Pricing an Inspection

[Mike Hazelwood]

I charge by sq. ft. with a few add ons.

http://www.calproinspections.com/fees.html

[Russel Ray]

Originally Posted by mhazelwood

I charge by sq. ft. with a few add ons.

http://www.calproinspections.com/fees.html

You'd probably get even more business if you used The Power of Nine pricing.

[Mike Hazelwood]

Originally Posted by rray

You'd probably get even more business if you used The Power of Nine pricing.

Do you mean 299.00, 349.00 etc.?

[Russel Ray]

Originally Posted by mhazelwood

Do you mean 299.00, 349.00 etc.?

No. I mean 299, 349, etc. Get rid of those zeroes.

And do the same to your pricing structure so that your break points end in nine, i.e.,

less than 999 SF
1000-1499 SF
1500-1999 SF

Etc.

[whandley]

Or,

$99 home inspection convention

[tneyedli1]

Originally Posted by jfunderburk

Ever have one say "I need a home inspection on Saturday afternoon for $200."?

Yes! At least twice a week.
My reply, " Which half".
I inform them that they cannot afford the cost of a cheap inspection.
Here is why......... etc.
T.Neyedli
www.aphahomeinspections.ca

[Thomas G. Valosin]

I went through those questions too when I started 6 years ago. I elected to1) not charge by sq footage. Can not make enough on the cottages and small ranch homes. On the other hand, why should I "put it to" the person who can afford a McMansion, charging for mostly empty great rooms and double sized bedrooms? (2) Thought about charging by sale price, but, found it difficult to come up with a workable percentage that would benefit me - a small handy man special at 59K has all the same components (and probably more problems) as a 359K place.
So, I settled on this policy: For up to 2 hours on site (this is also my minimum charge) $375.00. Any time over that is billed at a per quarter hour rate of $18.75. The 2 hour charge covers my cost of doing business. Over that is pure profit. Anything involving a lab (Radon canisters, gathering and submitting water quality samples) is based on lab costs plus a reasonable handling fee and profit for the company (usually about 1/3 of the lab fee).
This brings me about 2/3 to 3/4 above the low-ballers in the area.
So far, this has been working, but, I am always open for suggestions.

[Thomas G. Valosin]

Don't let the emotocon in my last post confuse - it shows the thought, research and effort put into my decision!

[Russel Ray]

Originally Posted by tvalosin

... $375.00 ... $18.75 ... I am always open for suggestions.

Definitely get rid of that 75¢. Go with $379 and $19. Remember the Power of Nines.

[Dave Morris]

we perform simple condos/townhouses on slabs for $295.
single family homes start at $325 with a sliding scale based on sq. footage, age and distance if overly excessive.
Typically our scale runs $325 for anything up to 2000 sq ft. with $25 increments for each 500 sq. ft above that.
radon(we use continuous monitors) $125 w/ inspection $150 without
water tests we profit from $75 to $150 after lab fees depending on the test performed and distance driven

we do not offer different levels of inspecting, with the exception being pre-drywall framing inspections.

we send 2 inspectors(family owned and operated) on houses that are either older, or above 2000 sq ft.....it may sound detrimental financially to split the profit, but we have to turn away business all year with the exception of dec/jan because the agents absolutely love it...not too mention we are pretty good This allows us to be a little picky on what we want to inspect. (or for who) We make up the split profits with volume, and the ability to split report writing duties at home.
We price check with other inspection firms in our area that we consider at our level, and we try to stay in that ballpark. You dont want to be too cheap, that is for certain!

In reality, I would flip the price schedule if it was up to me. The large new homes at 5000 sq ft for $500 or so are typically much easier to inspect than a 1500 sq ft 15 year old ranch with hardboard siding for $325 lol.

[Russel Ray]

Originally Posted by Dave Morris

... $295 ... $325 ... $325 ... $25 increments ... $125 ... $150

Make it $299, $329, $329, $29, $129, and $149, and I'll bet you'll have (1) fewer price comments from any price shoppers and (2) more business. Remember The Power of Nines! You'll hear me say it over and over and over again. And to see it in action, all you have to do is visit your local gas station, a grocery store, or a restaurant. Fully 90% of their items end in 9. There's a reason.

[Dave Morris]

Originally Posted by rray

Make it $299, $329, $329, $29, $129, and $149, and I'll be you'll have (1) fewer price comments from any price shoppers and (2) more business. Remember The Power of Nines! You'll hear me say it over and over and over again. And to see it in action, all you have to do is visit your local gas station, a grocery store, or a restaurant. Fully 90% of their items end in 9. There's a reason.

I understand the power of 9 works in many applications including our profession. Personally though, we dont want price shoppers as we have more business than we can handle. I dont envy, or can I even imagine what new inspectors go through to get their business rolling. I am lucky enough to have a grandfather that started our company before most knew what a HI even was lol(I started inspecting houses as an apprentice with my grandfather at 16 years old, 34 now). As far as ASHI records go, we performed more inspections than any company in the state of NC last year (as a 3 man crew; father, brother, myself totaling 1200 plus inspections and over 300 radon tests) so I dont want to change a thing

My best advice to anyone in this business is charge in the middle of the pack, and consistently provide superior customer service. It also doesnt hurt to make as good of friends as possible with the client during the inspection; they will be less likely to get irrational if a problem arises later. We offer them free technical support for life, even if they are undertaking a project unrelated to the inspection 5 years down the road. Referrals will build in time, realtors with ethics will love how you take care of their client, and then everyone can make that vast fortune that "want to be" home inspectors seem to think we make lol.

[Russel Ray]

Originally Posted by Dave Morris

...consistently provide superior customer service ... make as good of friends as possible with the client ... offer them free technical support for life ... Referrals will build in time, realtors with ethics will love how you take care of their client...

Great words of wisdom.

[mreusch]

Why yes I have. So I sent them an e-mail to find an inspector LMAO with a GOOD HUNTING message

[mreusch]

Originally Posted by rray

You'd probably get even more business if you used The Power of Nine pricing.

RR you are correct. I adjusted my prices and sq.footage to nines and raised my per job income. I also have implemented quarterly increases for the last 2 quarters with no complaints from clients ot realtors. Please listen to RR he is ahead of the curve.


Thanks again RR


Mark