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Despite 2025’s 7.4% worked rate increase — far outpacing inflation — law firms may be nearing a pricing ceiling, according to the Law Firm Rates Report 2026 from Thomson Reuters. Firms use varying rate and discount strategies but collect nearly identical per-hour revenues due to market forces, the report found. Client loyalty enables rate hikes, yet has minimal impact on winning new business. “Rates have never been stronger, but concerns are mounting,” the report notes. Long-term growth hinges not on perfect strategy, but on leaders’ ability to align pricing models with firm culture and adjust as conditions shift amid rising client cost sensitivity.
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