That Wall Street Journal article on Binder and Binder indicates that they took in $88 million in fees for representing Social Security claimants last year which is a lot but that the total for everyone representing Social Security claimants was $1.4 billion. By my math, that means that Binder and Binder had only a 6% market share nationally despite spending $20 million on television ads and an untold amount on search engine advertising.
Binder and Binder's influence goes beyond what its market share might suggest. Perhaps this would have happened anyway but several other firms are trying to operate nationally in ways somewhat similar to Binder and Binder and many other firms operating regionally are also cutting service to clients while ramping up advertising. It looks like a race to the bottom -- who can cut service the most so they can spend the most on advertising.
4 comments:
As a co-owner of a firm that advertises, only within our area of the state, I don't believe there has to be a trade off between advertising and providing a high level of service.
Unfortunately, part of the reason you have to advertise locally, is to compete with the bozos advertising nationally.
What does Mrs Binder, er Shore, have to say about all of this eh NOSSCR?
Regarding Mrs. Binder, I am of the opinion that there is a conflict regarding her position at NOSSCR, but others disagree. I'm NOT SAYING that she has done anything wrong but I think the appearance is bad for the group.
I would guess that most of the members of NOSSCR are not national firms or large regional firms but rather small local or state firms. It's like having the spouse of the President of Walmart heading the National Association of Local Retailers. Just my opinion.
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