's good service, peace of mind, or sports tickets, everything counts.
The one element that does not increase or decrease value is your fee. Your fee is your client's gauge against which he measures your value. Regardless of whether your fee is high or low, the fee itself does not add to or subtract from your value.
If you have a low fee, it may be a competitive advantage if other lawyers have higher fees. But if higher-priced attorneys also offer their clients more value, then you're comparing apples and oranges because what the client receives is not the same.
I had a friend who passed away a few years ago. He was a prominent tax attorney in Phoenix. Just after I graduated college, our paths crossed and he invited me to breakfast. From that day forward, I felt bonded to this man because he always treated me as if I were the most important person in the world.
Obviously, I was not in this man's target audience. I was just a kid fresh out of college. But for the 23 years I knew him, I told people about my friend and mentor. I reinforced other people's perception of his value.
This lawyer went to great lengths to add value to his services. The moment I pulled into his parking lot, I knew he would take good care of me because he provided covered parking spaces for his clients. (In the summer heat in Phoenix, covered spaces have a high perceived value.)
And the spaces weren't off in some far corner of the lot. They were the very first spaces outside the building's entrance. I knew this man had power and influence or he wouldn't have been able to get those spaces for his clients.
What's more, when I entered his reception area, he served soft drinks in glass tumblers. (You would never find a pop can in this man's office. He wouldn't stand for it.) And ice cubes? Only the hard-frozen kind that were crystal clear. The spotlights in his reception area reflected off the ice cubes like sparkling diamonds in a jeweler's showcase.
What did this man charge? The standing joke was that he charged twice what any other lawyer would dare charge. But his clients loved to pay their bills because they believed they had the top tax lawyer in town and he treated them like royalty.
You can do a lot to increase your value to clients. The first things clients notice are speed and accessibility. The quicker clients get in to see you, the quicker you complete their work, the quicker you return phone calls -- all add value to your services.
Review the 12 points above and identify where you can increase your value. Remember, not all clients perceive value the same way. One client may appreciate a quick response. To another, speed might not matter. One client may like your covered parking spaces. But to the client who doesn't come to your office, parking is not important.
If you want to make improvements in your value, ask clients what improvements they would value most. Or poll your most important clients to see what value they would like you to add.
Client loyalty is the result of value delivered over time. The more value you provide, and the longer you provide it, the more client loyalty you'll enjoy. For years. For decades. For life.
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© Trey Ryder
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Petrobras
La estatal Petrobras Biocombustível y la local Açúcar Guarani anunciaron a la prensa brasileña que invertirán US$ 18,5 mlls. para producir etanol en la unidad azucarera de São José en la localidad de Colina, en el estado de São Paulo.
Energía
Empresario brasileño Eike Batista crea Bolsa para negociar energía eléctrica con inversión de US$ 9,4 mlls. La plataforma está orientada a los grandes consumidores, como industrias, centros comerciales y supermercados.
Negocios
La mexicana Embotelladoras Arca anunció la compra de la estadounidense Señor Snacks. Arca tomó la operación de la firma norteamericana desde el 1 de marzo.
EU copyright nominee stirs debate
The appointment of a former record industry representative as EU copyright chief has raised questions in Brussels about plans to overhaul the bloc's copyright rules.
Leaders insist 'Gaddafi must go'
US, British and French leaders say in a joint letter that there can be no peace in Libya while Muammar Gaddafi remains in power.
World Bank warns millions face poverty
The World Bank has warned that rising food prices, driven partly by rising fuel costs, are pushing millions of people into extreme poverty. World food prices are 36% above levels of a year ago, driven by problems in the Middle East and North Africa, and remain volatile, the bank said. That has pushed 44 million people into poverty since last June. A further 10% rise would push 10m more below the extreme poverty line of $1.25 a day. The World Bank estimates there are about 1.2 billion people living on less than $1.25 a day.
US air traffic control head quits
Hank Krakowski's decision follows a string of incidents involving controllers who were asleep on the job as planes came in for late-night landings at major airports.
How to fix (or kill) web data about you
As more of our social lives, shopping sprees and dating misadventures take place online, we leave behind, purposely or not, a growing supply of personal information. Marketers, employers, suitors and even thieves and stalkers are piecing together mosaics of who we are. Even when it is accurate, it may not present a pretty picture. For a glimpse of your mosaic, type your name into Spokeo.com. Prepare to see estimates of your age, home value, marital status, phone number and your home address, even a photo of your front door. Snoops who take the time to troll further online may also find in blog posts or Facebook comments evidence of your political views, health challenges, office tribulations and party indiscretions, any of which could hurt your chances of admission to school, getting or keeping a job or landing a date. Many privacy experts worry that companies will use this data against users, perhaps to deny insurance coverage or assign a higher interest rate on a loan.
The online aggregation of personal data is setting the stage for "a WikiLeaks for your life."
