Posted by Kat2857/CA on 9/11/13 7:58am
Msg #484109

"Times are Tough"

Have to wonder all these SS asking us to take a lower fee because times are tough, are they receiving a lower fee too. I doubt it.

Reply by rolomia on 9/11/13 9:12am
Msg #484116

Articles on SOFI BLOG confirm slow-down. Links follow-

http://richardlaw.wordpress.com/2013/09/09/4538/

http://richardlaw.wordpress.com/2013/09/10/4548/

Reply by LeeA on 9/11/13 10:13am
Msg #484122

SLOW DOWN


First of all, I have been in the title industry over 30 years, and have ran a SS and abstracting company for 9 years now.
I have never ever seen it like this before. Our business on both sides have gone down 75% percent over the past 2 months, and this is a cross the country.

I read a lot of your post about SS companies. I can tell you we are feeling the slow down as well. I have been asked to cut our fees, which I have, however, my costs have not gone down either, I am trying to not lay my staff off, which title companies and banks are doing.

Just because someone new to the board doesn't mean they are new to the industry. Its all economics, supply and demand. The less Supply the lower the demand. I'm not saying you should accept $50 or $75 dollars. But some people have too, to feed there kids pay there bills.

Don't shoot me for saying this, I am just stating the facts.

Reply by Treasure Valley Notary - Tina on 9/11/13 10:58am
Msg #484129

Business Owner vs Employee Thought Process

Hi LeeA,

Experience as an employee is much different than experience as a business owner. I don't know which side you are actually on, but from your comments I am going to have to guess the employee side of it.

$50 to $75 may seem ok, when everyone is cutting back, but it's not. It takes my profit margin to basically $0, and maybe even into the negative. And then I have to ask why would anyone work for $0. This is where a good business plan and Profit/Loss Statement comes in handy. Everyone who runs a business needs to know if they are profitable or not. And what that line is. I don't even consider $10 an hour as a business owner profitable. One is better off getting a J.O.B. And the thought process of . . . it is better than nothing . . . totally undercuts the industry (don't care what the industry is). For what ultimately happens is that the business "owner" who thinks like this, runs himself into the ground and quits. Leaving a mess for the true business owners to now deal with.

We are seeing this with the fast food industry. A lot of $1 menus are now gone or are very tiny in comparison to what they were a couple of years ago. It is a lost leader for them. And they were hoping to get you in the door with the customer upsizing. But that wasn't happening, so their profit margins were too low. Running a business costs money. We do it to make a profit - which hopefully means making a living, plus some more than that. I personally am not a charitable organization, nor will I be.

If someone truly thinks that the $50 to $75 is going to pay their bills, or even feed their kids, they really need to rethink being in business for themselves. It is not a profitable living at those rates.

Don't shoot me for saying this, I am just stating the facts. Yes, I meant to be blunt. Because sometimes it just has to be said.

Reply by Stephanie Santiago on 9/11/13 11:21am
Msg #484133

You are so correct, Tina. n/m

Reply by sueharke on 9/11/13 11:31am
Msg #484142

Re: Business Owner vs Employee Thought Process

I am replying as a CPA to this post. I have prepared one too many Schedule C tax return where people ask "why didn't I make a profit?" Other questions include, "I am owed $0,000 and don't know how to collect the money due me?"

Worst of all, the people bring shoe boxes of accounting records and expect me to organize their accounting records. My fee for booking services is $75/hour, in addition to the fee for tax preparation. It is amazing how many people choose to come back after their records are organized or try to find a cheaper tax preparer. Many times I might see the same person when it is time to prepare the amended return or fight the audit with the IRS/State taxing agency if the choice was another tax preparer.

My favorite answer to this is one that has been posted many time by myself and other people - go to the SBA and SCORE and learn about your business and how to price for your services.

Reply by LeeA on 9/11/13 11:37am
Msg #484147

Re: Business Owner vs Employee Thought Process

I am the Owner of SS. Company and Abstracting Company. I have 20 employees and have always operated in the Black. Last year we did 2.5 million in Sales. So I do understand Business and have a Degree in Business and my Business Partner has a MBA in Finance.

You missed my point. I stated some people have to do it for $50.00 or $75.00 I didn't say they would be wise. I am glad you don't have to do it, but some people do, that was my only point.

I have seen a lot of people who stated on this board they will not do them for less than $125.00 and I can tell you they do them for us a lot for $90.00 or $100.00.

Reply by JanetK_CA on 9/12/13 1:30pm
Msg #484371

Well said, Tina, & right on the money! [Pun intended... ;>)] n/m

Reply by HisHughness on 9/12/13 2:01pm
Msg #484380

Yeah, well, here's my take on it.

SS orders drop 25 percent.

NSA orders from SS naturally drop 25 percent, too, resulting in 25 reduction in income. But on top of that, SS asks NSA to reduce fees 25 percent so SS does not experience any reduction in income.

Result: SS income remains constant. NSA income drops 50 percent.

Reply by jba/fl on 9/12/13 4:30pm
Msg #484400

Re: Yeah, well, here's my take on it.

My take:
SS asks NSA to reduce fees 25 percent so SS does not experience any reduction in income.

Result: SS income remains constant. NSA income drops 100 percent, due to kicking SS to curb.