In a state w/o licensing how do you market yourself?
I would suspect it’s as a “Certified” or “Full Member” of NACHI (or some other HI org.)…
How’s this really any different? You had to exceed minimum ‘standards’ to obtain those titles…
Years in the business and # of inspections completed should always be marketed when they exceed the averages for inspectors in your market…
You have to get them on the phone and sell your prices if that’s their first question. I tell them to ask everyone the ‘10 questions to ask a HI’ from the HUD website (to start) and then tell them to ask about insurance (a whole other can of worms I know:D )…
almost 90% of those that hear that spiel call back and book…
Marketing is what you do to get your phone to ring. Sales is what happens the moment you answer the phone.
In an unlicensed state where “all home inspectors are not created equal” we can market what we feel sets us apart from the rest and, when we get that call, sell the client on why they should pay our price. These opportunities appear to be rare in socialistic (state controlled) environments.
And, at the risk of opening that same can of worms, once everyone has E&O (in states thatmandate it) it no longer becomes a selling point, as it obviously is for you. Likewise with other factors thrown into the law…when everyone else has it, why should they pay your price?
Some argue that the state’s standards are basic and minimal, but the public perceives the state’s stamp of approval as representing the inspector as having what is essential and necessary.
I think the argument against the state setting minimum standards (licensing) because it gives credentials to lowballers is a false one.
There are plenty of credentials they can get (including nachi “certification”, CMI, etc) that will provide the appearance of legitimacy to lowballers.
Consumers do not expect that all licensed individuals and tradespeople are all equally skilled, nor that they all charge the same. No one opens the phone book and just puts their finger on the first plumber they come across simply because “they are all licensed”.
Marketing experience, credentials and training (as well as insurance and bonding) is a big part of business in states where trades are licensed. The longer you have been in the business, the more credentials you have, the more people expect to pay for your services - regardless of licensing.
Lowballers will always exist. The key to staying busy at a reasonable rate is not to compete with them, but to compete with the guys who are on the lower end of the center of the bell curve.
In other words, if the average inspection is $250 in your area, don’t try to compete with the $99 guy. But set your prices so that you can compete with the $225 guy (by offering discounts, or setting prices accordingly).
This is a strategy designed to keep you busy and bring in a steady flow of clients. If combined with other effective strategies (like Referral Rewards) it can multiply itself and eventually client referrals can become your largest source of business.
The public also percieves nachi’s stamp of “certification” as representing the inspector as having what is essential and necessary. And yet there are $99 lowballer nahci members, too. Should we stop offering “certification” so that the public doesn’t think that the lowballers are the same as the experienced vets?
Also, even in states where E & O is required (like PA) it can STILL be a marketing tool. Just because everyone has it does not mean that the public is aware that you have it. In fact, most guys tend to shy away from mentioning it for fear that somehow the mention of E&O transforms a client into a sue-happy vulture.
I take full advantage of this and tell them how consumer-friendly I am (BBB, Angie’s List, free AHW 90 day warranty, testimonials…and I carry insurance that protects you although our inspections are so thorough and complete we have never needed it!). It closes the deal and is a good marketing tool.
Just about anything can be a good marketing tool if you find the right angle for it. Licensing or not.
This is what I believe as well as how I market and do business…
Well said…
Those in states without licesning will continue to argue (generally) against it. It represents another hurdle or intrusion in a (mostly) unregulated segment of the industry.
Offer to do a complementarily through inspection of the property after they went with the low-ball inspector. Don’t divert off your standard inspection practices. Then let the results speak for themselves.
This way you can find out two things:
“True market range”- If your inspection report is similar or close to the findings of the first inspector, you will know the true level of market competition and can adjust your price accordingly. This information will help you adjust your prices based on data.
*]If your report is vastly different (more through), you prove your worth. Even though you won’t make money off the clients who went with the low-ball price. You might get some referrals out of them.
Dylan, I work in the same market you do. (Phoenix metro) While I cant say I have been really busy this month, I have been keeping busy. (13 so far in Oct) I charge $299.+ I rarely get price shoppers, and I haven’t had many people even question the price. This past week, 3 of my clients were repeats. I never make excuses or justify my price to clients. I do explain to them what to expect during the inspection. That being said, I have lowered my price in certain situations (single mom, repeat customers etc.) but not more than 10%
I am married to an MBA. (sigh) He has analyzed every aspect of my business. What the tools cost, printing costs, postage, insurance, licenses, down to how much gas I use marketing every week. I did not listen to his advice the first year I was in business (my mistake). After a year, I started listening to him and raised my prices, started marketing directly to individual realtors (not offices) As a result, business increased by more than 50% from the prior year. It increased again this year by more than 50% and it was suppose to be a ‘slower’ market. I may not like it, but, realtors refer most of my business.
