The Hidden Cost Of Discount Pricing In Transaction Coordination

The hidden cost of discount pricing in transaction coordination is bigger than most new TCs realize. At first, lowering your fees may seem like a quick way to attract clients—but in reality, undercharging can damage your profit, limit your growth, and even push away the very agents you want to work with.

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Why TCs Fall Into the Undercharging Trap

The logic seems simple: lower rates = easier yes. And in the very beginning, that can feel like the fastest way to get your foot in the door.

But here’s the thing: your pricing doesn’t just cover your time. It communicates your value, confidence, and professionalism. When your fees are too low, you risk sending the wrong message—that you’re inexperienced, desperate for work, or unable to deliver the level of service high-producing agents expect.

That’s why undercharging often attracts bargain hunters instead of long-term partners.

The Numbers: Why Discount Pricing in Transaction Coordination Fails

Let’s run some basic math.

Say you set your fee at $300 per file and you want to make $5,000/month. You’d need 17 transactions every single month. That’s a heavy load, especially in a business that runs in cycles.

When you break it down, the hidden cost of discount pricing in transaction coordination is that you’re forced to juggle more files with less margin for error.

Now, if you charged $450 per file, you’d only need 11 transactions per month to hit the same income. Fewer files, same income, more breathing room.

But let’s be crystal clear: these are just examples. Rates vary widely based on:

Your market
Your value-added services (licensed assistant tasks, white-glove packages, listing coordination, etc.)
Your cancellation rate
Your business expenses and tax obligations

You can’t just “set a higher fee” to work less or make more profit. To justify a premium, you need to deliver premium.

That could mean offering licensed services, building all-inclusive timelines, or adding specialized support like investor packages, marketing coordination, or post-closing concierge services.

Promotional Discounts vs. Baseline Pricing

Now, I want to make one thing clear: I’m not against promotional discounts. In fact, they can be a smart strategy to get in front of new agents and show them how valuable you are.

Offering a limited-time discount—or even handling one file for free—can build trust, give you a chance to demonstrate your systems, and open the door to a long-term relationship.

But here’s the catch:

A promotion has an end date.
Your baseline fee stays intact.

When you use promotions strategically, you create a clear path back to your true pricing. Agents know they’re getting an intro offer, and when they see how much smoother their transactions run, it’s easier for them to say yes to your regular rate.

The danger isn’t in promotions—it’s in setting your baseline too low and staying stuck there.

The Free TC Calculator

To help you see the real numbers for your own business, I’m sharing with my blog readers the same free TC Calculator that I include inside my course, Coordination Virtual Playbook.

You can access it here: Free TC Calculator

It lets you run different scenarios over and over until you find the sweet spot for your business.

This calculator takes into account:

Cancellation rates (because not every deal closes).
Expenses (software, insurance, tools).
Taxes (so you’re not caught off guard come April).

Without factoring these in, you’ll be chasing numbers that look good on paper but leave you drained in real life.

Understanding Cancellation Rates

Cancellation is one of the most overlooked parts of TC math. If you want accurate numbers, you need to know your personal cancellation rate.

Here’s why it matters:

Type of agent: Some agents are stronger negotiators and have more stable pipelines; others take on more “maybe” clients.
Client type: First-time buyers may cancel less than investors, who often walk away if the numbers don’t work.
Financing vs. cash: Financed deals fall apart more often because there are more hurdles (inspection, appraisal, lending conditions).
Lender quality: A strong lender can keep a shaky deal alive; a poor one can sink even the best clients.

If you work with investors, expect cancellation rates to be higher. And the only way to really know your rate is to track it with your own data.

The TC Calculator makes room for that—it won’t let you base your business on fantasy numbers.

The Hidden Cost of Discount Pricing in Transaction Coordination (Beyond the Math)

Undercharging doesn’t just show up in your bank account. It creates hidden costs across every part of your business.

1. Financial Cost

The obvious one: you’re doing more work for less money. But the deeper issue is opportunity cost. Every hour you spend chasing bargain clients is an hour you could have spent building scalable systems, investing in marketing, or serving premium clients.

2. Emotional Cost

Juggling too many low-paying files = stress, overwhelm, and burnout. That constant exhaustion makes it harder to show up well for your clients and even harder to grow your business strategically.

3. Reputational Cost

Being “the cheap TC” is not a badge of honor. High-producing agents don’t want a discount partner—they want a reliable one. When your pricing signals “bargain,” you’re less likely to land the agents who value professionalism and consistency.

4. Lifestyle Cost

What’s the point of building a business if you can’t step away from your laptop without panic? Undercharging often forces you into nights, weekends, and missed family time just to make ends meet.

Case Study Examples

Case A: A TC charges $250/file. To reach $6,000/month, she handles 24+ files at once. Deadlines slip, stress mounts, and she loses 3 agent clients in a single quarter.
Case B: Another TC charges $450/file. She only needs 13 files/month. She uses the extra time to implement a CRM and client portal, which wins her two top-producing agents. She actually works fewer hours and builds stronger referral pipelines.

Same talent, different pricing strategy—two very different outcomes.

Action Plan: How to Stop Discount Pricing in Transaction Coordination

Audit your time — Track how many hours each file actually takes.
Calculate your baseline — Use the TC Calculator to factor in cancellations, expenses, and taxes.
Define your value — Add services, streamline systems, or create premium experiences that justify your fees.
Set your new rate card — Align with your data, not with fear of rejection.
Communicate with confidence — Explain to agents how your systems protect them, save them time, and reduce risk.
Reassess quarterly — Review your numbers, track cancellations, and adjust accordingly.

FAQs About Transaction Coordinator Pricing

Q: How often should I reevaluate my rates?
A: At least every 6–12 months, or sooner if your workload, expenses, or cancellation rates shift. The TC Calculator makes this simple—just plug in updated data.

Q: What if agents push back on my pricing?
A: Use it as an opportunity to highlight the value you provide. Show them your systems, compliance process, and how your work saves them time and risk. Sometimes, pushback is a sign they aren’t your ideal client.

Q: Are promotional discounts a good idea for TCs?
A: Yes, when used strategically. A limited-time discount (or even a free trial file) can build trust and get you in the door. The key is to make sure it’s clearly communicated as a promotion—not your baseline rate.

Q: Should I offer different pricing for investor clients?
A: Often, yes. Investor pipelines usually carry higher cancellation rates, so you may need adjusted pricing, retainers, or upfront fees to make the math work.

Q: How do I calculate my true cancellation rate?
A: Track your files over time. Include whether deals are cash or financed, the types of clients your agents bring, and which lenders are involved. Over time, you’ll spot patterns unique to your business.

Q: Is it better to charge per file or offer package pricing?
A: Both work. Per-file pricing is simple, but packages (like monthly retainer bundles or “white-glove” upgrades) can stabilize income and attract higher-value clients.

Final Word

Undercharging is more expensive than you think. It eats into your income, your energy, your reputation, and your ability to grow. The path to a sustainable TC business isn’t just raising rates—it’s knowing your numbers, delivering real value, and pricing with confidence.

Start by running your own numbers with the free TC Calculator, and take the guesswork out of building a business that lasts.

And if you’re ready to go deeper, don’t miss my free training: 3 Principles to Launch Your TC Business on Your Own Terms (Without Endless Research).

When you’re serious about scaling, my course, Coordination Virtual Playbook, will walk you step by step through building a profitable, sustainable TC business.