Thread: Pricing

A few weeks ago I had some changes done to my site.
One was on the front page I put Inspections from $199.
* Condos and Townhomes under 1000 sq. ft.
Then had a link to other pricing on another pg.

My results, for 3 weeks I had 2-3 calls every day, when I gave a quote for a non-condo, I got I thought your fees were $199. I'll call you back.
Despite all my attemps to sell myself I don't believe one called me back.

About a week ago I changed the wording, now I only get 1-2 a week looking for /thinking my fees are $199. for anyhome.

My concluson, thank goodness I have a good referral and repeat customer base. I must suck at selling myself, or todays buyers are cheaper than last years buyers.

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Granted you may suck at selling yourself
However I don't think that's the real issue. Take your pick here, 'smart people or people who aren't unrealistic' aren't going to call when they say that ad. They know better. They know it's either advertising BS or a crappy inspection. Cheap or unrealistic people will actually look for those types of ads thinking there is something to it.
They are the same people who see an ad in the paper for a new garage for $6999. and believe its true. Yes possible but highly unlikely.
It's not you, its them.

You can't sell yourself if the first thing you discuss is money or price...
Once they have heard your price, the conversation is over and their on to calling someone else.

rick

I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote

Dan, Scary when you realize that these are the same people who read inspection reports.

Originally Posted by Eric Barker

Dan, Scary when you realize that these are the same people who read inspection reports.

Isn't that the truth. I don't know how a few are still thinking it with my current wording. My web guy couldn't believe it when I called him to change the wording.
Like Marcus indicated they saw a price and didn't look any futher.

Well, look at this way, at least your website is generating traffic!

95 percent of the people calling for a quote will not call back and thank the inspection gods they don't. It's been my experience these people are always a huge pain in the ass.

This is a fact. You could sell a Home Inspection $ 199.00 and people would buy it. Now if you then show them your contract that you only inspect a limited amount items of the home and your reports are lest then 5 pages.

They would still buy that from you. as long as its cheap the people you are talking about will come out from under the rocks for that bargain

They don't care what they are buying just as long as its cheap and they think they are getting a deal...

Best

Ron

Originally Posted by mathew stouffer

95 percent of the people calling for a quote will not call back and thank the inspection gods they don't. It's been my experience these people are always a huge pain in the ass.

This has been discussed before. My opinion is exactly yours but so many will say "Ah, not a problem".

I have found that the harder they try for a discount the more they think you are not worth your salt which is foolish because they are calling you to find concerns in their possible new home. What a tremendous contradiction.

They also tend to expect an unrealistic value on what you should put forth. They truly believe they may hang with you and hound you half to death and question your every move. Again, they are hiring you to find concerns so one would think they would have a built iun start on trust.

I was referred in the past by a good inspector and found I was not worth my salt putting up with people. The more I tried to show them the more they were already looking somewhere else or still hanging back on something already looked at and discussed. After spending 2 1/2 hours with them after I already spent an hour and a half there by myself I got a complaint from a Realtor from them that they were not happy because I spent so little time with them .... and I lowered my price because the other inspector only would have charged xxx.

The Realtors unbelievable assault while I was on the roof with her talking from the ground about how I should talk with her clients and how I should present my findings and she purposely got there early to go over all this with me just about had me jumping off the roof and leaving. I actually missed inspecting the sprinklers and cam back the next day to do so only to hear more about how unhappy they were because I did not spend enough time with them.

My God man. I was about to scream but continued to keep my cool with this Realtor and clients for the sake of the inspector I got the referral from.

This was a total turn around on how I inspect. At my inspections the Realtors never interject. They never try to put their do it this way and do it that way and say this and don't say that and I am here to tell you. At my inspection (yes mine, because I have not gotten paid yet so it is in fact my inspection) I am in charge as I should be as well as all inspectors should be. You are the professional. You know what a home inspection is and what it is not. You decide how to address the clients so they have that full understanding that they are going to pay you to inspect and find the concerns and go over those findings in a structured controlled manner that everyone understands completely.

