Hello everyone, I need some advice on how to handle a buyer who is asking for a discount based on the amount of times he has used me.
This will be the 3rd time he has hired me because he backed out of the previous two deals based on the inspection findings.
He responded to my inspection appointment email saying only “I just want a discount. This is the 3rd time I have used you so please give me a discount.”
I understand times are tough right now for folks, as they are for me. I’d like to be nice but at the same time every dollar counts at the moment. The other factor is the buyer’s agent is one of my top customers and I dont want to jeopardize the relationship.
I usually will voluntarily give a discount in advance of $50 on the 3rd inspection. If a customer or potential customer asks for a discount, I am pretty blunt and simply ask them which part of the house they would like me to skip for doing the inspection for less money? Once put into those terms, it generally drops the question. I have been fortunate and have been busy as of the past 2.5 months since COVID hit, and hate to see a job go, but my time can be spent on a full price job just as well.
My advice,
Never discount your value!
Your reporting apparently kept your clients from making two bad Investments. You have saved your clients thousands already and their asking for a discount?
It happened today; client ask for a lower price so I ask him which part he don’t want me to inspect. He replied: which parts are included, and which part I think is not necessary to inspect. I replied that I can’t tell which part unless I inspect them…
There is a cost to acquiring business. Some inspectors pay lead generation companies a small fortune just for a lead. I am willing to give a repeat customer a small discount because I not only don’t have to work as hard or spend as much to get the job but, a repeat client is also a known quantity. That has value too.
Exactly. A large portion of my new business come from these same Clients that I offered discounts to. It is at the point I rarely do ANY advertising anymore. I only pay a small fraction for advertising of what I did years ago while building my reputation and repeat/referral business.
In my opinion, “price” is not written in a stone…!
A discount or price cut is always subjective, I will grant a discount for repeating business and in this occasion I will do a “Preferred Realtor Discount”, sharing the credit with the agent will pave the road to more business from that Realtor.
Unfortunately with our business there is no economy of scale, it take the same amount of effort to inspect and produce a report for each home even if it is for the same client. The client has seen your work product and knows the quality of your services. They could take a chance on another unknown home inspector.
If you apply similar logic you should discount on a home that you may have recently inspected.
I usually give a small discount but not much as you still have the same level of liability and effort required. I do give a larger discount to clients who are investors and have used me on multiple homes. I never give a discount based on the promise that they are going to buy multiple homes and use me for all of them. First one or two are at the going rate as most never deliver on their promise.
Note: Even after I offer a 10% discount to my prior clients ($50 max) my fee is still higher than at least 75% of my local “competitors” on any given day!
(And that is the real key… charging the right fee to begin with)!!
It’s up to you but I explain; 1: I did not pick the 2 prior homes. 2: My reports save you money and gave you the piece of mind knowing the condition of the home.
Personally, I do not mind if they retain another inspection company. I can fill a week in 2 days most weeks. Time off becomes a luxury when you are busy for months.
