Posted by rengel/CA on 6/28/10 5:47pm
Msg #342831

Crazy low-baller inspection company and great response!

Here is the email I received today:
Dear Contractor,



Low-Balling Company is a Mortgage Servicing company with its home office in Florida. Our firm has recently executed a state-wide contract with a national servicer to service default loans via conducting single page monthly inspections (occupancy/condition reports) throughout your state. We are contacting you to extend an opportunity to submit your company information and coverage capabilities if you should be interested in receiving monthly inspection work from our firm.

Due to the competitive nature of Field Services industry and the RFP processes with the banks and national firms, the monthly inspections that we have to offer a field rep pay between $4.00 to $5.00 a piece including 4 photos / we do have a substantial volume of inspections in your state. Our team has been active in the Mortgage Field Services industry since 1985 and are continuing to grow rapidly. Our work flow for your state is scheduled to begin on 7-18-2010.



If you are interested, please respond promptly by completing the attached questionnaire and returning it along with any attachments requested as well as your coverage areas directly to me via email at [e-mail address] .I will be reviewing documentation and contacting you with any questions I might have within the next two weeks.



We look forward to your positive response.

Reply by rengel/CA on 6/28/10 5:48pm
Msg #342834

Here is one response,

With all due respect and with complete sincerity….You have got to be kidding!

Pricing like you quoted is what is ruining the market. Accepting that low level of pricing is training the banks and others to think it is acceptable…It is not. It is an insult to ask professionals, or anyone for that matter, to do an inspection for that paltry sum in this economy. The field workers and inspectors deserve their dignity too. You can barely start your vehicle for that amount, must less cover overhead. No one in their right mind would accept that type of assignment…..and volume does not make up for the low price…ridiculous pricing is ridiculous if it is one job or a hundred jobs. You may be growing rapidly, but it seems to be by undercutting legitimate and reasonable pricing.

We truly mean no disrespect; however, it is so frustrating that this market is being ruined by the “competitive nature pricing” mentality. If you ever come up with a more realistic payment schedule, please be assured that we would be happy to provide widespread coverage by good people who are hard-working and honest for your company.

Reply by rengel/CA on 6/28/10 5:48pm
Msg #342835

Will they ever learn? n/m

Reply by MikeC/NY on 6/28/10 6:29pm
Msg #342845

"Due to the competitive nature of Field Services industry and the RFP processes with the banks and national firms, the monthly inspections that we have to offer a field rep pay between $4.00 to $5.00 a piece including 4 photos / we do have a substantial volume of inspections in your state."

I love these guys who keep playing the "volume" card...

It's impossible make a profit if it costs you more to provide the service than what they're willing to pay you for it. If everyone would start adopting this as a mantra and refuse these offers, the low-ballers will eventually get the message.

Unfortunately, there are too many folks willing to do anything for a buck without considering what it costs them to make that buck, so we'll continue to see these insulting offers...

Reply by Hugh Nations Signing Agents of Austin on 6/28/10 7:05pm
Msg #342859

Reminds me...

of the Texas Aggie who set up an Internet business selling dollar bills for 98 cents.

"How do you do that and make a profit?" a University of Texas grad asked him.

"Volume," the Aggie replied, "lots of volume."

Reply by MikeC/NY on 6/28/10 7:13pm
Msg #342864

Re: Reminds me...

I'm guessing you're not a fan of the Aggies...

Reply by BrendaTx on 6/28/10 7:15pm
Msg #342867

Questionable characterization, but great analogy! n/m

Reply by SheilaSJCA on 6/28/10 10:36pm
Msg #342926

I got it too; showed up in my spam folder where it belongs! n/m

Reply by Jack/AL on 6/28/10 10:39pm
Msg #342927

Duh.........

"$4.00 to $5.00 "a piece"

How big is a piece? Enough "pieces" at $4.00 to $5.00 might make a nice whole.

Reply by CaliNotary on 6/29/10 1:41pm
Msg #342978

Re: Duh.........

If it's all of the houses on a single street where each inspection takes no more than 5 minutes and you can just walk from house to house, that could be a nice whole that makes it worthwhile. Anything beyond that level of ease, hell no.

Reply by MW/VA on 6/29/10 8:30am
Msg #342946

Haha! I love the technique of insulting low fees with

promises of volume. What fool would be running all over the place for $4/$5 fees?