Now back to the cheap. Yes, the cheap. I have said this a thousand times. We may be in a recession and the inspection business is certainly not the same as it used to be .... but, this is absolutely not the time to get into some strange mind set like "well, these times are not the same and everyone is expecting a discount and break so we must go with the times" Also "The times call for different measures and everyone is adding every service they can think of not only for free but they are also lowering their cost for a home inspection so we have to go with the times"

Say Whattttttttttttttt? Are some of you folks serious. Everything on the planet is costing more, everything! The value of the dollar goes down weekly! Now let me see if I get this straight. We must lower our costs because everything we do and everything we buy costs, more???????????????????????? and the amount of inspections have decreased?????????????????????????????????????

Is this someones sick sense of humor, or what? Let's add one more thing. Everything cost more, we make less and do fewer and fewer inspections and new inspectors come on here on a regular basis wanting to get into the business.

Did I like fall off a truck and hit my head or is something seriously wrong with this picture.

Thank God I have a nice inspection tomorrow and one on Thursday AM and I am able to help out another inspector tomorrow because of a decent inspection and I got this inspection from ..... another inspector. All I can say is thanks. Thank you very much. The favor will be returned.

Home Inspections for $150!
That's right, only $150!
I'll inspect your Dog's home for only *$150! No hidden fees! No Extras!
Have your favorite puppy call to set up an appointment NOW!

*Does not apply to people homes in which your puppy may reside.

I would not inspect a home for $199.00 I don't care if there were 100 backed up. It's too much work and I put in to much time and effort to do a good job. It takes me 3 hours and another 3 hours of paper work back at the office. It's time to raise the prices. What do you think you are worth? Then charge them for it! I have had them ask, How much??? I say I'm a member of NAHI in good standing and then sell myself, tell them the price at the end and by then they don't care what the price is. If you are a good sales person you can sell a used tooth brush and make them think they are getting a good deal. Raise the price!!!!

WE HAVE A PROBLEM BOYS... For the 6th month in a row the price of a home has gone down... We just don't know what the bottom is at this point in the game. Gas is on its way up. And then we have guys out there doing inspection for $ 199.00

We all work to hard for the money we make...

Just keep working your market and stick to your guns.

And then vote next year. For less hope and change.

Best

Ron

Originally Posted by Eric Barker

Dan, Scary when you realize that these are the same people who read inspection reports.

You got that right Eric. I did a 9600 sq.ft'r last week and I can't remember how many pages the report turned out to be but of everything on the report he calls me today and asks if the exhaust fans venting to the attic was that serious?
Not one question about the several pages of electrical issues I had on the report.

Rick

Originally Posted by Ron Bibler

WE HAVE A PROBLEM BOYS... For the 6th month in a row the price of a home has gone down... We just don't know what the bottom is at this point in the game. Gas is on its way up. And then we have guys out there doing inspection for $ 199.00

We all work to hard for the money we make...

Just keep working your market and stick to your guns.

And then vote next year. For less hope and change.

Best

Ron

Ron it's a dog eat dog world out there. Last week I turned down matching a $225 inspection fee, including a termite insp. on a 2400 sq. ft. home, that was provided by one of them on-line super certified master guys

Next year I'm voting for a LOT more silver colored change, tired of pennies in my pocket.

Originally Posted by Robert Humphries

Let's take a play out of my playbook as an inspection industry vendor.

When I attempt to sell my product to inspectors, I usually hear, "I can't afford that right now. Money is tight. Can I get a discount?"

Now, you would think that if I'm investing four months of my time and money to create something that is designed to MAKE YOU MONEY, it would be worth whatever I charge. Fact is, most inspectors believe I am undercharging for a product that they can't afford at the already low cost.

You see, guys, your "price shoppers" don't mind paying $400 for an inspection. They just don't want to pay it all up front because it hurts to do so. Whether they have the money or not, people who are dropping tens-of-thousand of dollars to buy a home begin to assign a "priority value" to things based on their perception of importance.

Once again, this is about perception.
It also helps to VALIDATE your "worth".

Modernize or get out. I don't care how "old" you are (or think you are). You don't have to be "tech savvy" or an Einstein. Just don't be so afraid of getting screwed-over that you aren't even willing to go on the first date.

Next time someone calls you and asks about "price", why don't you try asking something like....

"Because times seem to be tough for a lot of people, we've decided to allow you to pay the inspection fee in two installments. Is that something you'd think you'd like to do instead of making a lump-sum payment?"

