Posted by Mike_AZ on 11/11/05 10:32pm
Msg #76063

How to set your fees

Many SSs have been trying to maintain their high-profit volume of last year by getting us NSAs to accept lower fees. Do you see lower fees on the HUD? I certainly don't!

Heck with 'em!

I need to make $20 per hour on my hourly work or it is more profitable for me to do babysitting.

How I determine profitability:

eDoc fee is $25. No less. This covers my $3,000 hardware and software purchases plus toner, paper, cable connection, etc.

Distance fee
$1.50 per one-way mile.
Another smart NSA posted a helpful link to NotRot referencing an American Automobile Association article on how it costs at least 50c a mile to own and operate a car. This article was published at the very beginning of 2005 - way before gas prices skyrocketed.
A better figure would be $1.50+ per one-way mile.

So if a signing is 10 miles from you, figure $15 on car expenses alone.

Think about how many hours it takes you to do a signing. Take call, confirm with borrowers, drive to signing, signing, drive home, faxbacks, create invoice, drive to drop off.

Example:
I did a job for a TC today for $160.
55 miles one way. eDocs.
Mileage $82
eDocs $25
$160 is now reduced to $53.

Time: accept job + 7 calls to borrowers to confirm 15 minutes plus, 1.25 drive time each way, 45 minute signing time (calls to TC), 15 minute fax back time, 15 minute invoice creation and phone report, 15 minute drive to FedEx drop off = 4.25 hours.

$53 divided by 4.25 = $12.5 an hour. $2.50 more per hour than babysitters get in cash.

I would not have accepted this job if it were not a TC that gave me LOTS of lucrative business.

The above does not include money and time spent on marketing, notary directory advertising, etc.

Babysitters make $10 an hour and they get paid on the spot, tax free.

If you don't charge $100 base for your town, overnight docs, you are being a chump.


By the way - -
If you are looking for side work, you might take a look at your county's program for foster children. Many counties pay $10 an hour, tax free, for babysitting foster kids for weekend respite care to help full time foster care parents get a well-deserved break.

Set your limits!

Keep your day job until you get high-paying clients!

Reply by Teddog_CO on 11/12/05 7:07am
Msg #76081

Hey Mike,
I was starting to think I was the only person who sits down and figures what they have to charge to do business. Yes! the key words are (doing business.) This used to be a profession, not anymore! We that have been doing this a long time have invested thousands to do it "right." The demands of companies to have laser printers, faxes, high-speed internet,...etc. The list is never ending. These costs are not one time charges, but are a monthly thing, busy or not we pay out-of-pocket.
Companies do not pay for insurance or anything else for a notary (independent contractors) that's up to us. To cut the already low fees is just plain old Bad Business!

Thinking of finding another (profession) myself, just getting tired of this hassle. At least little kids are happy most of the time.

Teddog_CO

Reply by LilyMD on 11/12/05 7:33am
Msg #76082

No, Teddog, you're not the only one who figures the cost of doing business. My sister (also an SA) and I have been doing that for a long time. Unfortunately, those SSs and some TCs that expect a low ball fee from us didn't figure THEIR cost of doing business before bidding for their contracts. Now, we're stuck with their stupidity.

Reply by Anonymous on 11/12/05 11:56pm
Msg #76220

I don't support $50 closings, but I also don't support exagerating your costs. 75 cents a mile to own and operate a vehicle. I think that's too high and I think AAA's number is too high too. It makes sense to me that they are pushing high cost of ownership, they are also selling you a product for when you vehicle fails. If you assume when you drive a car it costs 75 cents a mile it just does not add up. I purchase a car with 42,000 miles, for $12,000. Over the next two years I drive it up to 100,000. At 75 cents a mile that would mean I spend another $31,500 maintianing and operating my vehicle on top of my total purchase price. There is no way I spend that much. At 20 miles per gallon that's 2900 gallons of gas, at $3 per gallon that's a total of $8,700 on gas. So the purchase of $12,000+$8,700 = $20,700. The car is still worth $4,000 so that leaves me $14,800 for insurance and repairs. My records indicate the number is closer to 36 cents per mile.

Using your example:
Fee $160
Mileage $40
E-Docs $25
$160 is now reduced to $95 (now take off another 7.65% since we may be comparing it to working another job and at another job we would not have to pay self-employment tax)
The $160 is further reduced to $87.75

I aslo think I could do the closing in 3.5 hours at the most. The reasons, I generally travel 55 miles in about an hour, or less depending on roads and traffic. While I am driving I may be taking calls for other closings, so I certainly can't double bill for my time. When I drive to drop of the documents I may have more than one set of documents so that 15 minutes would have to be seperated out over the different closings, or it may simply just be on my way.

So $87.75/3.5 hours = That's $25.07/hour

Now I currently make around $44 per hour and $25 per hour is certainly the bottom of what I am willing to make, but I think the average signing agent would make more than $12.50 per hour on this example of a closing.