Thread: Pricing

Originally Posted by Nick Ostrowski

The last thing I want to do at my inspections is launch into a sales pitch. That's what the phone contact is for. Personally, I would find it very off putting that an inspector would tell me as a buyer or a potential user of his service that if I pay more, he'll work harder and do a better job.

Exactly

You are there to do an inspection. "Now folks, while I am here and I am going to be here for the same amount of time I can throw in a Quick scan with my IR camera here for another 100.00. Lets see now, you are going to point that camera under the second floor bath ans around the windows and spend no extra time doing it for another hundred.? "Sure, I will pay the extra hundred if you spend a few more minutes in the attic or looking at the HVAC" :Also if you have one of those handy free home warranties or free termite warranties or you still have that number for the free Alarm/security check could you throw all that is as well.

Sorry, I deal with some pretty intelligent folks and the last thing I want to do is dumb them down to sell them something else

I just don't get it why everyone relies on all the wiz bang stuff of up selling when the value of an inspection is ALREADY THERE. IT IS THE WIZ BANG SELLERS THAT ARE DESTROYING THIS PROFESSION. 3 OUT OF FIVE INSPECTORS ARE ALREADY TRYING TO OUTSELL EACH OTHER ON FREEBIES AND WIZ BANG ENLIGHTENING PRODUCTS, GOD FORBID THEY JUST TALK TO FOLKS ABOUT A HOME INSPECTION AND THE BUILT IN VALUE IT ALREADY HAS. Other inspectors are being forced into complying with and adhering to the new standard ...... dumbing down the value of a home inspection and putting a higher priority on on the upsell items.

The set up to the clients for alarm companies with their name and number as well as the home warranty folks and the termite folks all pounding them afterward to sign on the dotted line. I think that is harassment at its worse.

Future home warranty harassment ... sign here.
Future termite warranty harassment... sign here
Future Security company harassment ... sign here

Like I keep saying. Nothing comes for free.

I think they are going to look at you with the head tilted to one side and eyes crossed.

"Sir, I just want a thorough home inspection. Can you do that?"

But then again, most people can be sold all kinds of goodies if the word free comes into play.

Anyway, enough of this. Off to work now.

Robert didn't use the word "Packaging", but that is what I think he is describing.

Offer package "A" which consist of ...
Package "B"
And package "C", "D", & "F" if you want to.

Include whatever you want in the packages.
Customer decides which package is right for them.

Lots of examples of this:
Oil change
oil change plus top off fluids
oil change, top off fluids, and tire rotation

Basic computer, 40 gig HD, 1 gig mem, 17" monitor
Upgrade to 80 gig HD, 2 gig mem, 19" monitor, added software

Standard warranty
Extended warranty, with on-site service

Camera
Camera with case, tripod, lens cleaning kit, neck strap

With alarm systems, that's how it has been done for as long as I know of.
Basic alarm: doors and motion
Upgrade to Smoke, Panic, and Med alert.

Do you want an apple pie with that

It is not unethical.
It gives the customer the ability to chose what level of service they want to have.
While at the same time, allows you to offer different levels of service without accepting all the risk associated with offering only one level of service.

Ted,
I see in the discussion that there is a problem with definition of terms.

Bait and witch is by most common understanding the process of not having the item offered at the bait price and then switching to something else. Where there was no ability to provide to the buyer the bait item. Meaning that if you said that you wanted the bait item you could not buy it or it would not be delivered to you.

Selling up from one item to another is called sales. You used manipulation in car sales to redirect the customer to a pricier car unless in fact there was no car that was available at the advertised price, then that would be bait and switch. You see adds that, in the fine print, state there is only x number available at that price.

The process of selling in involves manipulation of the buyer. How that buyer is manipulated becomes the real issue.

The concept of a teared pricing structure is something that I have not given much thought to in the past. I have always looked at the service offered is at a maximum level and would not have really thought of doing less. Sort of one size fits all. First class is the only seating available. Only one way to perform service. But if a client does not want the maximum coverage they should have the ability/right to choose what level of service they really want.

Offering a client the option of a $99 check list minimal, only meeting the very basic SOP requires by state law if in fact there is a state law that addresses home inspections, would be good for the client. There are many that only perform to the minimal requirements of the SOP by law, but charge $300 or more. Would it not be in the best interest of the client for them to see that there is a difference from a basic SOP inspection and one that exceeds the SOP ? The client would be educated to the differences in the inspections and thus would be able to make an informed buying decision. Unlike as it stands now the client really does not have a real grasp in the differences between the people doing the inspections and what the client is really getting for the money expended.

By having a teared offering and the client then understanding that differences do exist, then the field is leveled for the price shopping customer.

As the service provider you have to be time efficient for profitability. You also have to be diligent to meet the SOP to the letter of the law (if the Law exits in your state), else to be able to demonstrate that every aspect of the SOP that you state that you follow was met.


Sears built a sales empire on the good - better - best concept.

