"...even if gas were free." I like that!
Gas prices are not likely to come down anytime soon. I have been hearing reports that gas prices will be going much higher for the summer driving season. Yesterday, I heard that it went up $1 per barrel of crude oil and they were worried about shortages this summer.
However, the cost of gas, nor any other expense in producing a title search has ever been a factor in pricing in this business. The dominant factor by far has been the availability of cheaper searches from competitors. If someone else is willing to do the work cheaper - that becomes the benchmark for setting prices.
We don't have the luxury of setting prices in the same manner as the gas companies. Drive down any street and every gas station is selling gas withing pennies of the others. There is very little effect of competition - and competition is our main obstacle to charging a fair price.
Its not good... but, if you try to explain that you have to raise your prices because gas, E&O insurance, copies, utilities, etc. have all gone up and Abe, Betty and Charlie are selling searches cheaper it really doesn't matter. Just look at the crowds at Wal-Mart - price matters.
Best,
Robert A. Franco
SOURCE OF TITLE
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