With respect to the VM's attempting to cut costs to attract new clients, therein lies the problem. They assume that the abstractor will do the same. As you have indicated they dangle the promise of volume in return for a discount. The volume usually does not last for more than a few weeks or months at most, and then declines. However, they expect the abstractor to continue the volume discount price when there is no volume to justify it. I am all for a free enterprise system, but this induistry seems to run contrary to Adam Smith's view of things in the "Wealth of Nations".

The abstractors in this area have had it. They are either leaving the field or widening the scope of the services they offer to make themselves less dependent on abstracting fees.The price of the current owner search that most of the VM's/Title Companys want is already at rock bottom. Add to that the insane price of gasoline, the prorated cost of e & o insurance and your administrative expenses, and there is no room for further price reduction. This is probably the only industry that I have seen which runs contrary to the price/wage inflationary spiral.

The problem is exascerbated when you add low end under capitalized title company's to the mix.( i.e. Companies which can't pay the abstractor because of cash flow problems and try to fault the abstractor to rationalize their position.)