The harder part is masking the information. It's often possible to remove information yourself, though it will probably be a time consuming ordeal. First, delete anything too valuable on social networks like Facebook. A full birth date or home address can be used to steal your identity. Personal details can be cloaked using privacy settings that make them available only to friends. Also remove or deactivate social networking accounts you no longer use. If someone else posted information you want removed, you'll have to reach out to that person. A friend on Facebook may agree to delete an unflattering photo of you. But getting an online publisher or a data broker — a company that buys data from other companies and then sells it to companies that collect it — to remove content, especially if it's truthful and legal, can be tricky. Many data brokers will let you opt out of their databases, though you will have to contact each one individually. "You may have to wait as long as 30 days for information to come down. And they don't guarantee it will come down forever." "It's a messy and complicated problem." Information that is taken down should drop out of the search engines within a few weeks. If it doesn't, submit a request for it to be removed. Google provides instructions, but without action from the site owner, Google rarely removes content that's not illegal.
BP annual meeting sparks angry protests
BP faced angry demonstrators at its first annual general meeting since the disastrous Gulf of Mexico oil spill. Fishermen from the US joined UK trade unionists and environmentalists for almost four hours of protests at the AGM in London. There were scuffles outside the hall when some activists were refused entry, and proceedings inside were momentarily halted to evict a group of people. Inside the ExCel centre in east London the BP board faced a barrage of hostile questions about its "green" credentials, pay, and ill-starred bid to do a deal with Russia's Rosneft.
Argentina former military ruler Bignone gets life
Argentina's last military ruler, Reynaldo Bignone, has been sentenced to life in prison for the torture and murder of political opponents more than three decades ago. Four other former soldiers and police officers were also convicted. The trial is the latest in a series related to military rule in Argentina in 1976-83, when around 30,000 people were killed or made to disappear.
Brazil's airports 'will not ready for World Cup 2014'
Most of Brazil's airports being improved for the World Cup in 2014 will not be ready in time, a report warns. Of 13 terminals being upgraded, 10 are unlikely to be completed by June 2014, the government-backed Ipea - Institute for Applied Economic Research said. It warned that even if extra investment meant that the airports were ready in time, 14 of the country's 20 airports would be operating over capacity. Ipea puts much of the blame on Infraero, the state-owned airport authority, which it says, "has a low level of efficiency in the execution of investment programmes".
Foxconn 'mulls $12bn Brazil move' as it seeks expansion
Foxconn in planning to invest as much as $12bn in Brazil. Taiwan-based Foxconn operates the majority of its factories in China, producing goods for firms like Apple, Hewlett Packard and Dell. The electronics maker has been looking to expand its operations beyond China, due to rising Chinese labour costs. Foxconn is the biggest contract electronics manufacturer in the world.
Glencore flotation to raise up to $11bn
Glencore, the world's largest commodities trading firm, has announced its intention to raise $9bn-$11bn (£5.5bn-£6.7bn) on the London and Hong Kong stock exchanges.
'Underground town' of migrants found in Moscow
Police in Moscow have discovered what they are calling an "underground town" housing illegal immigrants from Central Asia in a Soviet-era bomb shelter in the west of the city. The discovery was made by police and agents from the FSB security agency and Federal Migration Service. The underground area was guarded by a four-metre-high concrete wall and barbed wire. It housed 110 men and women.
German politics rocked by new plagiarism probe
A senior German liberal politician, Silvana Koch-Mehrin, is under scrutiny for possible plagiarism in her university thesis, echoing the scandal that hit the former defence minister. The University of Heidelberg is re-examining Koch-Mehrin's academic work on currency unions. She is a vice-president of the European Parliament. The MEP, a leading member of the FDP - Free Democrats, allegedly failed to source the 227-page thesis properly.
Berlusconi vows not to run for new term in 2013
Berlusconi has confirmed that he will not run for office again when his current term expires in 2013. He told reporters he intended to complete his plan to amend Italy's judicial system, and to change the country's constitution before leaving. Berlusconi has survived numerous scandals and criminal trials. On Wednesday the lower house of parliament approved a bill that would cut the length of some trials.
Tunisia charges ousted president with protester abuse
Tunisian justice minister Lazhar Karoui Chebbi announced Wednesday that the government has charged former president Zine Al Abidine Ben Ali with 18 offenses ranging from murder and conspiracy to trafficking and drug use. The charges stem mostly from allegations that Ben Ali authorized the use of force against protesters during the Tunisian revolution, resulting in the deaths of more than 200 protesters. In January, Chebbi announced an arrest warrant had been issued for Ben Ali. The country is currently seeking his extradition from Saudi Arabia. Chebbi also announced that a joint delegation of the Ministry of Justice and the Ministry of the Interior will travel to Interpol - International Crime Police Organization headquarters to seek expedited implementation of the extradition requests.
Madoff trustee's filing alleges JPMorgan 'thoroughly complicit' in fraud
The trustee liquidating con man Bernard Madoff 's former investment firm filed a revised complaint that disclosed new details of his $6.4bn lawsuit against JPMorgan Chase & Co.