BAM! As soon as they say, "Yes!", you've got a new client (or you've at least gotten them to engage you for longer then five seconds.)


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Robert, great info.. In your 2nd sentence it looks like you may of gone to the place where the org owner tells inspectors everything is free.

Have you tied placing an add here? I suspect there are a lot of experienced pros here that would be more than willing to pay XX $ in a couple low monthly payments , instead of a lump sum for some additional marketing tips

OMG. Dan, your website un-sells your inspection services.

I must suck at selling myself

"The home inspection business is different than most any other business in that you (the home inspector) never meet your client until AFTER you are hired. That’s right -- when you get out of your truck at the inspection site and introduce yourself to your client, s/he has already hired you. There is almost no salesmanship involved in the home inspection business. Success relies almost solely on marketing. But where should an inspector market? Well, a home inspector’s clients are nearly always home buyers. And many of these home buyers are conveniently all in one place… online. They are online touring new homes, researching schools, emailing their real estate agents, shopping for mortgages, and looking for home inspectors. And since you will not have an opportunity to sell your inspection services in person, it is important that your website be capable of doing your selling for you. To a potential client, your website is a sample of what you and your report are going to be like. It makes little sense to drive traffic to a website that doesn’t represent you well. The door to your website is your homepage. It is the most important page of your website. Most of your visitors will never even click through to your other pages if your homepage doesn’t make them want more. As a home inspector, you might work on some of the most expensive real estate in the world, but no home is as valuable, per square foot, as your own inspection website’s homepage. The right homepage can generate you many thousands of dollars in inspection business, if it is designed correctly. You only get one chance to make a good first impression. Make sure your site doesn’t un-sell your inspection services." Borrowed from Nick Gromicko's article on the subject.

Originally Posted by Lisa Endza

OMG. Dan, your website un-sells your inspection services.


To a potential client, your website is a sample of what you and your report are going to be like. It makes little sense to drive traffic to a website that doesn’t represent you well.
. Make sure your site doesn’t un-sell your inspection services." Borrowed from Nick Gromicko's article on the subject.

Ahh Lisa, I don't re-call stating I wasn't getting any calls from my web-site, before trying to sell your crap, and chest pounding, maybe you should try a little reading comprehension first. here's a starter link. Reading Comprehension 101

Hey Dan, if $199 doesn't work, maybe try offering inspections for $99. LMAO!

Are you sure you don't want to take a little peek at Nick's articles on inspector marketing?

Originally Posted by Lisa Endza

Hey Dan, if $199 doesn't work, maybe try offering inspections for $99. LMAO!

Are you sure you don't want to take a little peek at Nick's articles on inspector marketing?

NO! I want to get more.
The $199. guys that I'm referring to/competing with, are certified by nicki, I can only assume they are already using the info. from nickis marketing articles, and figured they need to charge less than everyone else to get work . D:

Originally Posted by Ted Menelly

I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote
I am calling for a quote

Dont even get me started. I hate that shtuff..

Originally Posted by Lisa Endza

OMG. Dan, your website un-sells your inspection services.

"The home inspection business is different than most any other business in that you (the home inspector) never meet your client until AFTER you are hired. That’s right -- when you get out of your truck at the inspection site and introduce yourself to your client, s/he has already hired you. There is almost no salesmanship involved in the home inspection business. Success relies almost solely on marketing. But where should an inspector market? Well, a home inspector’s clients are nearly always home buyers. And many of these home buyers are conveniently all in one place… online. They are online touring new homes, researching schools, emailing their real estate agents, shopping for mortgages, and looking for home inspectors. And since you will not have an opportunity to sell your inspection services in person, it is important that your website be capable of doing your selling for you. To a potential client, your website is a sample of what you and your report are going to be like. It makes little sense to drive traffic to a website that doesn’t represent you well. The door to your website is your homepage. It is the most important page of your website. Most of your visitors will never even click through to your other pages if your homepage doesn’t make them want more. As a home inspector, you might work on some of the most expensive real estate in the world, but no home is as valuable, per square foot, as your own inspection website’s homepage. The right homepage can generate you many thousands of dollars in inspection business, if it is designed correctly. You only get one chance to make a good first impression. Make sure your site doesn’t un-sell your inspection services." Borrowed from Nick Gromicko's article on the subject.

