In terms of evolution the conveyancing market is probably slightly ahead of the estate agency market (I know what you are thinking, but bear with me!) and there are lessons that we have learned which may help.
The bulk conveyancing ‘revolution’ really started about 15 years ago. Up until this point the market was largely provincial with local law firms all knowing/disliking each other but each with a sustainable client base and a local reputation based upon the service they provided and the people they employed.
Then the bulk providers rolled into town, each with their expensive marketing campaigns and an army of BDMs with the promise of referral fees to local agents, online case-tracking, fixed fees, and no sale no fee.
They quickly got the attention of their target clients and their opposing law firms were forced to make a decision as to whether to join them or fight back.
Unfortunately the fight back was a little misguided as many chose to take their battle to the trade press instead of the public.
Senior Partners would spend many a night penning very strongly worded letters to the trade press about the inferior service standards of these larger conveyancing providers and how they were bringing the industry into disrepute.
Others would waste their time in trying to oust the competition from the market by constantly challenging the Law Society to amend and uphold the Referral Code at the time, which would have prevented the payment of commission to estate agents.
However, the force was soon too big to stop and the bulk providers continued to steal/buy market share.
Despite their early initiatives, over the years bulk conveyancers have, rather lazily, reverted to compete on price (higher referral fees for agents and lower fees for the solicitors).
This evoked a price war within the industry and inevitably service standards have been in steady decline ever since.
You can’t blame the public for going with the cheapest option. In the absence of any real differentiators people will opt for the cheapest and so the key is always to offer something different and be prepared to compete on service.
It is true that many of these bulk providers have gone on to become big businesses but mostly with the help of outside investment.
The problem is that with outside investment comes the pressure to increase profitability and whilst they once started life as a service provider many have become obsessed by volume and market-share at the expense of the very service they are supposed to be providing.
There have been some good developments to come from these businesses over the years and there is no doubt that the industry has evolved more quickly as a result of their disruption.
However, I do question whether any of these price-driven, bulk conveyancers will ever achieve the dominance they so crave and their investors so demand.
The reason I say this is because to provide a good service you need good people and as long as you compete on price alone you will never be able to attract or retain the best staff.
Conveyancing, like estate agency, is a service and you will never be able to negate or automate the overwhelming human factors involved in this process.
There is hope. I have worked with conveyancing sales teams for many years and whereas five years ago the most common objection was price, more recently I am heartened to hear clients now asking if the conveyancer is experienced/qualified or not and if they will deal with an individual as opposed to a team.
This is because we have now seen a whole generation of movers experience bulk conveyancers and many have realized, with the benefit of hindsight, that the cheapest option is not always the best when it comes to something as stressful as moving house.
Similarly, many agents that have been enticed into selling the services of these bulk conveyancers are now desperately looking for a more quality-focused partner to meet their client’s changing needs.
It has been a long and turbulent journey but, once again, there is a growing demand and appreciation for experienced and qualified solicitors in the same way there will be a demand for good experienced estate agents after people have experienced these price-focused models.
The question is can you afford to wait for your market to come back to you or are you going to learn from the conveyancing industry and fight back now?
*Carl Brignell is a Director at Elite Panel Management, providing quality-focused conveyancing solutions
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Carl - very well said. So many volume outfits are simply not fit to offer legal services, but sadly their regulators are at fault, and I feel not fit for purpose either.
But so much profit being made outweighs caring out the public and the quality they get.
The Law Society and SRA do, so always use a Solicitor firm. I would convert to any other part of the legal world if I felt they were a better choice. I don't, not even close.
I love the way almost every piece written regarding the 'service' provided by conveyancers never ever references attracting business through word of mouth. Moreover never explores what great service actually is defined as by the paying customer.
The moans are constantly in reference to price. The moans almost always extend to referencing service level drops because of the price drop.
The drop in service is a choice. Let's be clear. The implicit, crystal clear inference from many of these articles is that quality of service is being dropped in reaction to lower fee's, not because of lower fee's.
Any individual or firm that plays the long game knows full well that a period working at maximum brilliance for little reward absolutely results in reputation led demand.
And ultimately the ability to set fee's higher than others. Marking a return to profitability, often on stellar scale.
The parallels with EA's are slowly being rubbed out as EA's are facing vastly different challenges.
Although whenever they write about this they never seem to have quite the same chip. And certainly not the same size of chip.
In truth the conveyancers are moving towards parellels aligned more closely with the moving and storage sector.
Lots and lots of choice, lots and lots of crap firms / individuals. Lots of competition, and only a small percentage will be able to command decent rates. The key word here being 'command'.
It's a tough old world.
Let's not pretend though that the SRA and Law Society actually wield any fearsome power however.
Any member of the public is far better off choosing based upon solid reputation and referral rather than a badge.
A conveyancer that had to be called back from the golf course at @three thirty Friday to exchange contracts (phone in car) is unlikely to suffer sanction despite the fourth party in the chain being close to nervous breakdown (completion date 12th, a three day move beginning Tuesday, and moving hundreds of miles).
It's common sense. This muppet will suffer reputational damage. Yet another conveyancer in that foursome may be remembered for his or her empathy < keyword there.
That he or she is under the LS means nothing.
Cue more work and higher fee's.
Sorry Matt, but it has been quite a while since I read anything like the absolute tosh you just posted.
"Any individual or firm that plays the long game knows full well that a period working at maximum brilliance for little reward absolutely results in reputation led demand". I do not have a clue about what that means and I believe I am reasonably intelligent. The conveyancers around here in Birmingham are mostly competent (the conveyancers we use are extremely competent), and certainly command more than the cheapest fees some of the bucket shops like Countrywide charge. The service they offer is always no sale, no fee and none of them play golf.
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