Somali man indicted in US as alleged pirate leader
A suspected Somali pirate leader appeared for a detention hearing in the US District Court for the Eastern District of Virginia on Wednesday after his March 8 indictment was unsealed. In his announcement, US attorney Neil MacBride wrote, "[t]oday marks the first time that the U.S. government has captured and charged an alleged pirate in a leadership role—a hostage negotiator who operated in Somalia." Mohammad Saaili Shibin, 50, was reportedly captured by the FBI and military on April 4 and sent to the US to face criminal charges for negotiating ransom payments for four Americans who were kidnapped in February when their yacht was hijacked near Oman. All four hostages were subsequently killed. Kenya, Germany, Seychelles, the Netherlands, Mauritius, Yemen, Somalia and Spain have all attempted to prosecute suspected Somali pirates. In the past few months, US courts have sentenced Somali pirates to 25 years, life and 34 years in prison. However, in August a federal judge dismissed piracy charges against 6 Somalis because the government "failed to establish that any unauthorized acts of violence or aggression committed on the high seas constitutes piracy" under 18 USC § 1651. Somali officials have criticized the US for exercising jurisdiction over suspected Somali pirates and have called for piracy cases to be handled by an international tribunal. Oceans Beyond Piracy has estimated the total cost of piracy in 2010 to be in the range of $7-12bn, including $148m spent on ransoms and up to $3bn on re-routing ships. At the end of 2010, approximately 500 individuals were being held hostage by Somali pirates.
Ontario court finds Canada medical marijuana laws unconstitutional
A judge for Ontario's Superior Court of Justice ruled Wednesday that the country's marijuana laws are unconstitutional. Justice David Taliano invalidated the MMAR - Marihuana Medical Access Regulations, finding that the program's mechanisms for licensing patients to access medical marijuana are insufficient. These inadequate licensing procedures led Taliano to also strike down portions of the Controlled Drugs and Substances Act that criminalize marijuana growth and possession. The ruling cites systemic difficulties for patients seeking medical authorization, as doctors, many of whom lack proper training in prescribing the drug, are often hesitant to approve marijuana use for patients due to insufficient funding for clinical trials. Absent appeal, the government has 90 days to remedy MMAR's authorization processes, lest marijuana growth and use will be legal regardless of the purpose.
Obama signs law repealing business tax reporting mandate
Obama signed a bill repealing a tax-compliance mandate in last year's health- care law, giving a victory to business groups that led a campaign against the requirement. The repealed provision, under which companies would have had to report more transactions to the Internal Revenue Service, was included in the law as a revenue-raising measure. It was to have taken effect in 2012. "Small business owners are the engine of our economy and because Democrats and Republicans worked together, we can ensure they spend their time and resources creating jobs and growing their business, not filling out more paperwork," Obama said.
Yemen opposition rejects GCC offer
Al Arabiya, Online news, Dubai, United Arab Emirates
Western leaders insist 'Gaddafi must go'
Al Jazeera, Doha, Qatar
Mubarak detention a victory for many, army uneasy
Asharq Al-Awsat, Pan-Arab daily, London, England
Hamas: Kidnapped Italian activist found dead in Gaza
JPost, Conservative, Jerusalem, Israel
Berlusconi tips justice minister as successor
Nahamet, Online news portal, Beirut, Lebanon
Yemen defected military clash with security forces leaves eight injured
Yemen Observer, Sana'a, Republic of Yemen
Connacht poised to sign All Black
BreakingNews.ie, Online news portal, Cork, Ireland
Minsk bomb metro reopens five in custody
EuroNews, International news, Ecully Cedex, France
LIBYA: NATO air strikes rock Tripoli
France 24, Issy-les-Moulineaux, France
Turkish journalist not brought to own trial
Hurriyet Daily News, (Liberal, English-language), Istanbul, Turkey
Obama, Cameron and Sarkozy state their commitment to regime change
Independent The, London, England
BP deal gets lifeline
Moscow News The, Independent, Moscow, Russia
Armenia's interest rate increase 'not expected to hurt growth'
Radio Free Europe, Prague, Czech Republic
Vince Cable backtracks on criticism of David Cameron's immigration claims
Telegraph The, Conservative daily, London, England
Nuclear crisis causes Japan tourism falls 50%
WNC News, London, England
Japanese police find 10 bodies at nuclear zone
Daily Jang, Left-wing daily, Karachi, Pakistan
CIA will not halt operations in Pakistan: official
Dawn, English-language daily, Karachi, Pakistan
India, S Africa to conduct joint Naval exercise
Hindustan Times, New Delhi, India
US defies French ban, will allow Muslims to wear burqa
India Express, News portal, Mumbai, India
New Act to regulate private school fees
India Times, Conservative daily, New Delhi, India
US Congress passes spending cuts; Obama to sign
Sify News, Chennai, India
Japan evacuation may force Hitachi to close plants
The Economic Times, Business, Mumbai, India
Haitian trafficking victims discovered in Ecuador
Caribbean360, Online news portal, St. Michael, Barbados
Presidency's Adviser warns judges, officials, reporters on hired killers
Dominican Today, Independent daily, Santo Domingo, Dominican Republic
Cuba's communist party to adopt reforms
IPS Latin America, International cooperative of journalists, Rome, Italy
Party leaders to focus on differences, divisions in second half of campaign
Toronto Star, Toronto, Ontario
Mahama advocates think tank to review health delivery
GhanaWeb, Online news portal, Amsterdam, Netherlands
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