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How To Set Your Pricing As A Notary Signing Agent

Without a doubt, one of the hardest parts of starting a professional service is pricing your services.

So you want to quit your full-time, secure, 8-5 job that guarantees you a weekly income to start a signing agent business. You saw an ad in the local newspaper or on the internet telling you how you can earn $100,000 a year. You’ve joined this ad, taken a course, studied the training and are now eager to get started. A few key factors that this course did not teach you were “How to Run Your Own Business”, “Business Etiquette”, “Marketing”, “Research and Development”, and a million and one other things to be successful. Well, I’m not about to claim that I know the million things, but I’ll try to help with the other “ONE”, “Do’s and Don’ts of Pricing; .

If you have done your research you have a good idea of ​​the competition you have, you already know where your competition is and how much they charge. (No? I didn’t think so but I was trying to give you the benefit of the doubt). These are key factors you need to be aware of. If you’ve done this research before, you’re miles ahead of your competitors who have taken the same class as you. You will also find that the majority of your successful competitors have done their homework and chances are they will know that you are entering the industry and also preparing for a major marketing campaign to replace yours. How will you compete for the same market share? If you thought lowering your price was going to do the trick, think again. It can be a great starter gadget, but eventually it will come back and bite you every time.

I’ll start with the “Don’ts of Pricing”. Many who got into this business without proper training and guidance have failed and are now returning to an 8-5 job. I will do my best to help you succeed where others have failed. If you’ve done your homework and learned what your competitors charge, you’re probably thinking, “I’m just going to undercharge them and I should get a bunch of business, and after I get some experience, I’ll raise my prices. “. I know that’s what you’re thinking because every message board I’ve read, every chat room I’ve visited, and every training website I’ve researched regarding signature tell you to do the same. I’ll use an example first, then get into the meat and potatoes of “Setting Prices”. Let’s say you find that the majority of your competitors are charging around $150.00 per signature. You’ve done your math on all the expenses and feel like you can do this job for half of that and still make a profit. So you decide to charge $75.00 per signature, and then after six months to a year, you bump your prices up to $100.00. That’s still $50.00 less than your competitors and your customers will still be happy with your charges. Before you continue reading, I want you to think long and hard about “How viable is this strategy”?

As I have said in previous articles, I owned a very large construction company. Let’s say ten contractors have made offers to build an addition to your home as an office. Entrepreneur 1 comes and says $20,000, entrepreneur 2 comes and says $20,200, and nine out of ten entrepreneurs tell you the same thing within $500 of each other. Contractor 10 says $9,999. If you’re smart, you’ll stop and think twice and probably ask yourself, “What’s wrong with this photo?” Either this guy is an idiot and doesn’t know what he’s doing, or he forgot half the bill like my roof and the ground”. The thing is, you probably won’t be using this contractor. So the too cheap doesn’t work. The other factor of going half price then raising your prices later doesn’t work for that reason either. For ease of math, we’ll say your competitor is charging $200.00 per signature and you charge $100.00 per signature After 1 year you increase your price by $50.00 and are still $50.00 cheaper than your competitors Your customers will NOT be satisfied no matter how you’re cheaper because you just increased your fee by 25% It’s still an increase no matter how you slice it The cheapest technique and raise won’t always get you work or upset your client The other thing you need to consider when charging much less than v Your competitors is that you work twice as hard and spend twice as much gas (double all your efforts and expenses) as your competitors for the same amount of money. Between you and me and any successful business is the path to failure.

It’s much easier to overprice your services and offer discounts to your clients – that way clients perceive they’re getting an offer, and you’re still getting a market price for your services – than to underprice your services in hopes of increasing them later once customers get “addicted” to your way of doing things.

For those of you who have been in business for a while and are well established but are losing business to smaller players in our industry, try offering a little discount to your customers. Tell them “This month, I will be offering you 10% (or whatever percentage you deem appropriate) on all of your closures and will extend this offer to all planners in your department.” Not only did you bring this closer to use you more this month, but you just indirectly asked for a “reference”. if you make 1 more signup that month from a referral or if your client uses you one more time instead of sharing the work with the competition, you’ve got your money back. I bet you not only get more from the planner, but additional planners will contact you. Generally, we don’t tend to refer friends for business, but we certainly tell them about a sale.

My recommendation is to find out what your competitors’ average price is, set your price within the same range, then offer a discount from there. If you thought you could do it for half the price, offer your client a 25% discount for new clients, then a 10% discount for their first 10 sign-ups. This not only allows you to break into the market, but also allows you to give an extended discount and charge the same rate as your long-term competitors, but now you are also helping to make the signing agent industry a viable market for all.

There is always the risk that you will overprice your services at some point. Just keep two important truths in mind. If you’re not charging what you’re worth:

  1. You are guaranteed to burn out quickly; and
  2. You will resent your customers for not offering you a decent living and start treating them like dirt – a sure recipe for failure.

I suggest you go to your competitor’s websites and research the prices. That’s not to say you should charge or copy your competitor, but the prices are there and they’re all over the internet. (Remember my notes on websites, this is another good reason NOT to include your prices on your web pages) take 10, 20 or even 30 sets of prices, add them all together then divide by the number of prizes. The formula will look like this: (I will use 8 sets of numbers and not the actual prices)

Calculate the average of the following set of numbers:

126, 134, 155, 101, 144, 138, 151, 139

Step 1. 126 + 134 + 155 + 101 + 144 + 138 + 151 + 139 = 1088

Step 2. There are 8 numbers in the set.

Step 3. 1088 .8 = 136

This gives you the average price charged by your competitors.

Next, I’ll list some of the things to consider when setting your pricing. 1) Equipment

  • computer
  • Laser printer
  • Laser fax
  • To scan
  • Laptop
  • Cellphone
  • Vehicle
  • Office or home office
  • Desk
  • Stapler

2) Services

  • Internet (broadband if available)
  • Wireless internet (laptop)
  • Cellphone
  • Long distance
  • Secondary fax line
  • Car maintenance (oil changes, tires, brakes, wipers, washer fluid and everything your car will need for repairs)
  • Equipment maintenance
  • Additional domestic utilities

3) Consumables

  • Gas
  • On-the-go lunches and snacks
  • Printer and fax toner
  • Printer and fax drums
  • Paper
  • Pens
  • Newspapers
  • Staples
  • Paper clips of all shapes and sizes
  • Attachments for Docs (depends on what you use)
  • Stamp and/or seal (as required by your state)
  • All the money you spent on training materials
  • All the money you spend and will spend on memberships in different organizations and lists of notaries
  • The time you spend on research and marketing
  • Business cards
  • thank you cards
  • Leaflets
  • Website
  • Software (accounting, web-design, spreadsheets, PDF etc…)
  • Clothing (business attire)
  • Stamps

4) Everything else

  • Time away from home and loved ones
  • Last-minute signings (You’re in the middle of dinner and you rush)
  • Engagements/evening dates canceled
  • Documents late and you’re on the road until 1:00 a.m.
  • Signings canceled and you have already refused 2 signings for this time slot.
  • This list can go on forever, and you’ll learn it after you’ve been in business for a while. You will be upset with clients, you will be extremely stressed, you may have to pay for a message or therapy sessions.

If I forgot something from the list that you think should be included, please let me know and I’ll be happy to add it to the lists above. webmaster@mwna.net

Midwest Notary Association offers a full range of notarial training for signing notaries nationwide. Click on the following link to see a sample video of the Notary Training CD www.mwna.net/trainvid/ [http://www.mwna.net/trainvid]

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