In my experience, it takes about 6 months of marketing to an agent before they will pass my name to a client. I market primarily to women and women home buyers. Thats my niche. Yes, I do have male clients, but thats not where I spend my energy and money. For me, its all about the chicks. I go to their fund raisers, their luncheons, their jewelry parties… And it pays off.
If you are convinced you are worth what you charge, then, you are.
How many of those who are counting their expenditures against their wages (gas, insurance, etc) are also counting it against their taxes?
You can’t do both. I mean you can, but if you want to come up with your true pay per hour, then if you are subtracting it as a business expense you shouldn’t be subtracting it from your wages as well. By using it to mitigate taxes you are adding it back on to your hourly wage. So it therefore goes up. Most likely much higher than $12-15/hr.
Like I said above, find a niche, like a Jeff Pope, or a Dale Duffy, or a Cheryl Vowell. Then there is something that sets you above the pack and allows you to charge more.
Your first post in this thread reminds me of a story I heard once.
I’ll paraphrase:
A young lady was sitting in a restaurant and she noticed a very famous painter sitting at a table nearby. She went over to him, introduced herself and asked him to do a sketch for her. He agreed.
It took him about 10 minutes to complete the sketch and he handed it to her. She asked how much and he responded $5, 000.00.
She scoffed at the price and informed him it only took 10 minutes.
In my many years of business (and before you say it not all of which was as a HI) I have seen a great number of ‘experienced’ and long running times in business, and in my opinion, many of them should have retired many years ago. Police officers, career military, Postal carriers, auto mechanics, nurses and doctors.
In every walk of life, one will find experienced individuals that believe that they are the end-all, be-all due to length of time on job, but really couldnt hold a candle to a ‘new’ person thats highly trained, and on fire to be the best.
In my area, it wouldnt be anywhere near the same price. A soils engineer, and structural engineering firm will charge close to $1200.
A roofing contractor will be at over $200, and will not issue a roofing certification typically unless they installed the roof.
An electrician, if you can find one that will actually call you back, AND accept the job will be over $85.00 per hour, and the same goes with a plumber.
So, based on your comments, I have to believe you must be one of the lower end in pricing, and arent afraid to tell your prospective clients that you think that any higher quotes they receive are from HI’s out to get them, and that we dont deserve close to the same wage as the person that delivers their mail.
Yes Wendy they should. The new inspectors that come into the industry and lower there prices to get a foot hold hurt us all.
Do not tell me that new inspectors tell there clients that they have very little experience that why they are cheaper. I have been to many NACHI meetings and every time it always comes up Do Not Lower Your Prices it hurts everyone. Nick is a big advocate of that and I have heard him say it many times.
Also a new inspector still as to meet the same SOP that an inspector who has done 1,000 inspections has to meet. He has to inspect the same items and report on those items. If the new the new inspector cannot meet those standards he should not be doing the inspection in the first place.
The only way it would wise to, industry wide, lower the price of HIs would be if the HI was given full freedom from any and all possible litigation and liability.
As HIs we are putting our necks on the line every time we inspect a property- miss something and you can get hauled into court and be held accountable for the findings (or lack of findings). That is part and parcell of a professional service. If we have the liability as part of our professional trade, then we should be charging professional prices.
If we start thinking “If I lower my price, I’ll make it up in volume…” you’ll get into a world of hurt. You’ll start cutting corners to increase volume- that is the only way you could expect to increase your volume enough to make up for the price cut. Also you’ll be increasing your exposure. Lastly, what will you do when someone lowers the price again?
HI’s should get smart and not fall into the same mess as the construction tradesh (Cut throat price wars). Auto mech’s figured this out awhile ago.
Exactly. I will not apologize for selecting a profession (and it is a profession) that does not require 2-4 years of college when one or two lawsuits can put us out of business. My college was growing up on the jobsite. Although not accredited, it shaped me to become the good home inspector I am today. It should be noted that most every inspector I have met has far exceeded the state requirements for becoming a certified inspector.
In the last six months alone I have completed 42 hours of continuing education and are currently enrolled in code classes that should give me quite a few more. So yes, we do not have strict standards to become what we are, but we will be weeded out if we do not strive to become better, which is what I am doing. As a result, I feel that my prices are reasonable and fair and if given the chance, I would charge more.
Just the other day I was on an inspection with an appraiser and a termite inspector present. The appraiser came and left in twenty minutes and you know he charged as much as I did. The termite inspector left after thirty minutes and gave my client a clean bill of health. When I examined the stem wall inside the garage, I found a large termite tube. My client cancelled the termite inspector’s check and actually wrote a new check out to me with his fee included, stating that he’s not paying him if I’m going to do his job.
So tell my client that I wasn’t worth my fee, and that I should be apologetic that other career choices require more up front education and nothing after graduation.
I beg to differ, and will charge accordingly based on my passion to the field and my dedication to helping my clients.