No salesmanship? Success relies almost solely on marketing....You on crack?

Originally Posted by Robert Humphries

but Nick's article isn't a "solution". It's a series of suggestions and affirmations.
The ONLY thing that can, and will, work 100% to assure that an inspector gets a sale at whatever price he wants is for that inspector to ask for the sale from as many people as he can until someone says "Yes". Period.

Oh, and this crap that some inspectors have on their Websites about, "You will not meet me until after you hire me..." needs to go the way of the Dodo Bird. It's amateurish and desperate. Consumers aren't stupid.
With respect,

Robert

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Dang gumit Robert! Nickis elete are dropping out like flies here, , now you come here on an open site, and start telling them nickis marketing stuff sucks, the ones on their last legs may believe you and change their marketing.

Originally Posted by Robert Humphries

Mr. Dan, I have many iNACHI clients, and they are some of the kindest and most talented people I know. The hardest inspectors to work with (regardless of affiliation) are the "association frat boys" because their proverbial glass is always full. (I consider them Greek-life frat boys who've adopted their associations as a fraternity or brotherhood when, in fact, it's supposed to be a fee-based service provider and lobbyist ~ aka, a VENDOR).

It doesn't matter to me if a clients is iNACHI, ASHI, NAHI, CREIA, TAREI, etc. What matters to me is that the client actually want to learn and grow. I absolutely hate investing any time, or selling any product, to any inspector who takes a lackadaisical or nonchalant approach to building their business. It's a waste of my time, and I'd rather not accept their money (if I knew they were like that up-front). I have, in fact, turned many of those types of clients away. When I, as a vendor, have more passion about the inspection industry than the guy who works in the industry to put food on the table for his wife and kids, then maybe he and I need to be talking about his next career choice instead of deploying an SEO strategy on his Website.

Success in any industry starts with igniting a passion for what you do and whom you serve. It's only after inspectors make the decision NOT TO FAIL that they'll be open to exploring ways NOT TO FAIL. Otherwise, they'll just end up in a rut and using these message boards as a virtual adult daycare to wallow in self-pity and nostalgia.

Just my 2-cents.

-Robert-

--

I have seen your products Robert. Pretty decent comparing with other avenues out there.

I have to tell you Robert, a few folks (that are fairly successful) have made comment that Robert is just a we bit full of himself. You must reflect a bit to what you write. As I said, decent products. But I also have to tell you, you do not and will not ever have all the answers. Anyone applying anyone's product will turn things a bit. When one comes off like They Are The Bomb on a constant basis it does tend to get a bit old after a while. There are many things that will improve most businesses bottom line but some wish to go a different road in life.

If you read your posts you are just a we tad condescending to most, like they are the turds and you are the turd cleaner.

Present you products Robert. Elaborate a bit on those products. To be the screaming commercial that you are the bomb and unless everyone does what you say they are the turds ..... it just doesn't cut it but then again..... you already know that.

Some folks will work marks until they find that the marks cannot be turned. As soon as they realize that end they turn away from that mark and is no longer that marks best friend because he cannot gain anything from that once potential mark and he becomes useless to you ..... next!

And that little scenario is what the life of sales is all about. Some folks just don't live like that. It is not the most important thing in life. They won't prey on the meek and down trodden. They hold a particular line in front of them that they will not cross. Others will cross any line if it is the end to their means.

Everything to you is sale or no sale. Life is a bit more real than that.

The post I just quoted from you told everyone on the planet everything about you and your business. There are certain things one in the business such as you really needs to not speak out loud. After all you are all about nothing but gain. Everyone should be your best friend or your want to be their mentor should be forefront over all. After all a mark is never a dead mark. He only goes away on vacation and when he comes back you are suppose to have a new tactic to win that mark over and make that gain.

But of course you already know all this ... don't you?

Ted, it looks to me like Robert is passionate about his business, just like you are passionate about your business!
It got me interested enough to take a look at what he does.
Most of the posters on this forum are "full of themselves". So what?
Seems to me he was offering some free marketing advice. You are the one always complaining about no business. Seems like you should welcome free advice.

Originally Posted by Robert Humphries

Can we all get back to finding solutions and sharing relevant insight?

