I raised my rates by approximately 5% at the beginning of the year.
Inflation is actually more than that. But I felt 5% was an adequate increase at this time.
Did you all raise your rates?
Inflation or not, I adjust my rates every year.
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I did the same Cory
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Hi Cory, though initially this post was about gas prices, I think there may be some good info embedded.
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I did the same, I raise my rates 5%. I am fortunate whereas the price of gasoline does not affect me most of my work is within 6 miles.
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I have raised my rate this year. I also have added a gas surcharge based on the miles, and cost of gas. My pilot gets 20 mpg. I figure it this way: miles÷ 20× price of gas. I have never had a customer complain.
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I adjust my prices on every job…
I made a spreadsheet to do proposals.
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Wow! Within 6 miles, that is incredible.
I drove 5 hours one-way to a job last month (not normal), but I do drive 1.5 hours to jobs every month. And my Tacoma only gets about 15 mpg.
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I get the same mileage with my truck. The furthest I’ll travel is about 25 miles. That’s the edge of my territory I don’t go any further. Too much ripe fruit close to home.
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That’s awesome!
Here in the Far West towns are small and travel is necessary. I’m sure I will shrink my territory as I get more established.
Funny story: I live in a town of 6000. And there are at least 10 inspectors based here. So obviously we all travel. Nearest small city (Eugene/Springfield) is 12 miles away. The next two closest are both 35 miles distant.
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I average about 30 miles one way currently. I drove 90 miles one way earlier this week. I too am hoping to shrink my territory as I get more established. This is my 2nd year and I raised my prices about 8.5% from my first year.
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Almost everywhere I go it takes an hour, either due to mileage/distance or gridlock.
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After reading the replies of others, I should elaborate…
I adjust my BASE RATE every January, which includes the first 10 miles (one way).
The Feds adjust the Standard Mileage Rate every December for the following January (for every mile I travel beyond the first 20 miles RT).
Like David…
Every job is adjusted for everything relevant to said job.
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Same here base rates went up 5%. The bid is based on:
- Square footage
- Age
- Foundation
- Distance
- Home value. I bid more for a 2,500 sq.ft. House appraised at 1 mil than 400k.
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That’s my life as well.
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Also factor in, (at least in my area) home prices have nearly doubled in the past three years and so we do have added liability. I have increased my prices up to the point to make the maximum amount of money for the time that I have available to do the inspections. I figure if I’m so busy that I am turning away business, my prices are too low. It is a supply and demand. I have also raised my prices especially on older homes as these take much more time to write reports.
If anyone is feeling guilty about raising your prices, think of the real estate agents out there where their 3 to 6% is now double the commission that it was just a couple of years ago, due to the idiotic raise in home prices. (At least in my market).
There are plenty of cheap inspectors out there that will do inspections for those that are shopping prices. I can easily say that 90 to 95% of the home inspections I do will uncover issues that if repaired by qualified people they will get back my inspection fee many times over… And that does not count any safety related problems that might save a life. Never apologize for the cost that you are charging for an inspection, just explain why you are worth it, as opposed to cheap.
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Jeffrey, the fed adjusted the milage rate last month to help with the cost of gas. I use mile IQ. They adjusted to the current rate, and notified me of the change.
Any recommendations for mileage tracker apps? Free vs paid? I drive a Silverado and between inspections and driving to realtor offices the price of gas is hitting me pretty hard. Thanks for the advice!
Martin,
Do you answer your own phone?
And do you answer it when in the field?
I get calls all times of the day asking for pricing. When I am not at my computer, I have to guesstimate bids. My bids are based on simply age and sqft.
Thanks!
My rates are based on the current local economic winds, sometimes I’ll actually lower my base rates in slower times, such as winter, then raise them back up in the spring.
As for inflation, no, I haven’t raised my rates for that reason.