response to ALTA proposal

Don't believe any of that BS until you talk to the lender directly. They are your client, not the third party trying to win points at your expense.

Tomorrow morning is too soon to respond after waiting three weeks. It's a holiday weekend and just take some time off. It will be clearer and easier next week.

I would have to say something to the effect of "Thank you for your offer, but I have determined from past experience that it is not sound practice to change my fees once I calculate them. I will be happy to perform the survey at the previously quoted fee."

He!! NO comes to mind.

You made them an offer. They didn't like it. Unless you are really, really hungry say a bunch of really nice things to them and about them then politely hold your ground. It's highly unlikely that anyone else involved in the deal dropped their prices by 40 percent. If they really have someone else willing to do it for that much less, let them learn the error of their ways the hard way, through a bad experience.

Just yesterday I spoke with a lady in need of an elevation certificate. She wanted a price. I gave her my price. She immediately responded that she had found someone else who had offered to do it for less. I immediately responded that she should do what she feels is in her best interest. Besides, I NEVER drop my price on an elevation certificate. There is already too much risk for the money involved.

The key principle to remember is you never cut your price without a proportional reduction in value provided.

Figure out what you can cut from the service requested. Ok, I feel silly having written that sentence. Of course your client will insist on the full service. That is the point at which you can ask what service they wish to cut.

Once you have had that conversation where they understand that your fee and their value are connected, they should be much more receptive to considering your full fee... because they want the full value.

Larry P

I'd stall. Sounds like they have too much time on their hands.

I'm sorry. We may have mis-communicated. We are Land Surveyors.

Not a financial institution. And we don't do financial negotiations.

Thank you for your inquiry.

XYZ Land Surveying

Hey, it's a sign of the times. There are surveyors that will do it for 40% of your price and make a good living at it.

Same thing happened to me last year. I did an ALTA for a good client of mine. He needed another on a separate property and called me for a price. He mentioned that he was using a different lender. I gave him my price, $6,200, and he called back and sais that the lender had their own people and were only going to charge $3,600.

I explained that there is a problem in our profession called "racing to the bottom" and I wasn't participating. I understood his position as a business man but I couldn't and wouldn't compete that way.

So it goes. MacDonald's made a lot of money selling cheap burgers, Wendy's made a bunch selling mediocre burgers, but better than Micky D's. Our local 5 star restaurant makes money serving quality food. I would rather provide quality service to those that appreciate it than cheap service.

> ..., but they have asked if you would consider conducting the survey for $X,XXX.xx? (which is 40% less than my proposal)
I think it likely that if there was a satisfactory bid for 40% less then that surveyor would get the job. There is either no such bid, or there is something wrong with that bid. Like the title company has had more than one bad experience with that surveyor.

So you probably don't need to lower your bid to get the job, and I don't think you should, but it might be good business to exercise a little salesmanship. Offer to reduce your price 5% if they remove Table A items x, y, z for example. Or a 10% discount if they pay in advance. Or maybe if they extend the time frame. Maybe do the basic ALTA for 40% less, then the Table A items at hourly rates. And so on.

Some clients are in it for the thrill of the deal. Giving that need a little attention, without giving in, can seal the deal.

A similar situation was discussed in early 2012 here:

http://beerleg.com/index.php?mode=thread&id=140100#p140164

I too was asked by a client to reduce my fee. I sent a reply email similar to Ianw58-2's post and a few weeks later, was authorized to do the work for my original fee. I'm sure it will not work every time, but it just may.

Ken

I used to occasionally browse an antique store that was very cool and had a lot of old surveying equipment. I overheard once another guy in there who saw something he liked, and he asked the owner if he would consider a lower price. The Owner responded absolutely not and said that he never changes the prices on his items except occasionally when the old price tag falls off. And even then if he does change it, it changes to a higher price.

I agree to stick with your guns. I advise never a "hel1 no" response and to be respectful If they were never rude. Some people always operate under the philosophy that you always try to bargain for a lower cost, some others might not understand why they should buy a product from one source when another source will give them the same product for less money (they may not know the difference). Others might just be the jerks you immediately suspect them to be. Regardless, I would think that maintaining professionalism is always your best choice.

I would not contact him, I would wait until he contacts me again and let him know that there was nothing for me to say to such a proposal.

I would rather spend my time working for clients that appreciated my work than to spend any time for those that want me to break even on jobs and waste my time in an attempt to make them understand.

Last week a client came by and wanted me to explain and help him prepare a description to a property he wanted to buy without getting a survey. This man was a doctor and could easily afford both and was expecting something for nothing from me just so he could say that a surveyor helped. BTW, he was only paying the guy 1/3 of what his property was worth.

I sent him to a lawyer that has asked me to calculate the unknowns for tracts he was creating on paper for deed descriptions and had offered me $25 a calculation.

Then there was the Realtor that came to me and offered me all her work if I could help her out of a bad situation. I bought my first GPS to do the job. She wanted my expertise because it was a boundary nightmare. The title opinion had an incomplete description to work from and nobody else saw that when they compared to what was on the ground. She has never given me another job.

Don't give you talents away. There are clients out there that appreciate good work and are willing to pay accordingly.

0.02

> .... I NEVER drop my price on an elevation certificate.

You can't. That's why it's called an "elevation" certificate. The only thing you're legally allowed to do is elevate the price.;-)

If you don't value your time or service, nobody else will.

> ... I sent a reply email similar to Ianw58-2's post ....
I wish Ian Wilson participated here more often.

Ask if the attorney and real estate agent involved have likewise slashed their rates by 40%.

Why don't clients ask lawyers if they will provide their services at discount rates? The answer is simple: The attorney's hourly rate is what it is and the job takes the amount of time that it takes. They rarely negotiate, and if they do, you probably would feel more confident with another attorney. Most have too much respect for the value of the professional service they provide.

What's that say about surveyors who are willing to cut their rates to get a project?

:good::good: