I have never figured it out down to the minute in time, or down to the last sheet of paper, in costs, what the exact time/costs are for me to do a signing. My thinking although perhaps sewed, is simple. I spend less time, and it costs me less to do one $125 signing, than three $50 signings. So even though I gross more on three $50 jobs, I make more on one $125 job. I think I actually make money on a $125 signing, and lose money on a $50 signing. So if I lose money even only $10, why would I do one? And more importantly why would I do 50? The economics of scale work with some businesses, and not with others. Volume works for a SS because they have mostly fixed costs, where it may not work for say a Trucker. If he loses money on one trip, he loses ten times more on ten trips. Volume discounts do not work in this business.
I think my average time to do a closing is about three hours, some more some less. As far as costs…… figuring in vehicle cost, equipment, office supplies, phone/fax/computer lines, advertising, licensing, insurance, gas…and everything else….Heck..I just don’t really know? I may be losing money at $125 per. The trouble with this business is I work from home (I don’t rent an office) I use my car (I don’t rent one) Some of the phone, and computer stuff I already have. If I had to buy all this ‘separately’ I could find the ‘true costs’ involved.
The bottom line is that few in this business (except for maybe attorneys in attny states) really know, or calculate these ‘real’ costs. Many of us are part timers, doing this for pin money, and as long as some are willing to take $50 signings, there are those who will offer $50!
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