Being cheaper than other home inspectors as a marketing strategy. Does it work?

Is that for regular, premium, or High Octane?

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Probably why we hardly ever see a “Service Station” Anymore…

I remember working here at my dad’s Service Station, in Beautiful downtown Hanksville Utah in the early to mid seventies. Check your oil, tires (free air), wash your windows…And yes Ethyl was working cheap… at 27.9 …that was also back when Ethanol was sold in a Jug and was to get you tanked, not in your tank.

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I can still imagine the sound of the pump as the dial clinked as it rolled. And the very specific ding ding as you pulled in. Additionally if you chose self service, you could pump first then pay.

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Depends if I had taco bell that day. :wink:

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During high school I worked at one of the last full service stations in my hometown. Man, some people came in with so many bugs on their windshield I wanted to go get a can of brake cleaner, lol.

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Interesting if you compare the red states and blue states as to who is the cheapest. Or as Jim B says charges according to what they’re worth. Especially the bottom 15.

Overall cost of living, rent and housing prices tend to be much lower in Republican states while much higher in Democrat states. Affordability seems to favor the Republican states, while the Democrat states are more expensive.

There will be small exceptions, but exceptions are not the rule. Example, 6 of the 7 states that do not have state income tax are red states.

Are you surprised this extends to inspection fees?

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Some states have the majority of the population on the coast with thousands of condo rentals. Throw a $350 one bedroom into the average and it lowers the mean. Knock out 2-3 inspections in the same building by lunch and you’re doing pretty well. No basements in those areas too.

The graph didn’t prove anything when it comes to regulated, non regulated, blue or red states.

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Yes! LOL! :joy:

Thanks for this info Ryan , really good to know.

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That is called penetration pricing. Here’s a good article explaining different pricing strategies.

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If you start out low priced, you will always be low priced, the clients you attract will just go to the next new inspector that offers a low price. Typically this strategy ensures you fail financially, as it attracts no loyalty , the quickest way to fail

This is a better approach:

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Just start out by sending flyers to all of the local real estate offices that you’re doing them for Free. That should get your name out quick… :green_heart:

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This is the strategy that I used when I started our 12 years ago. I offered an “Introductory” rate of $125 for the first six months. I placed advertising in realty offices all over my area. After six months I increase my rates, to a more reasonable fee–still low, but closer to average for my area. Six months later I raised them again. I been a little on the high side ever since. What is important is that I have always strived to provide a thorough inspection with a well written report. I performed 72 inspections my first year and have been doing over 300 a year since my 3rd year and frequently turn work away because my schedule is too full. Now I’m moving towards retirement and am limiting myself to just 4 or 5 inspections a week.

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125 a typo?!?! How much do you charge now?

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When it comes to choosing a home inspector, price should be the least important factor. I don’t know about you guys but I have very seldom ever performed an inspection where the cost to repair issues and defects found, were at least as much and usually many times more than what the client paid for the inspection. And that does not count safety issues that might save the life of the client or a family member. If you are fully qualified to do a home inspection and can relay this information in a professional manner, you Do Not have to be Cheap and you can actually charge more than your competitors.
In my area I would say, 50% of the inspectors have been in business less than six months, not that there are that many more inspectors, but they rotate through quite quickly because they figure out that it takes many months or even years to become established and experienced enough and confident enough to charge what they should be charging. I know that I am easily the most expensive in my area and very seldom do I get someone that calls me checking a price, That they do not call me back and have me be book there inspection. (and I actually let them know that I am most likely the highest priced when they call)… Of course this is not the case if an agent is calling to check prices (most of them just want cheap as well as an inexperienced inspector that hopefully will miss stuff or cater to them and see that the home sells and get repeat business. (but then these are usually the agents that are also gone in six months).

I am very confident that I have never performed a home inspection and overcharged.

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Why do you suppose West Virginia is ranked so high?

The $125 price was a marketing gimmick to get a lot of realtors to try the new guy. My average fee, for this July, was $375, for an average 1795 sqft home. This equals about .21/sqft. I am in Phoenix where this is a little bit more than average. I should point out that when I started 12 years ago, realtors and their clients actually went into their offices to conduct business. This is where they saw my advertising. Today, no one goes to the office anymore, if there is actually an office someplace.

Once a realtor tries you, you have one chance to win them over and have them give you a second try. Here is what I offered:

  • A thorough inspection–
    • I walk the roof almost every single time.
    • I check the irrigation system
    • I check every outlet, switch, window, door that I can possibly get to,
    • I enter and crawl every attic that I can
    • I fill the sinks and tubs to the overflow and then pull the stoppers and flush the toilet. If there is a shower stall it is run at least 10mins during the process. This puts as much strain on the drains as possible.
    • In other words, I don’t cut corners to cut time.
  • I produced a well written and clear report, on site and I print and bind the report on-site.
  • I actually walk the property with the client and discuss what I found during my inspection–not just show a few pictures on the computer screen.
  • I call things as I see them and present them in a level head manner.

Before becoming a home inspector, I was a teacher for 28 years. (I taught shop classes.) I consider this a benefit as part of our job, as a home inspector, is to teach the home buyer the things that they need to know about their new home.

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