Does your inspection pricing say "Don't Hire Me, I Suck" ???

[Nick Gromicko]

If your brochures make the contention that you are the best inspector in town...
If your website makes the contention that you are the best inspector in town...
If your educational background makes the contention that you are the best inspector in town...
If your truck makes the contention that you are the best inspector in town...
If your business card makes the contention that you are the best inspector in town...
If your professionalism makes the contention that you are the best inspector in town...

Then don't let your pricing CONFLICT with that contention! Keep your prices up where at least your prices SUPPORT your contention that you are the best inspector in town.

[Daniel W. Levia, CMI]

Amen!

[William J. Decker]

Great Point, Nick.

Every time I have raised my prices (6 times in the last 5 years), these things have happened:

1) The number of inspections (regular pre-purchase home inspections) I do has increased.
2) My total revenue has increased (more inspections at a larger fee).
3) More agents and even a few brokers ask for my card and refer me. Some have told me that the hate "cheap, checklist, 45 minute inspectors".
4) You, yourself, start to feel more like a professional.
5) You spend more time, learning, so that you can bring more expertise to the table.
6) I have also been getting more calls for consultations. Realty managment companies, condominium associations (water intrusion problems and condo transition inspections) and even contractors, hiring me to check out problems so that they can fix the problems the first time.

Maybe this is just the result of the dynamics and demographis of the area I practice in, but I find that many people will happily pay more for quality. And these are the kind of clients that you want. Smart, engauged and they understand the process.

Hope this helps;

[James A. Levy]

Originally Posted by gromicko

If your brochures make the contention that you are the best inspector in town...
If your website makes the contention that you are the best inspector in town...
If your educational background makes the contention that you are the best inspector in town...
If your truck makes the contention that you are the best inspector in town...
If your business card makes the contention that you are the best inspector in town...
If your professionalism makes the contention that you are the best inspector in town...

Then don't let your pricing CONFLICT with that contention! Keep your prices up where at least your prices SUPPORT your contention that you are the best inspector in town.

I desperately want to subscribe to what you are saying. The three calls that I have recieved this year so far have been price shoppers who could give a rats *** how good I was. They only wanted to know how much I was. I even took Ron Bibler's advice, which I thought was great and start the inspection over the phone and emailed my contract, sample warranty, sop, coe, all to the client while on the phone. The client cut me short and said he just wanted the best price.

I have five websites, do direct mailing(both agents and clients), go to open houses, stop at real estate offices and leave brochures, I am now direct mailing mortgage lenders. All I have received this year is three calls to date.

Do you honestly think I would consider raising my prices in light of this? The other inspectors in my area are charging $350.00 for a home inspection. I was charging that and am now running a limited time promotion of $325.00. Lowering my price is against everything I believe in, because I feel we don't make enough as it is. My beliefs are not paying my mortgage however, and if this reduction doesn't drag in some clients, I will raise my price back up to 350 and try something else.

[Stephen D. Schroetke]

James, don't advertise discounts it's not worth it. In my experience price shoppers are first time buyers and I will offer a 5% discount. Once you get busy you can let price shoppers go. They can be a pain in the long run anyway.

[Bob Elliott]

Originally Posted by jlevy1

I desperately want to subscribe to what you are saying. The three calls that I have recieved this year so far have been price shoppers who could give a rats *** how good I was. They only wanted to know how much I was. I even took Ron Bibler's advice, which I thought was great and start the inspection over the phone and emailed my contract, sample warranty, sop, coe, all to the client while on the phone. The client cut me short and said he just wanted the best price.

I have five websites, do direct mailing(both agents and clients), go to open houses, stop at real estate offices and leave brochures, I am now direct mailing mortgage lenders. All I have received this year is three calls to date.

Do you honestly think I would consider raising my prices in light of this? The other inspectors in my area are charging $350.00 for a home inspection. I was charging that and am now running a limited time promotion of $325.00. Lowering my price is against everything I believe in, because I feel we don't make enough as it is. My beliefs are not paying my mortgage however, and if this reduction doesn't drag in some clients, I will raise my price back up to 350 and try something else.

From the above:::
I would say your problem is in getting calls in the first place.

Something from nothing ,is still nothing.

[James A. Levy]

Originally Posted by belliott

From the above:::
I would say your problem is in getting calls in the first place.

Something from nothing ,is still nothing.

Yes, exactly. The majority of my site traffic is weblink exchange. I even have Service Magic as a lead generator, and nothing comes my way. I just think things are that dead. The only ones working are the guys with a established client/agent base.

[William J. Decker]

Originally Posted by belliott

From the above:::
I would say your problem is in getting calls in the first place.

Something from nothing ,is still nothing.

Spoken like a true low-baller.

You only charge around 250 for a condo, if I am correct.

[James A. Levy]

Originally Posted by sschroetke

James, don't advertise discounts it's not worth it. In my experience price shoppers are first time buyers and I will offer a 5% discount. Once you get busy you can let price shoppers go. They can be a pain in the long run anyway.

Just trying to make something happen.
I even bought a bunch of Ben's books and went to some houses with for sale signs up. I would introduce myself, give them the book, and try to explain to them the benefit of a sellers inspection.

I usually get five to ten minutes of their time, so I'm not pissing them off. I just need to figure out how to free up the checkbook.

