Seeing the "NACHI Effect" here now

[Brian A. MacNeish]

Competition is working...........Prices are falling!!!!!!

In a smaller market like ours, it's fairly easy to see what's happening. Was in a local hardware store the other day and saw some brochures from an agent of one the largest franchisors. His posted prices in large print on the front page of the brochure.....$299 for any house up to 2000 sq ft!!! He's now selling on price. (he's been in business 5-6 years)

Of the 2 associations represented here, CAHPI has added 3 members net over the last 18 months while NACHI has added 13-14 out of its 15!!

Good job, Nick!!! These poor 90%er's (those out of business in 3 years) will wonder where they went wrong when they don't see big income from an already saturated market!!

[Claude Lawrenson]

The market is saturated in many areas. Fact is this is not a new trend - its only gotten worse. Many come and go and rise up from the ashes. On the flip side like Brian notes - yes, prices and bargains are abound.

In my area alone there approximately 24 home inspectors in Essex County - its a good thing that I do not have to compete with them. Out of that 3 are RHI's. A large majority have caught on to NACHI. Quite a few are still operating with no affiliation.

Based on the 24 inspectors and assuming 2 inspections each per day for 5 days of the week - that equates to 240 home sales per week in the Windsor-Essex County marketplace, or over 12,000 homes sold per year.

Now some claim to be doing more than their 2 a day! I wish them luck....perhaps that is why some are looking at offering other related services.

[Nick Gromicko]

If all the non-InterNACHI members would just go out of business, we'd all be fine. I'm doing everything I can, every day, to make that happen... for the most part, in 2 ways: Making InterNACHI members better technically through advanced, inexpensive, convenient education www.nachi.org/advancedcourses.htm and by making InterNACHI member's inspection businesses (through mostly marketing) more successful www.nachi.org/success.htm

Anyway, these two core advantages are making InterNACHI members the best trained, most successful inspectors in the world... and all for just $289.

Like I've said many times, if you can't recognize the value of InterNACHI membership, how can you possibly recognize obvious defects on an inspection? From a pure businessman's point of view, anyone too dumb to join InterNACHI is probably too dumb to inspect for consumers.

[Mario A. Kyriacou, CHI]

From a pure businessman's point of view, anyone too dumb to join InterNACHI is probably too dumb to inspect for consumers.

WORTH REPEATING!

[Steven C. Meyer]

The economic law of deminishing returns will soon put many of the low ballers out of business, this will shrink the amount of inspectors, then prices will spike and return to a liveable income.

Shouldn't take all that long!!

Th

[mivie]

well Said Nick.

[Dale Duffy]

Originally Posted by Steven C. Meyer

The economic law of deminishing returns will soon put many of the low ballers out of business, this will shrink the amount of inspectors, then prices will spike and return to a liveable income.

Shouldn't take all that long!!

Th

It is happening here, many are folding, it had to happen sooner or later.

I know Brian Kelly raised his prices, and so did I to offset the ever increasing cost of doing business.

Should of raised my prices a while ago, even with higher prices I have more work than I can do.

[Barry Adair]

Originally Posted by dduffy

even with higher prices I have more work than I can do.

Raise them again and let Bri' have the low hanging fruit

[Dale Duffy]

Originally Posted by badair

Raise them again and let Bri' have the low hanging fruit

------)))))))))

Barry,

Here is another one (nachi member) who is next in line to lock the doors---)))))

• Condo/Town House to 1600 sq. feet $175
• Single Family Home to 1800 sq. feet $195
• Single Family Home to 2400 sq. feet $235
• Single Family Home to 3000 sq. feet $275
• Single Family Home to 3600 sq. feet $315
• Commercial or over 3600 sq. feet Call for Quote.

[Claude Lawrenson]

Thanks Steven, although I will partly agree - I would also caution that as long as there are 100's looking at entering this field, far too many enter it by low balling to get a start into the market.

Therefore I would say it may be a short-lived spike!

[Nick Gromicko]

Don't just let them die.... help kill them quickly. Go after more sellers and catch these inspections before the rest of the industry can even smell them.

[Steven C. Meyer]

Originally Posted by clawrenson

Thanks Steven, although I will partly agree - I would also caution that as long as there are 100's looking at entering this field, far too many enter it by low balling to get a start into the market.

Therefore I would say it may be a short-lived spike!

Once you are a low baller, new or old, that's what you will be know as, and it will be very difficult to raise prices and distance yourself from your old reputation.

New inspectors should start out at current market price, not the "I'll inspect for food" gig. If you are known as a low baller, then that's going to be all the business you will get, and ultimately people will wonder just "why" you are so low. If you are good at what you do, it will show in your price that you are worth it.

Having been in the construction industry for years, I was many times the higher price, but got the job anyway. It's called marketing and having the customer trust you.

Low cost does not equal quality, you get what you pay for, and most consumers understasnd that. Those who don't, would not be a customer you would want, they will expect a Cadillac for the price of a Chevy!

[James H. Bushart]

New inspectors (and a few old timers) rely heavily upon referrals from salesmen. Salesmen often shop for the lowest fee for their client.

I'll never forget the ASHI inspector in our chapter who told of the salesman who called him and asked him if he could "beat" $125.

Think about that for just a second. The agent had a home inspector for $125, and was still shopping.

[Steven C. Meyer]

Originally Posted by jbushart

New inspectors (and a few old timers) rely heavily upon referrals from salesmen. Salesmen often shop for the lowest fee for their client.

I'll never forget the ASHI inspector in our chapter who told of the salesman who called him and asked him if he could "beat" $125.

Think about that for just a second. The agent had a home inspector for $125, and was still shopping.

I must wonder if the agent worked that hard to get the best, lowest price on the house for the buyer????

Anyone want to place bets?

[dcook1]

Originally Posted by Steven C. Meyer

I must wonder if the agent worked that hard to get the best, lowest price on the house for the buyer????

Anyone want to place bets?

Steven,
of course he did,,,, would you ever doubt it???? (nope... no sarcasm there)
AS you said ealier, if you start as a lowballer that is a reputation you will not be able to leave behind.
THe conversation goes as.... how good is Joe? I don't know... he is cheap. What is his background? I don't know.... he is cheap! How long does he take for an inspection? I don't know.... he is cheap! What kind of report does he have? I don't know.... he is cheap! How honest is he? I don't know.... he is cheap!
I don't know.... he is cheap! is all they will ever remember. But some people figure that is the way to go. They never realize they downgrade themselves as well as the industry they work in by promoting themselves on I don't know.... he is cheap!