I just created this rate matrix recently, with a little bit of advice from one of the members from this forum, so I’m not glued to it, which is why I would like some more advice. I haven’t done any independent home inspections yet so I don’t know if these rates work or not. Please let me know.
Have you checked your local competition’s rates??? Discard the highest and lowest, average the remaining, add $25 to the average.
I don’t think anyone has been harsh. Membership has its privileges. . .
Yeah …get used to it as we chew and spit each other out for fun.
We chose this job because we like to criticize.
Good point.
What is the difference between NACHI and ASHI?
And if I can ask a personal question, what is the yearly income for a home inspector. What is the potential? I know it’s all about dedication, marketing strategies, pride of work, etc. But what are the proven possibilities of income for this?
Living in the Bay Area, I know I have the opportunity to charge a lot as home values are very high here.
When we knock you down, we help you back up.
All I have to say is , “Chumbawumba”
There is a inspector Millionaires club and there bankrupt inspectors, it is up to you.
Just read around ,all the life at this site and then go to Ashi’s site.
It becomes clear which is on the upswing.
yup yup…im new at this too…trying to figure out my market…i live in a small town…well not to small;) …if anyone could tell me how to get repo inspections… do i go to loan officers at banks or what??..im taking some flyers around the end of this week. Ive got to tell you all though…i have been cleaning rental cabins (3 story luxury type) to make an income till this is up and running…and i am for keeping the rates up for home inspection…right now i clean allllll day and make between 65 and 100 dollars 
…last year i was building them…cant do that no more…lol
What about doing “home inspections” inside high rise buildings, condos, and the like. There are a lot of those here in San Francisco, are there certain requirements and training that I would need or could I use all the same tools as for a regular single story home inspection?
and the market
As a newbie, that is a formula for failure.
Since I read your descriptions and found that for a full inspection of all systems, your price is higher, I am not worried that you are underselling.
Shop your competitors (the main ones, guys who are established). Throw out obvious lowballers (anyone who is $199 when the competition is $299 and up, for example).
Take the lowest competitor and price yourself to compete with them.
While many here will howl at the advice, they cannot deny that there are WAY more price shoppers than there are boutique shoppers. Ask home inspectors what question they get asked most frequently, and most (if honest) will tell you “How much?”
For those that worry about where your prices are - let them worry. It isn’t your problem. You are trying to capture all the work you can, and having an attractive price will help you close sales by accident.
I was where you are once. (I also used to be an interNACHI member) I tried the “price high” method (which I call the nick overprice strategy). My phone did not ring. Local realtors know the guys who have been around awhile and can justify that kind of rate. Clients can tell on the phone when you are a little raw, and can’t back up your prices. I was not booking inspctions.
So, I re-evaluated my strategy and took an aggressive price strategy. I read, and askedquestions (like you are) and followed the advice of Russel Ray (a guy here who has alot of good marketing advice). Business took a HUGE upswing. 3 months later I added more RR ideas…more business. And so on, and so on.
His advice was dead on accurate and worked perfectly. Most guys will howl at the advice and offer some pablum like “you are worth what you charge” or “you get what you pay for.” Nonsense. Do they shop at the most expensive gas station, because by their reasoning that must be WAY better gas? Do they willingly pay more for their tools or insurance - because price dictates quality and value, right?
The truth is, you are only as good as you are. And only you know how fgood you are. But even the best, most qualified inspector needs to start somewhere and without a sudden influx of business he will be a very qualified inspector working for someone else.
One last note - develop a busines plan and amarketing plan and stick to them. Write down your plans, goals and objectives (it sounds silly, I know, but written goals are harder to fudge, ignore or slough off).
And keep asking and reading. Good luck!!!
Regarding ASHI or NACHI… you really need to find where you fit in the grand scheme of things. I used to be a NACHI member, and a very active one. When I joined, I liked what I read, like you may.
There is a lot here. There is also a whole world outside of here. You need to find what best suits you. For me, that is not InterNACHI. There are people here I respect highly (Russel Ray, and Dale Duffy to mention just two) and things that I found helpful.
I have found that I am happier elsewhere, but I would not have known that had I not participated here first. My advice - take all the advice (even mine) with a grain of salt, and take all the hype and cheerleading (for any assocaition) with a fistful of salt (most of it never pans out to anthing).
Again, good luck!
So if I am reading right and not in some kind of night mare your mentor wannabe is telling you people calling will know you are new to the game with no experiance but will hire you anyway.Hmmmm
What kind of idiot will call for a professional inspection while looking to save 25 bucks on a million dollar investment.If they are so keen on knowledge that they can tell you are new , what the hell are you needed for?