[Bob Elliott]

Originally Posted by wdecker

Spoken like a true low-baller.

You only charge around 250 for a condo, if I am correct.

Still giving away thermal with that $10,000 camera ?

You do not know what I charge as I do not publish prices.

Much of my base is client referral through professional Judges,Lawyers,Engineers,and Universities due to my through reports and client education.

What do you charge for a 1 Bedroom Condo ?

(p.s) I see you are back in the job of personal attacks on nearby competition.

That is a bad policy in my book ,but you are free to learn on your own.

[David A. Andersen]

Originally Posted by jlevy1

I desperately want to subscribe to what you are saying. The three calls that I have recieved this year so far have been price shoppers who could give a rats *** how good I was. They only wanted to know how much I was. I even took Ron Bibler's advice, which I thought was great and start the inspection over the phone and emailed my contract, sample warranty, sop, coe, all to the client while on the phone. The client cut me short and said he just wanted the best price.

I have five websites, do direct mailing(both agents and clients), go to open houses, stop at real estate offices and leave brochures, I am now direct mailing mortgage lenders. All I have received this year is three calls to date.

Do you honestly think I would consider raising my prices in light of this? The other inspectors in my area are charging $350.00 for a home inspection. I was charging that and am now running a limited time promotion of $325.00. Lowering my price is against everything I believe in, because I feel we don't make enough as it is. My beliefs are not paying my mortgage however, and if this reduction doesn't drag in some clients, I will raise my price back up to 350 and try something else.

Your price and refusal to come down, reflects your opinion of yourself.

Unfortunately most new startup companies cannot wait it out!

You need to decide your market. If you want to inspect crack houses and love shacks with the high potential of being sued over $150 home inspection you better have a backup plan or some really good insurance. You can make money until your first lawsuit, which is most likely to happen with clients buying these crap houses. Then close your doors and find another job...

There will always be people out there working for free and can't make their IRS payment on April 15 and will go out of business or be in jail. You just need to ignore it.

[James A. Levy]

Originally Posted by dandersen

Your price and refusal to come down, reflects your opinion of yourself.

Unfortunately most new startup companies cannot wait it out!

You need to decide your market. If you want to inspect crack houses and love shacks with the high potential of being sued over $150 home inspection you better have a backup plan or some really good insurance. You can make money until your first lawsuit, which is most likely to happen with clients buying these crap houses. Then close your doors and find another job...

There will always be people out there working for free and can't make their IRS payment on April 15 and will go out of business or be in jail. You just need to ignore it.

David, I read your post and am still scratching my head.
My price, I felt was correct for my area. I lowered it $25.00 FOR A LIMITED TIME!!!!!!! to try and drag some business in. If that doesn't work I will raise my price again and try something else.
So, when you spoke of my price and my refusal to come down, reflects my opinion of myself. I don't really know how to take that?

I actually have a rather high opinion of myself. I would put one of my inspections up against any of the CMI's here that claim they were inspecting houses before houses were even built. How many guys have been the lead superintendent bringing a 42 story hotel out of the ground? If you count the the 500 unit condo/garden apartment building that I was a carpenter foreman on, that's almost more homes than a lot of GC's will build in their career. Have you ever been to the Liberty Science Center in Jersey City, NJ? The exterior of that building was my baby. I've got 28 years of a resume that's pretty damn good. Do I have a high opinion of myself, hell yes. Do I know it all, hell no, far from it.

Now that the testosterone is released, the real issue at hand is raising your price in this economic climate. I say no. I do think that prices need to be raised, just not now. I personally need to build a client base. Being the highest price guy from jump is not how to do it. Once I am out there in referral land, that's a different story.

[Jeffrey R. Jonas]

Originally Posted by jlevy1

I would put one of my inspections up against any of the CMI's here that claim they were inspecting houses before houses were even built. How many guys have been the lead superintendent bringing a 42 story hotel out of the ground? If you count the the 500 unit condo/garden apartment building that I was a carpenter foreman on, that's almost more homes than a lot of GC's will build in their career. Have you ever been to the Liberty Science Center in Jersey City, NJ? The exterior of that building was my baby. I've got 28 years of a resume that's pretty damn good.

Why aren't you telling this story/info up-front, big and bold, on your HomePage??? Tell your potential clients why you are better and more experienced than the rest. You only touch on your experience on your About page. Then, raise your price to $375. When you get the price-shopper, match your competition at $350. It's all about perceived value.

[James A. Levy]

Originally Posted by jjonas

Why aren't you telling this story/info up-front, big and bold, on your HomePage??? Tell your potential clients why you are better and more experienced than the rest. You only touch on your experience on your About page. Then, raise your price to $375. When you get the price-shopper, match your competition at $350. It's all about perceived value.

I said I didn't know it all.

[James A. Levy]

Originally Posted by jjonas

Why aren't you telling this story/info up-front, big and bold, on your HomePage??? Tell your potential clients why you are better and more experienced than the rest. You only touch on your experience on your About page. Then, raise your price to $375. When you get the price-shopper, match your competition at $350. It's all about perceived value.

Jeff, my earlier post was a joke, because I didn't have an answer.
I thought about what you said and I think you are right. I am actually a pretty modest guy, until it is dragged out of me. That is a problem. I need to correct my sites.

Just send the bill for the therapy to; PO Box 463, Medford, NJ 08055