by Nick Gromicko, CMI® and Kate Tarasenko
One way to increase your profits is to provide services or items that increase the perceived value of your services – so that you can ultimately command higher fees – for more than it costs you to do or provide those services or items. This is measured by the perceived value-to-actual cost ratio.
Although “perceived value” is a term from the heady world of finance and
investment, the definition is straightforward: It’s the value attached to something by the
customer regardless of its actual cost.
When something is deemed “priceless,” or when someone says, “You can’t
put a price on it,” they’re talking about perceived value. And perceived value is arguably more valuable
to your prospects and clients than something they willingly pay top dollar for.
How are you increasing profits with high perceived value-to-actual cost ratios?
Here are the BIG THREE items that all InterNACHI® inspectors should be
taking advantage of.
At Number 3:
InterNACHI’s Now That You've Had a Home Inspection home maintenance book increases the value of your inspections by about $14 but only costs you $2.70 per book. That's a perceived value-to-actual cost ratio of about 5 to 1. This book also has the additional benefits of reducing your liability, as well as generating new referrals from past clients by anchoring your contact information on their bookshelf. Get the standard version, or have the cover customized for your business for just pennies more. It's also available as a Spanish-language PDF download, and a hard-copy version specifically for Florida homeowners.
InterNACHI’s "We'll Buy Your Home" Guarantee increases the
perceived value of your inspections by about $100 but costs only $5 per
inspection. That's a perceived value-to-actual cost ratio of 20 to 1. The Buy-Back
Guarantee also has the additional benefits of landing you more inspections and
reducing your liability.
And the Number 1 Perceived Value-to-Actual Cost Ratio item is…
...the Certified Master Inspector® professional designation. CMI® increases the fees you can command by tens of dollars per inspection, but costs pennies per inspection over your career. CMI® is the mother of all perceived value-to-actual cost ratios at about 200 to 1. And it has the additional benefit of landing you more inspections because your clients are hiring an inspector who has earned the highest professional designation the home inspection industry offers.
Let the Sizzle Sell the Steak
There are other ways to employ the perceived value-to-actual cost ratio strategy. Sometimes, it’s merely a matter of targeting a specific market.
For example, InterNACHI® promotes different types of inspections which are no different than standard home inspections that are performed according to the Residential Standards of Practice.
What are YOU doing or providing that increases the perceived value of your inspection services more than it costs you to do or provide them? Your perceived value can add real profit to your bottom line!