Increasing Fees

[LordofTexas]

A lot of good advice. It's that simple, if you're worried about making your consistent clients happy; inform the consistent clients of a increase. If they ask why, THEN give them your reasons. If it's a better client, then you should have no problem lowering your fee back to the previous with THEM when gas or whatever does get better. Just indicate the current new few to the new clients. No explanation needed.

 

[tom mack]

Property Economics; Perception is everything. I admit, I am a lurker in this forum. I don't know you personally, however, my perception of your posts is that they consistently get personal and take the thread in a direction that is off the topic. That is just my perception of your posts. I also stated that I didn't want to discuss actual fees. If there is a template that anyone would like to share, please post or contact me. I’m just trying to utilize the forum for some constructive help. Thanks c w d.

 

[PropertyEconomics]

Property Economics; Perception is everything. I admit, I am a lurker in this forum. I don't know you personally, however, my perception of your posts is that they consistently get personal and take the thread in a direction that is off the topic. That is just my perception of your posts. I also stated that I didn't want to discuss actual fees. If there is a template that anyone would like to share, please post or contact me. I’m just trying to utilize the forum for some constructive help. Thanks c w d.

Please point out where I got personal? I dont know how you can raise your fees without discussing your actual fees.
I tried to post to you constructive thoughts ... my apologies if you took them the wrong way. There was nothing personal in my post to anyone.

 

[JTFAPP]

Went on 1 insp this morning. Likely $20 in gas, let alone wear and tear etc.

 

[timd354]

I have never announced that my fees were being raise. How many companies do you know of that inform their customers that they are raising prices. I don't expect my pest control company, gas company, bank or supermarket to notify my of their prices increased. If you are only doing a small increase of $25.00, just do it and don't worry about it. I have been in the business since 1994 and have raised my fees from $250 to $350 in small increments over the years. I have never had a company come back to me and argue my fees. Make the move.

If I was a regular customer who sent you a significant amount of busniess at a certain fee and then you raised your fee with no notice, that would highly irritate me. However, if you came to me and explained how your costs have gone up due to the price of gasoline, etc. and explained to me how you need to increase fees by $25 or whatever, I could understand and accept that.

 

[Ray Miller]

I don't announce my fee increase to any one, I just raise my publish fees on my web site. that is my base fee, some one calls a will quote then the fee for the job.

In my past farrier pratice I did let my steady year round clients know that they would be facing a fee increase on my next visit. The new clients or those that called you every 4 to 6 months never gave then notice. Only the ones that I was at their place ever 6 to 8 weeks. Special work fees was set after looking at the horse and talking with the vet. In some case fee's were better then a $1K for the first shoing and special shoes, then a little lesser rate for reseting that shoe in 4 to 6 weeks.

I think the appraisal business is a bit different.

 

[The Warrior Monk]

One of the main things that causes problems is that the fees many charge per assignment are predetermined; i.e., the client has the "fee list." So any change to the fee list is a major issue. If you change yours, and others don't, you're off the list.

We no longer send out such lists (we haven't in years). We quote per assignment, which covers our time and our costs. If our costs go up, we charge more; if they go down, we can charge less.

 

[Bedrock]

If I was a regular customer who sent you a significant amount of busniess at a certain fee and then you raised your fee with no notice, that would highly irritate me.

timd354,
Why would I let anyone tell me what I can an can't charge for my work. I am a self-employed business person. I don't need to ask someone's permission or get their approval to increase my fees. I have dealt with many clients over the years. Some good, some bad. I have only had a few clients call me and complain about my fees. I don't tell them what to charge their borrowers, why would they tell me what to charge. Most of my business is COD. I ask all my client not to quote appraisal prices as they typically do not know what I would change for a particular property. The clients who have called me to complain are usually the one who quoted a price to the borrower. I deal mostly with the borrower. Based on the information they give me, I quote a price directly to them. If that price does not match what the client told them, that is when I get a call. I have asked my clients to work with me. My client don't run by business, I do. That's the biggest problem with appraisers. They let their clients tell them what to do, right down to the fee.

Chris Valianti

 

[al002kim]

Wow, you guys are so fortunate to negotiate higher fees in today's market... I know the gas are going to rooftop but I'm afraid ask clients for an increase, they might go to other appraisers who are willing to work for little...

 

[JTFAPP]

In every business, theres always someone less. When MB or Realtors comment on an appraisal fee, its hard not to laugh. Not that they dont deserve the Thousands of dollars they charge a client, but when you look at the ratios its pretty ridiculous to take any complaints seriously.