-

Here's my contribution. If you have something on your website that you feel grabs a buyer's attention or will make them remember your website in particular, don't bury that memory maker somewhere in your site where somebody has to search for it. Put it at the top or very near the top of the front page of your website. If buyers are only going to spend very little time perusing a site, then you don't have time to waste.

Personally, I feel everybody needs to get over their problem with "I'm calling for a quote". As much as we would like all callers to be educated about the home buying process and ask us the questions we feel are important, it just doesn't work that way most of the time. People call and ask what they know about and that is pricing. My guess is all of us had no problem with these calls when we started inspecting because we were happy for the calls and any work they brought us. What has changed? I read where many inspectors say things like "price shoppers from my experience end up being the most difficult buyers to deal with". Is it the buyer who is difficult or is it the inspector who is less tolerant than in years past? I get price shoppers calling all the time and if I hung up on everybody who stared a call off with "I'm calling for a quote", I'd have a lot of free time on my hands.

The important part is that you have somebody on the phone. If they have unrealistic price expectations, then by all means move on and don't waste your time. But come to the understanding people will always shop by price and that will never change.

I'm late to this conversation but I will say it anyway. In 1956 when my company was started it was thought that applying a fixed percentage of the selling price to the cost of a home inspection was a good way to go. Many if not all of the folks who went into this business in the 50', 60's and 70's thrived on this fee structure. Everyone had whatever they deemed necessary as a minimum and then charged 1/10th of 1% of the selling price as their fee. It was the higher of the two amounts (minimum or percentage) that became the fee. A simple example would be that a one million dollar house would have an inspection fee of $1,000.00. This was becoming an accepted way to charge for inspections. No one questioned it because it was the norm. Like Realtwhores. Lawyers were charging a percentage as well so it was beginning to get traction. You chose your inspector based on reputation, service, referrals.

Late 70's and early 80's when the boom of people started to get into inspections is when it all fell apart. In the old days we sold our capabilities, reputations, and our service for the percentage fee structure. The new guys sold their lower prices. Even today, many many years later, there are very few people (if any) who get a $1,000.00 fee for a million dollar house. Based on the pricing structure now, it is easy to get into the business. Just cut the prices your competition charges. The old way gave reasonable compensation for the responsibility of the inspector. We made money. I am not sure the profession will ever get back to being the profit center it should be. Just think of how nice it would be never having to have the "how much do you charge" conversation.

Just my two cents.

"Would it even be possible for the inspection industry to employ something similar under a common governing entity?"

Great question Robert.

The answer is no. It is called price fixing but the conversation should at least be at the top of the question list so maybe many inspectors will have some kind of range where the bottom should be so we can all make a decent living from the wealth of knowledge we pass on to our clients.

Rick,
What do you charge for 10,000 feet. Just curious. Guys around here do it for 800. I called one of them and asked what he was doing

If Realtors have the NAR to establish a "reasonable commission structure", then why can't inspectors unify under a similar banner to do exactly the same?

It would be very difficult. We'd need a professional trade association that has tens of thousands of inspectors operating in over 60 countries around the world in nine languages performing dozens of different types of inspections. An association that has hundreds of government-approved courses. An association that has its own online TV show that offers video training. An association with an inspector graphics library, articles library, narrative library, An association with its own inspector marketing department. An association that controls thousands of websites generating millions of inspection leads around the world An association with a 3/4 million post message board dedicated to the inspection industry. An association that administers hundreds of free inspector marketing programs and provides hundreds of business success tools. An association that has been awarded over 700 government approvals. An association that offers tens of thousands of dollars worth of free membership benefits. An inspection association with a 235,000 page website that gets over 260 million hits a year.

Hey, wait a minute! I'm describing InterNACHI!

LOL!

Originally Posted by John Ghent

I'm late to this conversation but I will say it anyway. In 1956 when my company was started it was thought that applying a fixed percentage of the selling price to the cost of a home inspection was a good way to go.

That sounds like a really bad idea!
Do you want to inspect the really nice 5000 sf home for $1000 and the run down POS 5000 sf home for $300?

