Got low balled by House Master again

[John McKenna]

Originally Posted by dbowers

In my area, the company with the highest base pricing (nothing less than $425), has the scrimpiest reports (4-5 typed pages) AND their reports leave out probably 30% of the things you and I do. For example they don't report on doors, windows, driveways, etc. They've got sued more than any company I know, yet many lenders and Agents consider them the Cadillac of the industry - Go Figure!!

Your right, not all inspectors with a high price are good inspectors.

There are two sets of consumers out there. Some want low prices and some
want quality and expect to pay more for it. The ones looking for quality
are suspicious of low prices.

You can market to either breed and you will get paid accordingly. I will
not deny that there is indeed a market for price shoppers. I just don't
market to them.

I have found this same pattern in my other businesses as well.

The vast majority of inspector go out of business because the market
place is saturated with low priced inspectors trying to compete for
the same peanuts.

[mdiplock]

Originally Posted by jmckenna1

Your right, not all inspectors with a high price are good inspectors.

There are two sets of consumers out there. Some want low prices and some
want quality and expect to pay more for it. The ones looking for quality
are suspicious of low prices.

You can market to either breed and you will get paid accordingly. I will
not deny that there is indeed a market for price shoppers. I just don't
market to them.

I have found this same pattern in my other businesses as well.

The vast majority of inspector go out of business because the market
place is saturated with low priced inspectors trying to compete for
the same peanuts.

Well said John,

You can fight over the scraps or you can you can eat at the head table. I was pricing slightly higher than my lowest competitor when I first started and have slowy raised my price over the last couple of years. I recently raised my pricing again and I'm now in line with the top 5 companies in my area and have never been busier. In fact I am even taking business away from some of them. So the way I see it is that, while you may get a few price shoppers at low prices, in the long run it's your knowledge and reputation that will get you more inspections and your price should reflect that.

[dcook1]

Originally Posted by wdevries

unfortunatly for this inspector he is required to make payments royaltys each month and if he is forced to reduce his price he is surviving at best on minimal , this will end up putting him out of business as the constant drop in price will lock him in and he may never recover,. better to loose one sale then pull the bottom out of your market

my 2 cents worth
Billy

William, As someone already posted, we cannot price fix.
However it is not his royalties. I pay royalties and far exceed every month what they require.
The other week I lost one .... 6500 square foot main floor business with two aprtments above it. I gave him a quote of $650. The client advised me of the inspectors name that told him, he would do it for $200. I told him this was the price of a desperate person and that I knew that person and know he is not a qualified inspector. I then gave him the name of another inspector to call for a real price. I talked later to the other inspector and he told me he had quoted $650 plus GST.
I never tell the client to go to the cheaper inspector... I just tell them they need a good inspector... not a person with a cheap reputation and my reputation is "thorough" I will not entertain the word cheap associated with me.
One guy in my area advertises he does inspections for $199... when people or realtors ask me if I will match him, I say no... he is overpriced.

Mark Diplock...... about your comment on answering service.... I have a message that starts... Congratulations! You have reached my voice mail... please feel free to remind me to give you $25 off your inspection..... that ususally gets me a message left.

[wsiegel]

Everybody is low balling these days. I just lost an inspection. 1950 home, 1400 sq ft. with a pool, seawall and dock, and a wind mitigation insepction. My price was around $700.00. The bid he took was $450.00.

He also wanted air quality. I origianally told him $225.00 if I do the inspection. He called me back and tried to get me to do it for that price. He was disappointed when I told him that was the price with the inspecton. I told him I would do it for $350.00 (his next lowest price was $450.00) but all I would do is air quality and not a complete mold inspection. Never heard back from him.

[RAY THOROMAN]

I think that this has been debated or discussed many times through the years. Seems to each their own, everyone has a method to arrive at what price they feel they should charge for a inspection.

Bottom line I do not worry about what others are charging nor worry about who is charging the least. It may be different in other markets.

Maybe this company will not be around long term and your right most will not be but if you stay steadfast in what you feel you need to charge in order to stay in business, then you will be around long term.

I guess it is nice to vent every once in awhile though...

Ray
http://www.choosesuperiorinspection.com

Home Inspectors Oakwood, Georgia Cumming, Georgia

[Carl Pennick]

Originally Posted by gporter

We are loaded with them here.

We now have a new company here doing 4 points for $75.00 and yes they are NACHI members

[gporter]

Originally Posted by cpennick

We now have a new company here doing 4 points for $75.00 and yes they are NACHI members

Ya mean $69.00

[Ted Allen]

Oh, hell folks the Realestate market is crashing. So what, add 5% to your fee and see what happens.

If you allow yourself to buck down to the market then what do you look like?

You must charge!!!!! what it cost you in real $ + profit...

If thats 379.00 as in my area then you must charge that much.

Truth is folks that as the Realestate market crashes the only HI's that will be left are the ones that wright hard , but carry soft words, kind of hard to explain, but the facts are that you do your job to the best of your ability and do not make a foundation crack into a structural prob"if it's minor and within spects"

Seems simple, but in my area lot's of HI's have crashed... Myself included, but for different reasons.



I wish you all the best in these trying times..............

[cradan]

Originally Posted by tallen

...You must charge!!!!! what it cost you in real $ + profit...

If thats 379.00 as in my area then you must charge that much.

Thank you, Todd.

If you keep worrying about what the market does, or what your competitors do, or what anyone else thinks, chances are good you'll be either over- or under-pricing. A better strategy (for any business, not just H.I.'s) is to price according to what you know...that is:

1.) Know what your fixed costs are.
2.) Do the best you can to stay on top-of and know your variable costs.
3.) Do the best you can to understand your tax liability, given any specific amount of income projected.

When you have these items locked-down as closely as possible, THEN you can set a profit target. Once that's done, your inspection price becomes a lot less mysterious (to you). The amount of revenue you have to charge beyond #1, #2 & #3 to reach your profit "goal" can certainly be variable, and probably will be given the less important issues of what your market does, your competitors do, etc., but you'll NEVER lose money.