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| Pricing, Fees and Billing ... Oh My. https://ftp.fugitiverecovery.com/forum/viewtopic.php?f=13&t=9785 |
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| Author: | northstar [ Fri 27 Mar 2009 08:57 ] |
| Post subject: | Pricing, Fees and Billing ... Oh My. |
During my research and due diligence I am working on the pricing schedule and structure. So a few questions: How do you base your rates? Is it a percentage of the bond? Is there a minimum fee? Do you have a max rate? Do you use a flat rate or a contract rate? I am finding that there is such an over population of "registered" Bail Enforcement Agents in Arizona that the Bondsman are getting people to walk in and do recoveries for $100.00 a pop. Of course there is plenty of opportunity to stick it out and develop a market and demonstrate a higher level of service to the bondsman. But a $100.00? Hmmmm |
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| Author: | abeaglepi [ Fri 27 Mar 2009 13:48 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
It is generally accepted that a BEA is paid the premium amount of the bond for a skip taken back into custody. Ex: $5000 Bond, $500 premium. So, the BEA gets $500 when the fugitive is returned to the appropriate jurisdiction. You have to remember, after bond forfeiture the Bail Bonding Co. is responsible to pay the courts the full face amount of the bond. So you see, paying $500 to a BEA is much better than $5000 to the courts. I have seen situations where Companies will pay more than the bond premium to BEAs, especially if all extensions have ran out, and forfeiture is imminent. I would be very, very, leery of anyone that would do a recovery for $100. Unless of course its a $1000 bond. Always remember, you generally get what you pay for. What seems to be a "good deal" could cost you your entire business, and possibly more. |
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| Author: | northstar [ Fri 27 Mar 2009 16:50 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
Thank you Josh, I totally get the traditional 10% or premium goes to the recovery agent. However I am facing a locality issue, I think. We have over 15K Registered BEA in Arizona, anyone with $24.00 and fingerprints can become registered to do Bail Recovery. I am looking for comparisons to other areas and how you bill. Thanks, |
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| Author: | OrangeCountyBounty [ Fri 27 Mar 2009 21:46 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
Kathy feel free to comment as what I am about to go into started with you.... My partner and I are starting a hunt this Sunday......it involves a 10-hour drive for a "meet halfway" multi-state delivery process if/when we find him. We are charging 15% plus expenses. My partner is handling the business end but I am pretty sure the rate is due to the delivery distance. |
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| Author: | abeaglepi [ Sat 28 Mar 2009 09:29 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
Quote: I am looking for comparisons to other areas and how you bill. Can you give a little more insight into this? I assume what you are wanting to know is how do a company and an agent go about working together (possibly if they are in different regions or states?) in reference to deciding on a payment amount, and at what time is that paid to the agent and how? Am I correct on this? |
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| Author: | SpanielPI [ Sat 28 Mar 2009 09:43 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
The industry and economy vary, widely from state to state, and in some cases even by city to city. So by gathering your intel regarding fee schedules, it would be off kilter because you haven't factored those 2 variables into your equation. Secondly, when attempting to establish a long term relationship with bonding companies, you have to be somewhat fair and lenient in your pricing. You may demand and collect a full premium from a 1st time customer, but it may be the last time he/she calls upon you. It's like playing poker...you may force a large win and anger everyone else at the table...thus blackballing you from ever playing with them again....or you can manipulate your winnings a few, small pots over a long time frame. In the long run you will make more money than the 1-time only major kill. So by establishing a fair, professional rapport with a few clients, then soon your reputation will spread and you will get phone calls from other clients. This industry is no different than any other from a marketing concept of building your reputation 1 successful client at a time. |
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| Author: | Kathy [ Sat 28 Mar 2009 22:02 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
Tom, the nationwide accepted norm is 10% of the bonds, but everything really depends on the bondsman, the BEA, and the expense. You have it right in that the travel increases the amount. Northstar, what is charged is a complex process. As has been posted, 10% is the alleged accepted norm, but I have been paid more or less. It pretty much depends on what you are willing to accept. If you start out low to get business, you can expect to continue to get paid less. If you charge more, the bondsmen will accept the lower offers, and use those until they aren't successful. An example, I get a file from a bondsman with basically no infol. I have access to various databases or info that I pay for, so find the info to make the apprehension. I expect to get paid for the info that I am able to provide. Alternatively, I get contacted by a bondsman and am given the location of the SIQ and that is the location where I find him/her. All I did was to use the info given for the apprehension. 10% is the normal pay, but the pay may go up or down from that depending on the actual situation. This isn't an easy question. |
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| Author: | speezack [ Tue 31 Mar 2009 06:33 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
As said already, building a relationship with your bondsmen is imperative... once your clients determine that you are capable and productive they will return to you... pricing is of course important but getting the job done and being fair is up there too... I have a group that I use and some of my friends also use... the group is not cheap... in fact as an example... his normal fee is 20% of anything under 10k.... and slightly less for larger bonds... however, I had a 5k on a skip that left the state... one of my friends had 20k on the same guy... we looked for him for 6 months and couldn't get a hit from anywhere... we got a tip, came down on the tip... discovered that he was in upstate NY.... we called in our man and he squeezed the source for a phone number... got it... left within the hour with 2 of his buddies... the 3 BEA's drove to upstate NY, picked up the guy... and was back at our location the next day!!! I paid him $1000 and my buddy paid him an undisclosed amount on his 20k... I never knew what he paid but it didn't make any difference to me... the bond was due to forfeit the next week so I was ok with the cost.... 3 guys driving to upstate NY and back in 24 hours and making the pickup, then delivering the perp to the jail was worth it in my book. I did nothing but stroke the check. As said, building a reputation in the long run is the key... IMHO. The fact that you have 15k BEA in AZ is unreal... how many do you think are really working or do they just get the authorization just so they can say ............ "I am a bounty hunter" to their girlfriends.... that really does happen often as you probably already know....... Good luck.................... sounds like you have a lot of BS competition to wade through. |
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| Author: | northstar [ Tue 31 Mar 2009 08:09 ] |
| Post subject: | Re: Pricing, Fees and Billing ... Oh My. |
Great reply's, thanks. After many ... many ... more conversations with bondsman I have come up with a pricing schedule I feel is competitive and realistic. With a twist that keeps them happier. Will let you know how it works out. What I am seeing is that the Time Value of Money is what is important here. The more time, the less important. Update on the 15K ... from a person higher up at the DOI, the updated number is 10.5K registered, with several thousand set to roll off at the end of the year and only several thousand more that are being put on usage logs. Trouble is that I can't find that many people in business. Crazy. Regards, |
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