The fee structure based on sale price is very flawed as Benjamin pointed out. The most realistic ways to set fees are based on interior square footage, presence of crawlspaces, exterior structures, multiple HVAC zones, etc. I like it when I am able to charge by the hour too. Some people will call and know they are buying a larger house but are muddy on the details which makes it difficult to set a fee. In these cases and when houses are larger, I advise the fee is based on an hourly rate with as long as it takes to complete the inspection.

I wish I could get everybody to agree to an hourly fee.

Originally Posted by Lisa Endza

It would be very difficult. We'd need a professional trade association


LOL!

This professional association? http://www.inspectionnews.net/home_i...class-act.html

Or is it this one.. http://www.inspectionnews.net/home_i...sociation.html

Originally Posted by Nick Ostrowski

I wish I could get everybody to agree to an hourly fee.

How about $500 per hour? I would bet everybody would agree to that

Originally Posted by mathew stouffer

Rick,
What do you charge for 10,000 feet. Just curious. Guys around here do it for 800. I called one of them and asked what he was doing

Hey Matt,
what do you guys get for 10K?
I personally dont have a fee schedule, I just price it as I feel necessary base on MLS pics and a converation with the buyer. For example I bid an inspection for a 6700 sq footer the other day for 2200, but then did a POS 1800 sq footer for 900.
So..., what did they say to you when you called them?

Originally Posted by Marc M

Hey Matt,
what do you guys get for 10K?
I personally dont have a fee schedule, I just price it as I feel necessary base on MLS pics and a converation with the buyer. For example I bid an inspection for a 6700 sq footer the other day for 2200, but then did a POS 1800 sq footer for 900.
So..., what did they say to you when you called them?

Check this out Marc - 2nd I've heard of them

I'm doing an inspection the other day for a client, I was inspecting a second home for them in Palmdale as they had cancelled on the first due to the inspection... it happens.

Anyway, he tells me of his friend buying home right around the corner and tells me a bit of his friends inspection, I indicated that I make my living on doing a good job and obtaining referrals. He said... Tim, I gave them your number, my/our agent said "Tim Spargo is an excellent inspector, but very expensive (?? I think I work too cheap @ times). Our office (KW) is using a 2 person team that gets them done in less than an hour and always less than $200"

3300 Square Foot Ana Verde home.. "Rough Shape" - 45 Minutes and $195. Anyone who inspects homes in this area knows to take a pretty good look at them. I spent 3 and a half hours on a lot of them, they have some particular issues. The one yesterday had VISIBLE SHEAR FAILURE RIGHT THROUGH THE STUCCO... Talk about expansive soils, holy cow.

Ed R. (a listing agent I know) and a couple others have told me about the butt-raping they are doing to home buyers and the good laugh some of the office folks are getting about guys like me getting NUBBED OUT. Ed said that the report and the inspection are both an embarrassment to the Home Inspection industry.. too bad.

I asked if my Client got to look at the report and his friend refused... he mentioned his friend asked for my card and may "give me a call about a couple things he still had a question about"

I guess it's a couple guys in a mid size pickup. I dunno much else, mum is the word. UP TO 5 and 6 inspections a day..

Hey T,
Actually I didn't get that inspection for that big house I was referring to. There was too much work to do to it so I referred him to a few contractors to give him bids for the bigger issues. It wasnt worth the money.
I'm getting so sick of these guys that you are speaking of (elite?). My wife, who is an agent, gets their spam emails all the time. "Flat fee" inspections and so forth. It's sad that we have to deal with a totally crappy economy, (getting worse and even worse yet when super inflation kicks in) we now have to deal with these yahoos. Let me know if you get a copy of one of those reports, just curious to see what it looks like.
I suppose the other side is that agents should know better. They should have more integrity. You have a good name out there and I'm sure it took a long time to get it where it is. We have to charge a lot because we know what it takes to provide good quality service.
Unfortunately, there are still buyers and agents who look at this trade as merely a formality, and not a true necessity.
BTW...., what is with all the wind this week?

Do you guys charge for re inspections if power or whatever was not on? How much?

Originally Posted by Marc M

Do you guys charge for re inspections if power or whatever was not on? How much?

This has been addressed several times here. It "appears" it depends on the persons business decisions.

Originally Posted by Marc M

Do you guys charge for re inspections if power or whatever was not on? How much?

