Mobile notaries often set low fees to attract clients. It’s a common practice among nearly all new businesses because it can indeed attract new clients quickly. People also see big companies like Walmart or Target succeeding with price cutting. But those companies are not big versions of small business. Big business and small business are entirely different in how they operate.
Low Prices Hurt Income
The fact is that price cutting can ultimately keep a small business from ever growing and succeeding. The owner soon gives up in frustration.
Example of Price Cutting and Income
Here’s a simplified example of how price cutting can affect income. A notary charging $5 per signature earns less than one charging $15. For example, notarizing 10 documents daily at $5 yields $50. At $15, the same work brings $150. The low-price notary earns $12,500 annually on signature fees, while the higher-priced notary makes $37,500. This $25,000 difference shows the cost of underpricing.
Below are more examples of how being the cheapest mobile notary can prevent business growth and satisfaction.
Low Fees Damage Reputation
Clients judge value by price. Cheap fees signal low quality. A notary charging $5 per signature seems less skilled than one charging $15. Clients trust higher-priced notaries more. They assume these notaries offer better service, a better experience, and more expertise. Low fees can harm a notary’s reputation and push clients to competitors.
Low Fees Attract Demanding Clients
Low prices tend to attract demanding, challenging clients. They often demand free extra support or services beyond the scope of the original notarization services. They may not respect your time boundaries. Price sensitive clients are not loyal…they will switch notaries as soon as they find one that’s cheaper.
While you want to avoid low cost pricing, in the beginning it can be a way to get your feet wet in the industry. Just be sure to use this tactic with caution and to have a plan for moving beyond it.
Undervaluing Hurts Client Perception
Price shapes how clients view a notary’s worth. Low fees make services seem basic. Clients may doubt the notary’s professionalism. Higher fees suggest confidence and skill. A notary who charges fair rates stands out as an expert. This builds trust and repeat business. Setting prices too low risks losing clients who value quality.
How to Price Services Right
Notaries must research local rates. Check what competitors charge for similar services. Factor in travel time, fuel costs, and expertise. A notary with years of experience can charge more than a beginner. Communicate value to clients. Explain why your service justifies the price. This approach builds trust and supports higher fees.
Grow Your Business with Expert Guidance
Pricing is one piece of a successful notary business. Marketing, client relations, and operations drive growth and these skills need to be mastered through experience and education. The Secrets of Notary Success, our online notary course, teaches these skills. It guides notaries to set fair prices, attract clients, and build a strong reputation.
For personalized help, our one-to-one notary mentoring via Zoom or in-person offers direct support on any aspect of the mobile notary business you’d like to cover. Both of these tools help notaries avoid the trap of low pricing in order to build a sustainable business.
Take Action Now
Underpricing costs notaries money, reputation, and client trust. Set fair rates to reflect your value. Use resources like The Secrets of Notary Success and mentoring to grow your business. Start today to build a profitable, respected mobile notary service.
