Posted by KARA/NJ on 6/19/13 8:14am
Msg #473938

Raising rates with large title companies

I have a general question...Have any of you raised your fee with a larger title company and noticed a significant decrease in business? My expenses have recently gone way up with the purchase of a new car and added insurance. I am concerned that if I raise my set rate that the phone will stop ringing. Would appreciate any input.

Reply by MN on 6/19/13 8:53am
Msg #473942

If they value your services they will meet your pay. I know what your talking about on expenses. Our expenses have increased and I noticed many title company's have been offering 20-25% less.

Remember not all business is good business.

Reply by KARA/NJ on 6/19/13 8:56am
Msg #473943

This particular company keeps me pretty busy. I am at the low end of $xxx with them and have been for three years. I worry that I will "cut my nose to spite my face" LOL

Reply by 101livescan on 6/19/13 9:04am
Msg #473944

It depends on your volume. It could go the other way, too, where they use you less at a higher rate but use others for a lower fee. I work for two title companies who pay me well. I've worked with them for years, but I won't risk raising my rates because there are others six deep right behind me to take my spot.

It's a risky gamble! Best wishes, hope it works for you.

Reply by janCA on 6/19/13 9:16am
Msg #473947

I agree, Cheryl. A company I have been doing business with for a good eight years or so, decided to lower fees in the years following the recession. Since I had a good working relationship with them for many years, I went with it. Now that business has really picked up, and business costs have almost doubled, I decided to raise my rates with them to what other title companies are paying me. I received a loan package from them yesterday with 28 signature notarizations, with the majority of certificates not CA compliant. That did it for me. I wrote them an email and said either my fee goes up to this higher level, or I will have to sever ties. it's just not cost effective anymore.

Reply by notarydi/CA on 6/19/13 9:38am
Msg #473949

I have a client that consistently keeps me busy. I give them the discounted rate of the low end of $XXX. But, they keep me working constantly. I make up for it with a client that pays the high end of the range and have no complaints paying that. It seems to balance out. Additionally, I try to market for new clients at a higher price point. I do think more companies are trying to offer assignments as often as they can at a lower fee. Just gotta hang tough with what works for your clients and marketing area.

Reply by ME/NJ on 6/19/13 10:50am
Msg #473959

As stated it can be Risky

You have set your rate in this industry going up is a hard battle, if it is a national company signings will go down because every company has 4 back ups that cover our area and will work for less. You live in my area and know this. Companies being loyal is a thing of the past, get the job filled as fast as they can.

If it is a indi company you may have a better chance of a small increase. Since I have been so busy I am sure locals have gotten work from my other clients,

What you have to ask can you live with the loss of that work every month if you raise rates? Lose 1000 dollars in work over 10-20 dollar increase. Risk n Reward in my book the reward has to be worth the risk.

Reply by Sandra G Holland on 6/19/13 11:25am
Msg #473965

Re: As stated it can be Risky

Years ago, when I was an employee and not self-employed, I read books on being an employee, asking for a raise, etc. The advice was so good that my supervisor told me that he was impressed with how I asked for a raise. The advice was to cite business rather than personal issues (not the new car unless you can make it a business issue).

In the years since, I have read many books on doing business. I would mention to the particular companies involved that, since prices of (specific items) have gone up, "would it be possible for you to raise the amount you pay me to $_____?" Note that it is not a demand. Emphasize how much you enjoy working for them because of their nice people, policies, etc.

You might have to ask this when you have only certain kinds of assignments and still go with the smaller amount. It might be that others who work with them are already getting that amount. If they say no, then tell them to please consider it in the near future because it would be so helpful. Tell them what it is that you think makes you go in the hole (time on site, distance, etc.).

I hope this helps and that it works for you.

Reply by KARA/NJ on 6/19/13 11:46am
Msg #473969

Re: As stated it can be Risky

Thanks to all that replied. I value your opinions and won't make any rash decisions.

Reply by ToniK on 6/19/13 12:16pm
Msg #473976

I raised my rates in January. But unless you have some advantage to others in your area, you might be able to get away with it.