“Free” Placement Services Are Not Working In Your Best Interest
The word “free” is often used to drive business and new business generation. There is nothing wrong with offering a free trial, or a truly free service, or things of that nature. I do however take issue with any free service that is not truly working for the benefit of their customer; Especially when their customer is a family who is going through hell and trying to figure out options for a loved ones care. It’s easy for a family to be taken advantage of, and in many cases this is exactly what happens. I’m not saying that all situations are this way. There are many families who have received great services from “placement services”. But here is the main issue with this type of free service:
Don’t think that these services are doing this out of the goodness of their heart. The largest placement company in the country generates more than $50 Million in revenue annually, and they are a for profit company. So how do they get paid? The facilities pay them a commission. Think of these agencies and people as realtors. Basically, they find residents for facilities and they get paid a fee from the facility for doing so. Typically these companies and people charge 1 to 1.5 times 1 months rent, which is generally somewhere between $3,000 and $4,500. Their fees are HUGE, and this is a growing and extremely profitable industry. Profitability is fine. There’s nothing wrong with profiting off of a service that provides value. Here’s the real issue though….
There is truly no honesty and transparency in the placement business. Why? Let’s look at an example….
Let’s say that the best memory care facility in the state is literally around the corner from where you currently live. You tell the placement consultant that your main concern is location, since you want to visit often. So why then wouldn’t the placement consultant set up a tour for you at the location right around the corner?
Because these people will ONLY recommend facilities who will pay them.
If the best facility for your loved one is the best fit, if the placement agency doesn’t have a contract with that facility, you’ll never even know that it exists. THAT IS WRONG AND UNETHICAL.
In this business, as you go through this journey with your loved one, you need to surround yourself with people who are working for you only. When it comes to real recommendations, the only way that can happen is if you hire that company directly yourself. Free sounds good until you realize what the actual consequences of free might be.
Is your loved one really worth that gamble? Steer clear of these companies, and find yourself an advocate who will help you and guide you based on what is best for you only…. not for themselves!