Posted by BamaNSA on 6/27/06 3:41pm
Msg #128978

Undercutters

I've had several calls lately from companies that have never called me before. I quote them what I think is a very fair fee and they say they will call back but never do. I am in the Birmingham, AL area and am guessing they are calling other notaries that quote them a lower fee. With gas the way it is, I'm not sure how they are making a profit if they are undercutting me. Just wanted to vent. Have a great evening.

Reply by PL on 6/27/06 4:21pm
Msg #128987

In the interest of not being a smarta**, maybe they have a lower overhead then you. Maybe
they live around the corner or maybe they make it in volume. Or maybe they have a poor business plan and will be out of business soon, I don't know. It still is America and people can set their own prices and run their business as they see fit.
I have been undercut many times and I am sure that I have undercut others, but I am still standing and I am sure you will continue on also. Just let it go and keep moving forward. Good luck.

Reply by BamaNSA on 6/27/06 4:28pm
Msg #128991

My overhead is very low and my fees are very low, thank you! No one is around the corner from the place that the last company wanted me to go. They are 40 miles one way from the closest big city. I guess I was just trying to make a point that if they were lower then me, they are very low and in some way I feel that notaries charging really low rates brings our whole business down.

Reply by AngelinaAZ on 6/27/06 5:26pm
Msg #129020

They certainly do bring the business down.

*** or maybe they make it in volume ***

Just so you know... I don't think many of us subscribe to this philosophy. It doesn't work. If it did you would see realtors undercutting and advertising listings for 3% or 2%... or appraisers advertising for $150 appraisals everyday.

Sorry... but it doesn't work. Do your business plan... market market market... stand strong on fair and reasonable pricing and you'll do great! It sounds like you are doing this already... good job!

Reply by PL on 6/27/06 7:18pm
Msg #129059

I do have customers that throw quite a bit of business my way that I discount, because of volume and ease of doing. Does that mean that I am the scourge of the business? Or did I market, wheel and deal, set a reasonable price, and over deliver on all my promises that has made me the one they call?

Reply by Ndwa on 6/27/06 7:53pm
Msg #129078

I would throw in a favor (free 2nd trip) here and there for my services, but never will I discount my services based on volume. I have gone from $150 to $200 with some clients and still get the volume. My Economic101 said volume discount only apply to products, not services.

Reply by MistarellaFL on 6/27/06 8:33pm
Msg #129089

Andy, that is my way of thinking as well.
Business favors, little goodies I send my best clients are well thought of and appreciated.
A free 2nd trip (favor) is also a nice way to say thanks for your business.

Reply by MelissaCT on 6/27/06 9:31pm
Msg #129108

Volume

Several years ago, there was a construction outfit that did road work here in my state. They consistently were low bidder & mainly lost money on EVERY deal. The philosophy was that volume would make up for the losses. They've been out of business for years!! Bankrupt!! A business simply cannot survive on "volume" when every job is done at a loss. Do the math...

Reply by BrendaTx on 6/27/06 9:33pm
Msg #129109

Re: Volume THANK YOU Melissa - Math is wonderful!

**A business simply cannot survive on "volume" when every job is done at a loss. Do the math.**

Reply by ck_KY on 6/27/06 7:56pm
Msg #129080

**or maybe they make it in volume**, by all means let them. If someone wants to take 6 assignments @$50.00 each a day, I will hold out for the one or two that pays $150.00-$200 each and make about the same they are. I would much rather be spending the summer with my kids in the pool than to run around with a chicken with it's head cut off! IMHO

Reply by riannonsd on 6/27/06 9:00pm
Msg #129102

Question; are you getting those prices from SS or do you have Title Co. business?

Reply by PL on 6/27/06 10:01pm
Msg #129116

That would be TC and who said anyone was working at a loss? If one knows the cost of services provided along with the fixed costs and bids "discounted" jobs for certain companies @ a 30% margin rather than a 50% margin for volume work, who is losing money?