prices

[dbucknavich]

OK. I'm shocked recently at some of the jobs I'm losing. I quoted a 3000 square foot home with a pool inspection included. They found me because of a postcard which includes a 10% discount coupon. I quoted at $299 and they almost laughed at me, saying that other inspectors in the area quoted that at $229 and $249. I would have been willing to drop another $20, but to hear how low some quotes were floored me. Now correct me if I'm wrong, but we are supposed to get paid for what we do right? I thought I already lowballed the quote, but to come up with those numbers is a little silly.

In order to compete with local lowball inspectors, I have to set my prcies at an amount that will put me out of business. I know it sounds foolish, but I just couldn't let myself do that job for that much money. I know RR's philosophy of you're losing the entire inspection fee if you don't do it as opposed to losing a fraction if you do the job for a lower fee, but I have to set a minimum. I don't know how some inspectors survive charging no more than $250 for a job.

I don't really know why I'm writing this, but I guess I'm hoping that certain inspectors will wake up and realize that we are worth more than what we charge. We control what we make and we can make that a healthy fee (or at least fair).

I think I will just grossly overcharge in an attempt to show potential customers that I am worth something more instead of showing them that I am willing to charge for less.

Can I get an amen?

[Roy D. Cooke, Sr]

Originally Posted by dbucknavich

OK. I'm shocked recently at some of the jobs I'm losing. I quoted a 3000 square foot home with a pool inspection included. They found me because of a postcard which includes a 10% discount coupon. I quoted at $299 and they almost laughed at me, saying that other inspectors in the area quoted that at $229 and $249. I would have been willing to drop another $20, but to hear how low some quotes were floored me. Now correct me if I'm wrong, but we are supposed to get paid for what we do right? I thought I already lowballed the quote, but to come up with those numbers is a little silly.

In order to compete with local lowball inspectors, I have to set my prcies at an amount that will put me out of business. I know it sounds foolish, but I just couldn't let myself do that job for that much money. I know RR's philosophy of you're losing the entire inspection fee if you don't do it as opposed to losing a fraction if you do the job for a lower fee, but I have to set a minimum. I don't know how some inspectors survive charging no more than $250 for a job.

I don't really know why I'm writing this, but I guess I'm hoping that certain inspectors will wake up and realize that we are worth more than what we charge. We control what we make and we can make that a healthy fee (or at least fair).

I think I will just grossly overcharge in an attempt to show potential customers that I am worth something more instead of showing them that I am willing to charge for less.

Can I get an amen?

Raise your prices $25:00 or $50:00 more then any one else .
Then say do you want the best or do you want the rest.
$229:00......They obviously know what they are worth .

Make sure you do give a better inspection and you will win I did.
Roy Cooke $399:00 for me and we still have some at $150:00 .

[wforsyth]

I would really like to know how many inspections some people are doing at the higher rates. 1 a week...two...five...what?


I'm sorry but I think the market is beginning to determine what inspectors are worth and what they can charge.

Dylan, in your state, I have already seen some inspectors on the forum here state that they charge $150 -$199.

Here is the way I am beginning to look at it. Perhaps inspectors have a different opinion of their value than other professions in the industry as well as the client. I know that there is almost no respect for the home inspection industry within the construction community and other similar professions.

We say we are generalists, we only visually inspect, and then we say we are worth hundreds of dollars?

Well, excuse me, I'm just trying to be honest here. For hundreds of dollars, a client could hire individual professions to do the different inspections of the systems in the house, get a deep, detailed analysis of them, and not get a report where everything the inspector evaluates is disclaimed.

I think that the industry has created it's own monster. We have a SOP that states we don't do this, and we don't do that, we aren't liable for this or that, and the language in most documents is so highly designed to protect the inspector from being sued, that the client's feel that there is no recourse or protection for themselves.

We say we are looking out for the best interest of our client, but are we really? Or are we saving our own hides?

If we are a jack of all trades, master of none, then I hardly think we can expect people to pay top dollar for our services.

The people I see here on this board that are earning top dollar are those who have diversified and specialized in something. Those who offer full service inspections where they bring in the specialists to work alongside them are able to charge hundreds as well as thousands of dollars, because they have the repect of the industry AND clientele and are offering value for dollar.

Until those of us who are only generalists up the ante so to speak, and find a respectable niche, we will find that we can charge top dollar and clients will either go to a generalist who actually knows the value of their services and isn't overcharging. Or they will go to a home inspector who will bring along the manpower to put teeth into the more expensive inspections so that the client will feel that they are getting their money's worth and it is a dollar well spent.

[wforsyth]

One more thing.

Thousands of families are subsisting out there on $8-$10/hour by either one or both partners in a relationship. That is a maximum of about $20 an hour. They work their butts off doing it and sweat, toil, develop callouses, and injur their bodies.

When you say that you won't go out and do an inspection for $250/inspection do you realize how much more money you are making than the average joe?

Considering that most business expenses are deductible, one can't really deduct alot of the things that I've seen on here to lower the price per hour. It seems to me that most likely one is putting in about 3-5 hours on an inspection including report time. I'm not going to include drive time because everyone has to drive to their job.