Also, Sears system would offer a sales item ( washer) for a low price and would expect that the sales person would sell up and also sell a maintenance agreement. The sales item was a loss leader. The profit was in the maintenance agreement. Profit was in the higher priced washer. Also, profit in the credit card operation. There was no profit in selling just the price point washer . But, there was always inventory of the item on sale and the customer could have it with out the add ons. No bait and switch. Only selling manipulation of the customer, up selling.

I understand what Robert is saying and I understand what you are saying Ted. I think both of you are actually on the same page but just are caught up in terms and definitions. Philosophically probably coming from the same place.

It would be great if all SOP were elevated to a real professional expert level. As it stands now so often the SOP is used as the base line for the mediocre inspection and report that is to often offered. Granted, something (SOP) is better than nothing. The organizations, schools and State Laws use the SOP as the generalist line to retreat to rather than a line for the professional expert to meet and the exceed.

Lisa you wrote:

..."LOL! Looks like someone doesn't know the difference between marketing and sales. "...

Well, It may be that I look at marketing as the extension of sales. Sales is more than just a physical activity. What you may have been taught in school or classes you have taken may be slanted. Marketing is directed at selling an idea of some kind. Marketing is a sub function of sales (selling). Without the concept of selling (generic) marketing does not exist. This is not a chicken and the egg concept. First the atom is created then the universe follows.

When I see your use of ..."LOL !"... what you are marketing/selling is non professional. A type of response that I would expect form a child making a snide or flip remark depicting their lack of maturity or ability to respond in a meaningful - mature - professional manor. Which you should take as constructive criticism and not as a demeaning comment.

Originally Posted by Garry Sorrells

Ted,
I see in the discussion that there is a problem with definition of terms.

Bait and witch is by most common understanding the process of not having the item offered at the bait price and then switching to something else. Where there was no ability to provide to the buyer the bait item. Meaning that if you said that you wanted the bait item you could not buy it or it would not be delivered to you.

Selling up from one item to another is called sales. You used manipulation in car sales to redirect the customer to a pricier car unless in fact there was no car that was available at the advertised price, then that would be bait and switch. You see adds that, in the fine print, state there is only x number available at that price.

The process of selling in involves manipulation of the buyer. How that buyer is manipulated becomes the real issue.

The concept of a teared pricing structure is something that I have not given much thought to in the past. I have always looked at the service offered is at a maximum level and would not have really thought of doing less. Sort of one size fits all. First class is the only seating available. Only one way to perform service. But if a client does not want the maximum coverage they should have the ability/right to choose what level of service they really want.

Offering a client the option of a $99 check list minimal, only meeting the very basic SOP requires by state law if in fact there is a state law that addresses home inspections, would be good for the client. There are many that only perform to the minimal requirements of the SOP by law, but charge $300 or more. Would it not be in the best interest of the client for them to see that there is a difference from a basic SOP inspection and one that exceeds the SOP ? The client would be educated to the differences in the inspections and thus would be able to make an informed buying decision. Unlike as it stands now the client really does not have a real grasp in the differences between the people doing the inspections and what the client is really getting for the money expended.

By having a teared offering and the client then understanding that differences do exist, then the field is leveled for the price shopping customer.

As the service provider you have to be time efficient for profitability. You also have to be diligent to meet the SOP to the letter of the law (if the Law exits in your state), else to be able to demonstrate that every aspect of the SOP that you state that you follow was met.


Sears built a sales empire on the good - better - best concept.

Also, Sears system would offer a sales item ( washer) for a low price and would expect that the sales person would sell up and also sell a maintenance agreement. The sales item was a loss leader. The profit was in the maintenance agreement. Profit was in the higher priced washer. Also, profit in the credit card operation. There was no profit in selling just the price point washer . But, there was always inventory of the item on sale and the customer could have it with out the add ons. No bait and switch. Only selling manipulation of the customer, up selling.

I understand what Robert is saying and I understand what you are saying Ted. I think both of you are actually on the same page but just are caught up in terms and definitions. Philosophically probably coming from the same place.

It would be great if all SOP were elevated to a real professional expert level. As it stands now so often the SOP is used as the base line for the mediocre inspection and report that is to often offered. Granted, something (SOP) is better than nothing. The organizations, schools and State Laws use the SOP as the generalist line to retreat to rather than a line for the professional expert to meet and the exceed.

Lisa you wrote:

..."LOL! Looks like someone doesn't know the difference between marketing and sales. "...

Well, It may be that I look at marketing as the extension of sales. Sales is more than just a physical activity. What you may have been taught in school or classes you have taken may be slanted. Marketing is directed at selling an idea of some kind. Marketing is a sub function of sales (selling). Without the concept of selling (generic) marketing does not exist. This is not a chicken and the egg concept. First the atom is created then the universe follows.

When I see your use of ..."LOL !"... what you are marketing/selling is non professional. A type of response that I would expect form a child making a snide or flip remark depicting their lack of maturity or ability to respond in a meaningful - mature - professional manor. Which you should take as constructive criticism and not as a demeaning comment.