The reason people ask what the price is right away is because they do not know what to ask and your job is to answer the questions they should be asking.By the time you are done answering questions and letting them know what you will do for them they will be happy to hire you.
This is unless you have no idea what to say your self in which case they will not hire you anyway.
When JM is refering to price shoppers I suspect he is refering to Agents (nudge ,nudge).
You can bust your butt and and do quick inspections for them with your eyes closed while increasing your risk of getting sued for being to scared of losing all the low pay business your partner(opps) referer is sending you.
Of course at this point it will be to late to become a good inspector as none of your past clients will be refering the blind inspector.
I guess the choice is yours.
As for myself I spend time studying and learning so that when called upon my reputation will not suffer.
When it comes right down to it you are selling yourself and your reputation is all you have.
How does MJ sleep at night (ask him for I do not know)
I sleep well knowing that I go for the high end intelligent people that will boost me up to where I know I belong.
A bottom feeder is just that and may have early sucess of some sort scmoozing with vested interest parties but in the long run a man that displays knowledge and passion for what he loves will win out.
Ten years from now I would like to be looked up too and not looked down upon , (how about you )?
When you are underpriced you know it in your heart that your sub-conscious will prevent you from doing the best you can for your client as you"ll feel under paid as you work.This will show in every step of your dealing in the business.
Sorry if this is heavy talk, but it is what it is.
Robert,
Maybe my area is different from yours, but agents don’t price shop here. All price shopping calls are clients. Agents just call to book.
The reason people ask for prices is that they care about getting value.
Also, if you set prices to compete at the high end of the market and cannot offer honest answers (it sounds like you are a man of integrity, so I know you would’t lie or hide the truth) to "how long have you been in business, “how many inspections have you done,” or “what do you do that is better than your competitors” then people will know you are a newbie.
It is fine for you to pursue the high brow clientele - you are established in the business.
But to tell a rookie to chase those same clients at that end of the price spectrum does not make business sense. There are more price shoppers than there are boutique shoppers by about 10:1 (I equate them to good consumers, not bottom feeders, but I guess you buy the most expensive gas and don’t clip coupons). If I am trying to get my foot in the industry door, I am going to try to claim my piece of teh largest number of clients I can.
Each client is a potential referral (acutally 4 potential referrals: buyer, seller, 2 agents) . So, the more inspections I do, the more future business I can potentially generate (another reason not to ever say anything as silly as “I won’t start my truck for less than $XXX”). And so on, and so on.
The change in pricing strategy saved my business at the start, and helped me become a multi-inspector firm within 3 years.
EVeryone has something that works for them. For most newbies, agressive pricing will work (of course you need to know your market and your costs, too).
And I have never been on any job where I hav done any less than my absolute best for the client - regardless of price, size of home, or amount in the client;s checking account. So that crap about “knowing in your heart” and “subconsciously” underperforming is a load of BS!
Bottom dwellers probably harm their clients, very probably harm their own businesses, and damn sure harm our industry… IMHO.
Jm I had a suspicion but was not sure that you were a multi -inspector firm.
This is far different from being a single inspector as sole proprietor.
McDonalds sells cheap hamburgers because of volume in the same way you can sell cheap inspections thru volume.
Sorry if the term cheap feels …well cheap but it is what it is.
I myself am a newer inspector and have never on this forum tried to hide that fact.
Has it cost me any business ?
Not other than my first few calls , which occured due to the fact I was dumb enough to answer the question how much without realizing that is not the proper procedure.
I have made great point to mention that untill six month’s ago I could not type , though some may argue that still holds true.
Now back to subject if you are going to get into this business and make a go of it you had better begin having confidence and telling someone to come in and work for peanuts as he drags the prices for thr market down is not my way of helping the profession.
Look if you have other guys working for you and the fees are on the low end then they must be making lower than low which is quite low.
I would guess you are grabbing these guys while the snot is still wet and dripping down their noses.
Not trying to insult you personaly but feel that by spreading your methods to others it will bring down the entire trade.
I can only guess that your inspectors stay for a short time and then wise up.
I also have got to wonder how a guy in a town so small can find that much business unless sleeping with the agents.
Sorry again but I speak my mind.For you to get enough business in a small market area and have enough left over that you can hire others for low wages you must have an inside position that would only come through nudge ,nudge ,wink,wink.
You seem like a nice guy when I have read your threads but the philosophy of turning us into being regarded as unskilled labor to be hired out cheap is something I’m against.I have put to much effort into training myself in being the best inspector I can be and intend on doing this the rest of my life.
I will not sit still while someone cheapens what I love.