If one uses these numbers, then a 5 hour inspection for $250 still ends up being $25 an hour. Anyone who thinks that working for that kind of money is peanuts is being snobbish.

This business isn't the get rich quick scheme so many seem to expect it to be. It's a slow, steady progress that needs to be looked at without the rose colored glasses.

It seems to me that alot of people want to work only a few hours a week and that is why they want to be able to charge such high fees. Most people work 40-80 hours a week, and if we want to make the big bucks in this business maybe we'll have to accept the market correction and get off our butts and work more hours.

I see alot of people on here posting that they don't have work. Well, do they want to stubbornly keep prices exhorbitantly high for what they offer and not get much work? Or do they want to lower their prices to reflect the true value of the services they are offering and get more work and make more money.

If people are only in this because they want to work few hours for lots of money perhaps they are in the wrong business.

Nurses make about $25-$45/hour. They have to train for 3-6 years to make that kind of money and I consider them highly skilled and they work harder than most of us everyday of the week. Can a home inspector honestly say that they can compare their level of expertise and amount of work weekly to that of a nurse and feel that they deserve equal compensation based on true effort?

[James H. Bushart]

Originally Posted by dbucknavich

Can I get an amen?

Amen, and amen!!

[James H. Bushart]

Originally Posted by wforsyth

Can a home inspector honestly say that they can compare their level of expertise and amount of work weekly to that of a nurse and feel that they deserve equal compensation based on true effort?

Yes.

[Carl Pennick]

Well if we think along your lines Wendy
Can any Bankers, Realtors or brokers, Insurance brokers, investors,any one in the construction industry honestly say that they can compare their level of expertise and amount of work weekly to that of a nurse and feel that they deserve equal compensation based on true effort?
You cannot compare one with the other its like chalk and cheese

[Carl Pennick]

Dylan we are having a huge problem here with low prices I am losing at least 2 inspections a week due to pricing. I have held off dropping my prices but I am now having to do the maths and feel I may soon have to follow suit and drop mine.

[James H. Bushart]

Babe Ruth was once asked if he felt comfortable with the fact that he made more money than the President of the United States. To that, he replied "I had a better year."

[Michael Larson]

Well let's just pay everyone the same hourly rate.
In fact let's have the government decide what we are worth.
Free market be damned.

The above message brought to you by: Workers of the World Unite


Now back to the real world.

[James H. Bushart]

Dylan has the misfortune of working in a state where the government defines a "qualified" home inspector. Under those circumstances where all working home inspectors are determined by the state as having met their standards, the next logical step for the citizen is to shop for price. The job would likely go to the lowest "qualified" bidder.

In unlicensed/certification states, the consumer still looks for a good price but is forced to examine things a bit deeper to assure that they are, indeed, going to get what they pay for.

In that regard, licensing proves to be contrary to the consumer's best interest as well as the home inspector's.

[Michael Larson]

James,

I live in a licensed(registered) state as well. I'm quite sure your right that the public's perception is the all licensees are equal. We know that is not the case. For myself, I have very effectively used a modified version of the script that Russel provided for dealing with price shoppers. I am careful to develop a repore with the prospective client and soon the issue of price goes away. Customers simply want to be convinced they are getting good value for their dollar. It's really not that difficult.

[Michael W. Gault]

Originally Posted by jbushart

Dylan has the misfortune of working in a state where the government defines a "qualified" home inspector. Under those circumstances where all working home inspectors are determined by the state as having met their standards, the next logical step for the citizen is to shop for price. The job would likely go to the lowest "qualified" bidder.

In unlicensed/certification states, the consumer still looks for a good price but is forced to examine things a bit deeper to assure that they are, indeed, going to get what they pay for.

In that regard, licensing proves to be contrary to the consumer's best interest as well as the home inspector's.

Not sure I agree with the above.
I'm against 'regulation' but I'm not against 'standardization'.
Having to meet established minimum standards to practice in this field should be required to keep the "I could do this job" (for a year and then they're gone) types from dragging us down as an industry.

Believing that consumers will exercise due diligence in their quest for the 'best inspector' because the State doesn't license you is fantasy...


IMHO.

[James H. Bushart]

Originally Posted by mlarson

Customers simply want to be convinced they are getting good value for their dollar.

I agree. When you have the opportunity to discuss this with a price shopper, you are fortunate.

[James Eubank]

My prices vary by size, so it's possible to get an inspection on a small place for $239 from me. Prices go up into the 300's and beyond, if larger or more complicated. There's one inspector in town, not a NACHI inspector, who offers $99 and up. Yes, I loose some business to him. But I still have the reputation for quality, and I still get enough inspections. I'm not considering lowering my prices. When I did my most recent cost analysis, my "take-home" pay was around $12 to $15 per hour. That's not high-priced at all. Most of my inspection fee goes to others (like insurance, gasoline, cell phone, etc) and not to me. So I'm getting paid less than a nurse, more like an average office worker. And I'm very glad I live in a state that does not license, because then I would be expected to charge according to the low level of licensing, not the high level of quality inspections.