Am I overpriced????

General Inspection Topics General Inspection Discussion
#1

Hello all. There really isn’t a category to discuss pricing of services, and I usually don’t like to do so, but I have had a few potential clients tell me recently that I am priced higher than competitors, and I have lost a few jobs because of it. I have been doing this now for several years, and I have only had this happen once or twice up until about 6 months ago. I bet I have lost around 10 jobs in less than 6 months. I try to monitor competitors pricing as best I can, and I adjust my pricing as needed. As far as I can tell, I am still about the lowest in the area. I am wondering if this is just people trying to get me to offer a lower price? I started by offering a $25 discount, and even $50 in some cases, but people still said it was higher than they were quoted elsewhere. There are only a handful of Inspectors in my area, and like I said, I am below average in price as far as I can tell.

A typical house in my area can generally be described as follows: 1800sq ft, 3 bedrooms, 2 full baths (maybe a half bath too), eat in kitchen, and two other living rooms (living/family, family/dining, etc), 2 car attached garage, full basement.

Pricing in my area would run anywhere from $200 on the lower end to $350, or even $400, on the higher end. Mold, radon, and WDI are additional costs.

Given this information, what do some of you think is reasonable? I just can’t believe with some people out there charging upwards of $400 for an inspection that I am actually losing business for being “too costly”.

As a side note, I am adding air quality and mold inspections to my services. (Don’t currently offer it) I am looking for input on the type of equipment and supplies other people use, the labs that people use, and the fed charged. (Use the example house above as comparison, and assume the house doesn’t have a known mold issue)

Thanks!

#2

Welcome to the message board. First, what sets you apart from the rest? Why should someone pay more for you than everyone else? Value has to be established before you go into price. Also, please edit your profile so we know where your at and can better help you. I tried to go to your website but it said it was down.

#3

Its never about price, its always about value…two otally different things.

If you lower your price, to me, what does that tell all the people that used you in the past? You were never worth that amount? Never decrease price, increase quality and service.

If you have nothing to make yourself stand out, this will happen all the time. You have to offer something others don’t or you will just fade into the crowd…

#4

Andrew I can’t tell you how many countless times I’ve been hired over many others in the St. Louis area just because of my website. Start there.

#5

Andrew, take this one to the “Members Only” section where Google and potential clients won’t see it. :wink:

#6

I’m in Kansas City. In my area, I have seen 1,500 to 2,500 sf homes (2 to 2.5 baths; 3-4 bedrooms; 1 HVAC system; under 50 years old); being inspected and being done for a fee of $185 up to $375.

I know about 14 of those inspectors that will do the home AND termite inspection for from $195 to $275. Another 10 or so inspectors will do both for $275 to $325.

My fee for home and termite up to 2,500sf is $425

Another inspector I know charges $450 for his base inspection AND $75 for a termite.

Pick your level of competency.

#7

How does price equate competency? So if I charge $1,000.00 I am more competent than you?

#8

#1 fill out your profile here so we know who and where you are.

#2 Follow Billy’s comment on Website.
When someone calls you, they don’t know you from Adam (sorry Adam).
You never have enough time on the phone to get all the business out of the way and tell them about you to the point they know and trust you.

The web site should not copy everyone around you.
It should not say the same thing, they have already been somewhere else and don’t need to hear the same thing.

If you can’t blow off 10 low ball seeking phone calls, your just not worth the price you expect to get.

Business is Not about what you “didn’t make”.

You are up against the biggest non-business types there are in the Home Inspection Industry. Amway has better businessmen!

Didn’t your mother ever ask you; “Just because everyone jumps off the bridge, would you?”!?

Has your competition factored in lawyer fees for the law suit pending?
Have you?
Sometimes you can’t not afford the price of doing business.

It’s harder to raise prices than it is to lower them. Don’t take the easy road, it doesn’t lead anywhere.

#9

My primary phone line is unlisted / unadvertised.
Calls on that line are by referall only (Broker or Attorney)
Price is never an issue or requested prior to completion of the Inspection.

#10

Yep. Without exception … 100% of the time in each and every case … an inspector is paid what he is worth. Those who are paid less … well … they know their value to the consumer better than anyone else.

#11

Every successful businessman I have ever met has the exact same advice.
“Unless you are Wallmart and high volume never sell to the lower end”

Leave WallMart Inspection to low end type Agents preferred list Inspectors.

Get a reputation for being detailed and working hard for your client on a personal one on one type level.
Those are the clients that will glow about you to their friends and relatives.

Unless you are a big time inspection firm with multiple employees you actually have an advantage of having the time to do all those extras that a client will notice to make you stand out as a premium Inspector.

Someone looking for the best and already paying $500,000 plus will not worry about paying a little extra for a guy who has time to talk and educate them on site.

The big boys often are doing 3-4 a day and simply can not compete with a personalized service.
Use small size to your advantage.
Billy said work on your web site and he is correct.
You also have time to work on your report presentation and other aspects of marketing that the larger companies may simply have on cruise control.
Good Luck.

#12

As Nick Gromicko will Tell You
His Home Inspection Company (when he was competing against me)
The Phone Number was Unlisted…

It is very easy to justify your fee
when the number they called
can not be obtained
thru any other source
(other than client referall)
:slight_smile:

#13

Russell -

You’re absolutely right / No you’re not, but your market may bear it - most guys markets won’t. I used to know a guy I believe in Tampa that charged $1 psf, AND 10 years ago an inspector in Stanford, CT that started at $500 no matter how small; and another in Sedona, AZ that didn’t go out the door for under $475 on anything.

What I should have said to Duke was PICK the level of PEOPLE you want to COMPETE against.

#14

PICK the level of PEOPLE you want to COMPETE against.
Good one:):):slight_smile:

#15

Dan’s statement is very true.