We need to at least keep up with the drop in the value of paper money.
It is hard to compete when any home buyer in the KC area can get a full complete home inspection on any size home with termite inspection for $249.
Don’t compete on price. In your particular area, perhaps your home page should have a link that reads:
“Why pay me an extra $100 to do your inspection”
Anyway, we need to keep up with inflation at least.
We’ve had two nutty administrations in a row now that have both basically said “Hey, American’s don’t have much money, let’s just print a bunch.”
Don’t let your fee structures get caught chasing inflation. Keep up.
Okay, it’s not like the phone is ringing off the hook anyway…so, WTF I’ll raise my prices today. That’ll surely start it ringing.:mrgreen:
Nick you are completely right. Also to expand we should at a minimum keep the same pricing if not raise it a little as more and more states adopt Licensing it is starting to weed out the riff raff and legitimaize the profession thus allowing us to keep the prices up. If the only way you can get an inspection is to be the low baller, then your time is limitted anyway and you are just killing the industry…
I guess a $330 to $350 base price wouldn’t sound any scarier than $325 to a potential client. At least half of them anyway. I have about half of my clients call up to “schedule a home inspection” and we don’t even get to price till the end of the conversation. The other half ask the price first (they never get it right off the bat though) and then schedule or not. I’ll think on this awhile.
Make sure your sales approach makes $150 sound a lot “scarier.”
We did raise prices as of today.
](http://www.facebook.com/FloridaInspections?v=box_3#!/FloridaInspections?v=wall)**Honor Construction and Inspection Service We rented office space in Melbourne and will be moving there in the middle of January. **
Great advice, Nick.
What advice do you have for those inspectors who still depend upon real estate salesmen for the majority of their business?
Now that they are no longer able to depend upon equity to pay their commissions, the sellers of used houses are more sensitive about adding additional expenses to the cost of selling/buying a home to their own. Many are focusing on “short sales” and the “as is” foreclosure sales as an excuse for bypassing an inspection and many are promoting the low dollar soft reports that (as they refer to them…)“their” home inspectors are willing to provide. How do these inspectors escape their rut without endangering their own mortgages?
Alright, instead of posting something sarcastic and useless, (as I did earlier and then deleted) I will ask a question.
Do you think raising your prices, which I am all for, in a really slow period is a smart move? There are highly regarded inspectors slashing each others throats for the few houses that are being sold. The way they are killing each other, I end up being one of the higher priced guys anyway. I will not reduce my prices, so the high end is where I sit.
I feel I should wait until sales increase. What say you guys and why?
The 2010 inflation rate was 1.1%. So to do as Nick suggested, and at least keep up with inflation rate, a $5 increase should cover it.
If the only thing that an inspector has to offer is a lower price…he should keep his prices low.
Those inspectors who have more to offer should highlight and promote those offerings to the public…and charge for them.
This year the season should be good( in my area). Gas prices are rising along with everything else. We all should up the service and charge more while the economy is slow. Charge more but tell them that you are not charging for something like a roof cert, IR or checking sprinklers. This adds value but increases your bottom line. When your business is good simply charge for the discounted stuff, effectively raising prices twice. This way referrals see it as a reorganizing of you pricing model, not increases.
Base price was 300, now it is 350 but the sprinklers are included(I used to sell the sprinklers for 25) Now everyone pays for sprinklers. When I get busy you add 25 for sprinklers again. This adds value and increases the bottom line, now.
Why this advice so late I raised my prices by $50.00 for the basic back in the first part of November and have not looked back. I Remember thinking this guy has to be off his rocker back in 2004 when you would make the same statement. I probably am the highest priced HI in the whole State of Okla and had my best year in 2010
Good advice Nick I am getting outbid by too close.The only difference between $25-$50 is money. If I am considerably higher it will be easier to sell the difference. Set the standard dont be the standard:cool:
“Nick you are completely right. Also to expand we should at a minimum keep the same pricing if not raise it a little as more and more states adopt. Licensing it is starting to weed out the riff raff and legitimaize the profession thus allowing us to keep the prices up”.
When home inspection laws, not only in Kansas, but nationwide, have SOP’s that state a “representative number” is only one, low ball inspectors will be the norm, and they can and will perform basic, soft report inspections, all shrouded by state laws. Until state laws and their SOP’s are firmed up, veteran inspectors are out in left field. It is all about price; not service. People behind the scenes who influence lawmakers, are now part of our society. Until the political processes are changed, the consumers, and tax paying Americans, are getting shafted. Licensing is not legitimizing our profession. It has hurt us, and home buyers nationwide, in a negative way.
It has helped in the state of MD. Now i dont have 100 home inspectors doing 5 inspections a year.