I have received additional emails which make this post necessary.
I AM NOT disrespecting any quality abstractors out there that offer a $35.00 price tag.
I was simply noting what my research has shown me based upon 100's of companies that I have worked with, looked into working with or will NOT work with. I have plenty of FANTASTIC abstracting companies that provide me great turn time - great quality - email - during-the-day-contact method, etc for $35.00.
This was more of a wake up call for those companies that are providing good service but are marking their prices too low. Nobody SHOULD BE offering an insured current owner product for under $50.00. Is that realistic at this point, maybe not, but I still believe that is the low-end.
The reality is that searches are now based at a $35.00 rate and anybody trying to get more $ has got to be offering something spectacular. But from an employer standpoint. It is very difficult to make any money at $35.00. It costs money to run a company. That is something a lot of independents don't understand until they are already in business selling at $35 and can't pay all their bills. I've seen quite a few companies fold because of this exact short-sightedness. Only after being in business for 6 months or so do they realize all the costs.
3 searches at $35.00 = $105.00
2 counties about 60 miles @ $.375 per mile = $22.50
Insurance (?$1.00 per order?) = $3.00
The free deeds (5 pgs @ $1.00) = $5.00
Equipment / Supplies (fax, phone line, service fees, toner, paper) = $10.00
Taxes (just social security at 15.3%, you pay both 1/2's) = $15.00
You get paid $105.00 but it cost you $55.50 so you actually get a whooping $49.50. Oh yeah it takes about 3 hours, so what are you actually left with.
$16.50 / hour
Based upon 1 order per hour you make about $16.50 but what if you are only getting a few orders per day. You actually have to divide the days net by 8 hours. If you get 8 orders and make $16.50 you make $16.50 an hour but if you only get 4 orders a day you would actually only be making $8.25 per hour or a little over minimum wage.
It doesn't seem like anything's left over because there really isn't. You didn't do proper mathematics and research before costing your product at $35.00.
And you are probably struggling to make it.
Robb, Grand Info, LLC
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