Originally Posted By: cradan
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. If you put together a business plan, with your cost(s) forecasted as closely and accurately as possible, you will gain an additional and critical perspective on what your pricing should
be. No point in deciding you’ll charge $249.00 for an inspection if your projected cost (all items taken into account) will be $199.00 for each inspection…you’ll need to charge a higher price, or do a whole lot of inspections right out of the barrel. In this example, albeit exaggerated, you’d have to do 1,000 inspections in a year to gross $50K for that year, pre-tax.
You'll need to have a pretty good idea of several things:
1.) Your per-inspection margin, or net profit. To get a pretty good idea of what this figure will be, you'll have to "pick" an average inspection fee, and you'll definitely
have to know what your cost per inspection is, right down to printer ink, licensing, continuing ed., miles on the batmobile, postage, marketing and health care (to name just a few among many other things).
2.) The number of inspections you're likely to perform in any given period of time (i.e. month, quarter, year, etc.)
3.) Your actual revenue goal (be it $20K $50K or $300K).
By understanding your cost(s), your goals (revenue) and their relationship
, you'll have some of the tools necessary (in addition to knowing what your competitors charge) to figure out where your pricing should
be in order for you run a successful business...
Chicago Illinois Home Inspections