Posted by BrendaTx on 5/23/06 8:08pm
Msg #121816

Understanding competition - I do not get it...

Why do people not understand that the work we do is based on very definitive amounts of jobs available?

Okay before I get jeered out of Notrot...I am not afraid of competition. In fact, I feel kinda cocky right now because I just rec'd a clue that a $55 longhaul driving notary from the next county may be sick of the longhaul up to the local finance company.

However, here's some things to remember - there are a finite amount of loans done in a county each month.

*There is a certain number of signers in covering each county.

*There are only so many loans to go to each signer each month.

*If you go to the courthouse you will learn that number and then check your competition on NotRot, et al. Go through the recorded mortgages and see how many they are.

*Divide that by the number of signers - what's you share going to be IF YOU CAN cut into it? How many new notaries will be coming to the table as well?

*Do some mathematics: Loans signed / Loan signers = avg share of loans to sign.

The reason I am writing this is because I talked with the main cash out Heloc signer of the county today. She does more because she works for the lawyer who's now letting me bring my Helocs to him to do. They do not get into my papers...I maintain control. They don't market anywhere except in the phone book.

She expressed a desire to share this "bounty" we (don't) have with a girlfriend of hers.

I talked to her about how she was just about to cut her own share out. She kind of looked at me blankly...but when your office is taking them at $300, yes, $300 a pop, then you might not mind it...however, I explained to her that her "friend" could probably do exactly as she is doing and lower the bar quite a bit to $50 for overnights if said friend also had a friend in title, or legal.

She and her lawyer boss wanted to know a few ins and outs and I gave her some light answers but in a nice way I told her that my charge for training was $35 and hour and it was hard won knowledge. It's out there...go read.

They have recognized it is about the contacts...and now she knows that if her friend is brought into the loop it might just cut back her share at $300 a pop. And, they know I will not give my contacts...she mentioned hers...they are the ones I have referred to them before I got to know them.

Before, they had one client who had contracted with them for a much lower rate. I am happy that I had that little talk with her. I know she's a sharp lady and one I hope becomes a good notary friend of mine in the future. She's got a generous heart...now I just need to teach her that she's got to be a good business woman also.

Reply by SarahBeth_CA on 5/23/06 8:20pm
Msg #121818

*There is a certain number of signers in covering each county.

*There are only so many loans to go to each signer each month.

*If you go to the courthouse you will learn that number and then check your competition on NotRot, et al. Go through the recorded mortgages and see how many they are.

*Divide that by the number of signers - what's you share going to be IF YOU CAN cut into it? How many new notaries will be coming to the table as well?

*Do some mathematics: Loans signed / Loan signers = avg share of loans to sign.

********************
Great business advice, hopefully those who are considering this line of work will do exactly as you have shared. Now with the big move ahead I already know that there is little chance of a market for this where I am going. In fact the county is so small that I will have to go to the recorders office to research; they don't have deed information online. But we will see. I'm looking and researching other ideas as well.

Reply by BrendaTx on 5/23/06 8:37pm
Msg #121819

You'd be surprised, SarahBeth...you might have a really great place to mine for work. The nether regions of Texas are often bare of an NSA - you might hit the road a lot, but you have to charge appropriately for your time and mileage.

Please send me the info I need for the network.

thanks...

Reply by SarahBeth_CA on 5/23/06 8:39pm
Msg #121821

I did tell my hubby that because it's something I have knowledge and experience at I'm going to market my services regardless and see what happens. You never know. I'll get you the info when we get out there.

Reply by Ndwa on 5/23/06 11:44pm
Msg #121864

***Do some mathematics: Loans signed / Loan signers = avg share of loans to sign.***

It is called Market Share, and the equation goes like:

Invest time to Research (supply/demand/competition) & Development (your niche/experty/service) = Marketing (to gain market shares) => ROI (Return On Investment)

Reply by Missy_Lulu on 5/24/06 12:11am
Msg #121870

Research and Development means you research the supply and demand of a niche market but if the demand factor = saturation?
In marketing (to gain market share) one would have to study also the means by which to gain market share.
Quality of service?
Experience?
$$?
It would appear that $$s are running this one. So in the R&D, I believe one must delve beyond the typical SA business and find those other demand items. With saturation there is no longer a niche market in the Signing Agent business.
Niche Market defined:
A {b]niche market is a focused, targetable portion of a market.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers.

'A need for a product or service that is not being addressed by mainstream providers.'

So there is no longer a niche market here. As such diversify or move on. ROI? How does R&D, in this instance, lead to any ROI? Longevity, Perserverence and Diversification are the name of the game, else-bail.

Reply by Ndwa on 5/24/06 12:51am
Msg #121877

Nice break down ML... n/m