Npross, respectfully, I have to point out what I think may be some major flaws with your jeans theory. ( Msg #354241 )
{* $150 vrs $75 is a 50% discount -- a 20% discount would be $120}
You are assuming that both places:
1) have the exact same pair of jeans for sale at vastly different prices 40-50%+ difference in price* (and both will provide the same quality, comfort, level of 'service' and 'knowledge')
2) are in fact located next door to each other (so the travel is exactly the same)
3) and that both pair of jeans are one size fits all
A knowledgeable SA, with a high level of skills in multiple areas including, but not limited to, customer service, attention to detail, professionalism, willingness to see that the borrower(s) questions are answered to their satisfaction, the knowledge and people skills to ensure that their job performance has actually added to, rather than lowered, the borrower(s) overall opinion of the company they have chosen to trust with, what is for most people, the largest single monetary transaction they have ever or may ever make is one kind of SA.
That SA knows that what they bring to the table is worth what they are asking people to trade for the fee they are charging.
Women aren't willing to pay $2K+ for a real Prada bag because it will hold more than a brown paper bag one might find at a local grocery store checkout counter. There is something to be said for quality and reliability.
Now a notary that may show up 'when they get finished with the kids basketball game', show up in sweats, doesn't even bother to view any ID, shoves the papers in front of the borrower while impatiently holding the corner so they can yank it out and replace it with another one, all the while repeating "sign there” or "initial here", doesn't have the slightest clue what a HUD or TIL is, and couldn't explain the difference between an APR and a Note Rate when the borrower(s) asks so they say something like "you got 3 days to call your lender and have them tell you the difference, now sign here so I can get back to my kids pizza party". The kind of notary that is in such a hurry they miss signatures, don't ensure the borrower(s) even sign the docs properly or even at all, partly because they don't know what they are doing (lack of knowledge)and partly because they just don't give a rip. After all, it's only XX and that's beer money anyway (never mind that when all the true expenses are added up the signing cost them out of pocket XX-$5 or $10 and they realize this is their true profit after page 80 of the 150+ page doc set). The type of notary that when they rush out of the borrower(s) house the borrower(s) are literally thinking, "WTF have we done? This company (the lender) cannot be as good as we thought."
Now that notary, masquerading as a SA, doesn't know the first thing about being a SA, business or real profit margin. They are the ones stealing from their 'full time' employer using their computers, printers and paper to subsidize their "other" job. (I leave the morals question on that section alone) They have no idea what a professional fee for the truly important job of a SA should be. They think the $50-65 is awesome pay for only 30 minutes of work (oh yeah, they bought into that lie as well) Now THAT notary is worth less than the $5-10 "profit" they "earned".
The quality of dollar store furniture is a far cry from that of furniture from Ethan Allen. Again, there is a reason for the price difference between the two.
I learned a long time ago that in sales, you get what you ask for. If you ask for one price (normal fee) then quickly accept a 50% discount or worse offer that amount even before the buyer has said a word, you will get just what you ask for, the blue light special pay for your full service quality.
Travel to the X number of closings I would have to accept at the lower price to earn the same for the number of signings preformed at my regular fee not only add cost to my auto and other fees (been stated on the board many, many times over) but one other thing that I don't think I have every added is that quite literally the more time I place myself behind the wheel and on the road statistically increases my chances for accidents or worse. Former life insurance agent thoughts seeping in a bit. Yeah, I know, some will think, that's just crazy, tell that to the guy or gal you read about in this morning's local paper that died in an auto accident yesterday. I'm sure they too thought they would make it home as well.
As for me, I turn down the bargain hunters which has literally opened up times that I have accepted other professional offers that I would not have been able to had I been answering my phone as if was the Blue Bat signal sale phone. I would have had to accept anywhere from 5-6 bargain basement offers to make (profit) what I did by knowing that what I offer is worth what I charge. After all, the borrower is STILL paying the same amount if I go or if the less than 'chatty cathy' in sweats shows up.
I'm not saying that my description of the notary above is a description of all people that accept the lower fees. I am saying that some of these middle man companies couldn't care less if it were as long as they accept the low fee and they make their $100-$150 for making a phone call and sending a few emails.
Defiantly, everyone has to run their own business their own way. I guess my issue is that anyone that tells me they are making true profit accepting the $50-65 signings is not truly adding all the true costs in the equation and some have even been on this board touting the "great" revenue of the $50/signing and don't understand others that say they don't make any profit on the $50/signings. Only to expose themselves later on in the thread as a thief that is stealing from their "day job" because they are using others computers, paper, printers, toner, and other material. Or that she bragged about the great pay of 6 or 7 of them in one day, but forgot to acknowledge that they were all in one office 2 miles from her house and all she did was show up, the docs were already printed and several of them were back to back. Yet she was trying to convince others that they should accept these offers even if they had to travel to 6 or 7 different homes in several different counties because they could make a profit.
I'm not saying you are doing this, but for the ones that have done just that while trying to convince others they should be accepting these ridiculously insulting offers, get real! Anyone could make "good" money if they were stealing everything necessary to work this business on a daily basis. duh!
Times are tough, but if you think consistently lower your fees is the answer, let’s ask some of the mom & pop businesses that Wal-Mart put out of business with that strategy how that worked out for them. Maybe we could even leave some of our business cards at their checkout counter......on second thought, probably not.
|