There is no "upselling" in home inspection. There is no cheap version or expensive version. There is a full narrative report in Texas. The legal end of what we inspect is, well, everything and in depth. No matter what state anyone lives in, there is no such thing as cheap and expensive versions. In what one calls a cheaper version they are ripping folks off and running thru the home clicking a hand held and ding check list. As someone said. If they cannot see the value in a home inspection being in the mid 3s then sell with a value added extra to get there. That is not "upselling. That is doing more work and getting paid what you should to begin with. As far as the free give away. That is only dumbing down and removing value from the actual home inspection. That is completely my point. Selling the value of a home inspection is where the real sale should be. We are not selling oil changes, brake jobs, window treatments. We are providing s very substantial profession to folks that know nothing about homes and saving them small fortunes in some cases. This came from my phone and the folks are here ..... gotta go.

Originally Posted by Nick Ostrowski

The last thing I want to do at my inspections is launch into a sales pitch. That's what the phone contact is for. Personally, I would find it very off putting that an inspector would tell me as a buyer or a potential user of his service that if I pay more, he'll work harder and do a better job. Now if this is all outlined beforehand and the buyer was given his choices, maybe somebody could make this work. But I just can't do an inspection and have different gears for different inspection prices. It's all or none.

I'd have to agree with this.

I offer one inspection at one price. If they want me to pull out he IR camera it is $100 minimum unless I choose to do it on my own. Why?, because it cost me $5000! And by the way, Ted it adds alot of time to my inspection and report.
This is offered before I ever set foot on the property and not offered during the inspection, they have already made the decision.
The camera paid for itself the first year.
If I could think of other "upsells" I would gladly include them but would offer them prior to the inspection, not during.
Jeeze, I miss Dan already!

Originally Posted by Benjamin Thompson

I offer one inspection at one price. If they want me to pull out he IR camera it is $100 minimum unless I choose to do it on my own. Why?, because it cost me $5000! And by the way, Ted it adds alot of time to my inspection and report.
This is offered before I ever set foot on the property and not offered during the inspection, they have already made the decision.
The camera paid for itself the first year.
If I could think of other "upsells" I would gladly include them but would offer them prior to the inspection, not during.
Jeeze, I miss Dan already!

BJ, just wondering what types of things you charge for using the IR camera. Do you charge by the hour or bid per job?

I offer to check for voids or missing insulation and evidence of moisture intrusion with the caveat that that if it hasn't rained recently we are just checking for insulation deficiencies. $100 for 2000 sf or smaller and + $50 per 1000 sf.
If it is not in conjunction with an inspection I charge $100 per hour including travel but have had very little call for that.

Originally Posted by Benjamin Thompson

I offer to check for voids or missing insulation and evidence of moisture intrusion with the caveat that that if it hasn't rained recently we are just checking for insulation deficiencies. $100 for 2000 sf or smaller and + $50 per 1000 sf.
If it is not in conjunction with an inspection I charge $100 per hour including travel but have had very little call for that.

I am not differing with you in the slightest. You are not up selling you home inspection you are adding a very value added service for a fee on top of your home inspection. You are not giving away services in the slightest. Like I said, you are also not dropping the cost of a home inspection and then adding a service to bring it back up to where the home inspection should have been in the first place.

5000 for a camera plus any other expenses like training and such as well as added knowledge. You need to charge for the EXTRA service.

Like I said you are not up selling your home inspection or dumbing down the home inspection value and then adding other (free) services to get it back to its value. You are adding value on top of your home inspection and making more money.

I don't know how it is around where you live but around here it is a race to the bottom price for a home inspection and then still to get the inspection 3 out of 4 inspectors are racing to see who can add on the most services for free. It is an insane practice. I cannot think of one food item or service or toy or auto or anything that I am paying less for. I am paying more for everything I can possibly imagine. So in the absolute worse case scenario home inspectors should be at the least holding their prices if not increasing prices.

Don't know how many more ways to say it. We are on the same page.

Ted,
Sorry that I may just not be using the best words to explain the idea of tearing the offered services.

Up-selling --- IR camera added to home inspection.

Cross selling --- out building or pool inspection added to home inspection.

I am not very familiar with Texas and its state forms. But as a informative question, is it possible to meet the Texas state requirements in one inspection process and be able to inspect the same house to a higher/more exhaustive level? More than what the state requires to meet its' basic minimum requirement for the inspection.. Something akin to building to code or exceeding code requirements.


Also, lets not forget that a home inspection varies widely across the country. Different states have different laws and regulations, if they have them at all. Discussion of an idea may have more applicability in some states and less in others.

Originally Posted by Benjamin Thompson

I offer to check for voids or missing insulation and evidence of moisture intrusion with the caveat that that if it hasn't rained recently we are just checking for insulation deficiencies. $100 for 2000 sf or smaller and + $50 per 1000 sf.
If it is not in conjunction with an inspection I charge $100 per hour including travel but have had very little call for that.

Nice..., Good for you.