Pricing ?'s

Do you guys use the InterNACHI price calculator to figure client quotes? Or have you found it more helpful in gaining business to offer a flat rate while starting out? If so, what’s a good number for the Kansas market area?

We are flooded with 175.00 guys here. I do not convert all of the price shoppers but I wouldn’t want them as clients anyways.

Price shoppers, IMHO, aren’t really price shoppers. Thus, if all you do is answer their question, “How much do you charge?” you’ll automatically lose them. Instead, think of it this way:

People know very little about what a home inspection is. What they do know, though, is that it’s going to cost them some money. So the first question they ask, naturally, is “How much do you charge?” Take that as an invitation to talk with them, find out their concerns, find out who their Realtor is, find out how they got your number, etc.

Back in the mid-2000s, a guy called me and asked, “How much would you charge on a 600-SF condo?” At that time, my price was $249. He complained and kept asking me if I could lower the price, give him a bargain, help him out, etc. After 30 minutes I told him that the price was now $299. “WHAT? Whaddaya mean? How come?” he asked. “Well,” I said, “I charge $100 an hour. You’ve wasted 30 minutes of my time, so if you want me to do the home inspection, the price is now $299.” “No, no, no!” he exclaimed. “If you can do the inspection this Friday at 8:00 a.m., let’s do it for $249.” I did.

Several years later he called again, gave me his name, and asked me if I remembered him. The name sounded familiar but I didn’t really recognize it. He told me about our dickering over price and then I remembered.

Well, he wanted me to do an inspection on a home he was buying. It was a nice 3,300-SF home on Santa Catalina Island overlooking the Avalon Harbor. To do something like that I would have to be gone all day. Since I was averaging about $5,000 a day at that time with 9 employees, I quoted him $4,999. He asked me if I could meet him at the Coronado Naval Air Station at 8:00 the next morning. He flew me as the only passenger in his 23-seat jet from Coronado to the Island. I did the inspection, toured the Island for the day, and he flew me back that evening. A 12-hour day with $4,999 all by myself. Nice day.

Turns out that he had just got his pilot’s license when I did the condo inspection for him and had gone to work for his dad who owned a military shuttle airline that shuttles military between all the bases in California, Arizona, Nevada, and Utah. Turns out that dad had died and left the airline to my Client.

I have always treated every customer in every business I’ve owned as the most important customer in the world because you just never know…

Derek …

Realtors love a flat rate, so they can tell all their clients what you charge AND with a flat rate they don’t have but 1 number to remember. Makes the REA’s feel useful OR smart I think.

Now the question is which flat rate do you give them. The one of the 650sf condo; the one for the 2,400sf house; or the one for the 6,800sf mini-mansion.

Always remember the #1 rule … Be fair to everyone BUT especially the most important person in the real estate transaction … Yourself.
Where in Kansas are you at. **

For Example we got a good amount of low ballers in KC, BUT as a whole Wichita is way lower priced for home inspections than Kansas City or most other areas in the state is … Lot of the ashi inspectors down in Witcheeta set their fees low 20 yrs ago OR did flat rate and it stuck.

Huh? Those early morning margaritas are clouding your thinking, Dan. Everyone knows the Realtors are the most important people in real estate transactions…

Was told that BUT, to my way of thinking … Its me

lol,…only according to** Realtors** :mrgreen:

I use the calculator, It works for me. Its quick and simple and I can easily give a quote in a few min on the phone while I talk with the client about home concerns. I like to ask them a few questions and listen while I plug in the needed information.