recovery rates

I'm curious to hear both bail bondsmen and recovery agent's opinion on recovery rates. Typically, the rates are 10% of the bond amount as we know, but some will add extra costs. Also, some will place a price limit on the 10%. For example, 10% of the bond amount or $300 which ever is greater.

So what rates are acceptable and when?

When are extra costs acceptable?

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EX-LE Fugitive Recovery

Arizona

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Do not consider anything for your interest which makes you break your word, quit your modesty, or inclines you to any practice which will not bear the light, or look the world in the face .... Marcus Antonius

I AM Some Folks "KARMA" and A MODERATOR @ FRN

This thread reminds me of my bounty hunting days in Las Vegas. We charged our local clients 10% with a $300.00 minimum. The courts in Clark County had a very low bail schedule. We had to charge the $300.00 minimum fee to make our services reasonably profitable. Bail bonds posted in the Municipal Courts were extremely low penal amounts; most of which were $1,000.00 or less. You might end up spending an entire day working on one assignment. Do you really want to spend all day working only to make $100.00 or less per completed assignment? If you only catch one "wayward client" per day, what is it going to cost you and what is your time worth to you? You must ensure that your earnings are worth your while. You must also consider the "opportunity cost" involved. If you have partners, you will also have to split your commissions between all of your team members. I remember that my team (my 2 partners and myself) had to catch an average of 3 "wayward clients" per day in order for us to pay our bills and make a profit. This was due to the low bail schedules set by the various courts within Clark County and also because of our pricing schedule. I believe that we charged reasonable prices for our services. We also had plenty of work once we got into the full swing of things. After we became well established we were managing anywhere between 200 to 300 forfeitures at any given time. We didn't get that amount of work by overcharging our clients. We provided superior services at reasonably competitive prices; which is one of the many things that potential clients are seeking in a recovery agency.

If you like, I can send a copy of my "Standard Fees" and "Standardized Contract" forms to you. Just send your email address to me in a private message and I'll get them to you.

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Jason Pollock
Owner/Operator
Surety Risk Management
Los Angeles, California
(323) 786-FIND

"Approach is Everything."

Well on my end I charge a flat fee of 10% in state. If the defendant is going out of state, I charge 10% plus fuel cost. But if it's for one of the guys or gals here on FRN that I did work for in the past, then it's flat 10%. But they pay me more for some reason.

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Steve Faircloth
A Way Out Bail Bonds
(220) 204-9733 Cell
NSIN# SF0105
LIC. #704058

You will find 10% is normal. (Its been this price since the 70's) But there are those of us that charge more and there are those that charge less. I have not worked for 10% for many years but I have also worked for 0% for some. If you charge a premium fee you must provide premium work.

Steve gets paid more because he is so pretty in his spandex uniform

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The Rose Investigations LLC
Collection Agency
Security & Investigations Consultant
Retired Private Investigator & Bail Enforcement
NAM VET 1969- 1975 US Army (RECON)
Office 260-220-3877
1-888-631-5520
Fax 260-456-6062

I agree with the understanding of 10% but what if the bail amount is less than $3000 thus being less than $300 for the work. Especially if the bail amount is less than $1500.

For example, I have a hard time justifying working for under $100. After time, gas, I am basically forced to work the case alone to break even.

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EX-LE Fugitive Recovery

Arizona

I agree completely. The other day I received a call for a bail of $750. At 10% that is of course 75 bucks and with that I would barely break even.

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EX-LE Fugitive Recovery

Arizona

Well, I remember that when I was operating in Las Vegas, I charged 10% of the penal amount of the bail bond(s) with a $300.00 minimum fee. I had to make working each and every single assignment worth my investment. If the money isn't worth my time, then the assignment doesn't get worked. My clients were more than happy with the $300.00 minimum fee, or they would not have continued to issue their assignments to me. The proof is in the pudding.

Here's one way to look at it:
If the client is unhappy with your minimum fee, then ask your client if s/he would be willing to invest his/her money, effort, expertise, and time to personally work on the assignment for less money. If the answer is "no," well then there you go! If the answer is "yes," then your reply should be, "Go for it!" Don't be rude; just state the facts plain and simply.

All business owners are in the same general business; which is the business of making money. If a job isn't profitable, then it simply isn't worth your time. If it doesn't make dollars, then it doesn't make sense (cents). This is what I like to call simple math. It ain't rocket science, folks.

This minimum fee provides the client with a certain amount of security in knowing that s/he has provided you with the proper motivation to cure their forfeitures in a professional and timely fashion. The client will have peace of mind knowing that a "low bail amount" assignment is not sitting somewhere on a desk or inside of a file crate/cabinet collecting dust and cobwebs. The client will know that you are working on the assignment because s/he has provided you with the proper motivation to secure his or her "wayward client."

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Jason Pollock
Owner/Operator
Surety Risk Management
Los Angeles, California
(323) 786-FIND

"Approach is Everything."

Depends....generally 10% for local or 'easy' pickups, or bail agents that I know. Fee increases when the time to Summary Judgment is drawing close. Likewise, I have done some for free for people I know.

I have a bail agent in Reno that I work with who calls me on his $1100 skips that come to Northern California. While I only charge him 10% he always pays 50 to 60%. He said it was due to the distance and time to bring them back to the Cal/Nevada state line (about 3 hours away through the mountains) and the time required to obtain the 847.5. He also said that some day he is going to need me to pick up someone that he won't be able to pay me for. You will find that many recovery people have various arrangements similar to this.

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Randall Crew
Randall Crew & Associates
641-289-0136

I just got started. In fact, I just surrendered my first skip yesterday. The bond was only $800, but I suppose we all have to start somewhere. It took about 12-hours over two days (including booking and travel time) to close the case. I have heared that the more experienced guys charge a higher minimum, but the general consensus I have found is 10% ($250-$300) minimum.

It could vary state by state, Washington (where I do recovery) has some pretty extensive licensing requirements which come at a high cost to renew each year.

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Aaron Darby
Washington State
Bail Bond Recovery Agent - #400