New Mitigations - Raise Your Prices

Hate the Haters.

Mike, That would really work for the flippers and the investors. Try pitching to the real estate investor community. There are a bunch of these networks. They focus on the foreclosure market. Thanks for the Idea.

As stated before, business 101:

A gross profit margin of 0.33:1 means that for every dollar in sales or service, you have 33 cents to cover your basic operating costs and profit.

As in any business, there needs to be a certain percentage of profit/overhead. If you are getting 1 in 20 hits, then you are paying $34 per inspection brought in (based on $1.80 per click fee for your adwords campaign). One spends on average per inspection say $10 on gas and tolls, $14 on federal taxes and SS , and 1 hour to perform the inspection and write report. Based on an $80 inspection. That leaves $22 profit, not including any expenses such as office supplies or cost of maintaining licenses. That $22 per hour is not good business in my opinion. I can’t imagine how much profit you can make on a $55 special.

I prefer to keep the conversation public. It is an open message board, and I don’t intend of being offensive or aggresive to you or anyone else who charges ultra low prices. Just trying to understand the business side of it. I understand the idea of having low prices for a short period of time to get you name out there.

A $70 inspection give a margin of 0.17:1 = Bad Business, Time to go to business school 101 Mike.

You would think by now that your business would be built on reputation and not on price. Hell, I cannot work due to my accident, and I am still booking 6-10 inspection per week (using other inspectors) because of my work ethic. Yes, I still loose some because of price, but not many.