I do... when I can. Oddly enough, I try to bill the *guilty party*. When we all show up and the utilities are off, and have to return to the property a second time. I have sent a number of bills in the last year to the listing agent... Not only have I been paid (although not always) I have received a phone call and apology for the inconvencience. I can't spin my wheels for free, but don't feel it's fair to attach the buyer for something they had no control over.

Has it hurt me? Maybe, but at the same time I have received referrals from those who have paid said fees to me. I simply handled it in a professional manner.

I handle return visits in different ways, but try to be accomodating to my clients when I can.

Originally Posted by Tim Spargo

I do... when I can. Oddly enough, I try to bill the *guilty party*. When we all show up and the utilities are off, and have to return to the property a second time. I have sent a number of bills in the last year to the listing agent... Not only have I been paid (although not always) I have received a phone call and apology for the inconvencience. I can't spin my wheels for free, but don't feel it's fair to attach the buyer for something they had no control over.

Has it hurt me? Maybe, but at the same time I have received referrals from those who have paid said fees to me. I simply handled it in a professional manner.

I handle return visits in different ways, but try to be accomodating to my clients when I can.

I was charging $50 but it is taking too much time which I could be spending doing regular inspections and so many houses are without power lately, its getting annoying.

Originally Posted by Marc M

I'm getting so sick of these guys that you are speaking of (elite?). My wife, who is an agent, gets their spam emails all the time. "Flat fee" inspections and so forth. BTW....,

what is with all the wind this week?

UGH>>>>> I hate the wind, I had to strap my ladder twice last week to the house.

Forward the email to me.. maybe I'll hire 'em .

Originally Posted by Dan Harris

This has been addressed several times here. It "appears" it depends on the persons business decisions.

Ahhhh, yes. You are correct. It does "appear" it would be up to the individual.

I don't think it's unusual that you received a lot of phone calls. People are always looking for a bargain. A percantage of them aren't really concerned with what your inspection might find because they're only seeking to satisfy their lender's requirement for an inspection. Maybe they've already decided they want the house no matter what's wrong with it. Those people are "in the market" for the lowest price not for the highest quality. Regardless of where we like it, there is a market for both. The value of your product or service is difficult to demonstrate to anyone who hasn't already seen or sampled your work.

I'm considering charging a low-ball flat fee and then adding to it for each difficiency I find and report. I wonder what the reaction would be to that!

Originally Posted by Robert Slight

I don't think it's unusual that you received a lot of phone calls. People are always looking for a bargain. A percantage of them aren't really concerned with what your inspection might find because they're only seeking to satisfy their lender's requirement for an inspection. Maybe they've already decided they want the house no matter what's wrong with it. Those people are "in the market" for the lowest price not for the highest quality. Regardless of where we like it, there is a market for both. The value of your product or service is difficult to demonstrate to anyone who hasn't already seen or sampled your work.

I'm considering charging a low-ball flat fee and then adding to it for each difficiency I find and report. I wonder what the reaction would be to that!

Just add up a dollar figure for each item you find and at the end split the potential cost of repair with them.

Ooo, I thought he was kidding.

Originally Posted by Marc M

Just add up a dollar figure for each item you find and at the end split the potential cost of repair with them.

What better way to make it a "Win/Win" for both the Inspector and the Client. "FREE INSPECTION" then charge the client for each demonstatable difficiency found. The average Home Inspection price would increase to about $900. And....in the rare case where they didn't "need" an inspection, they would be paying for one. It would be FREE!

I'm liking this more and more.

Originally Posted by Marc M

Ooo, I thought he was kidding.

I was...."was". But now I might offer it as a price leader

Originally Posted by Robert Slight

What better way to make it a "Win/Win" for both the Inspector and the Client. "FREE INSPECTION" then charge the client for each demonstatable difficiency found. The average Home Inspection price would increase to about $900. And....in the rare case where they didn't "need" an inspection, they would be paying for one. It would be FREE!

I'm liking this more and more.

Outside the box thinking here...Great minds think alike.

Originally Posted by Robert Slight

I was...."was". But now I might offer it as a price leader

ya know...the buyer may actually dig this. I mean, the more you find, the better inspection they feel they received. Downside for the buyer is they will eventually have to pay the bill.
And if these REOs continue like they are, there is some serious job security for us. You should sell this idea to Nick at NACHI.

Originally Posted by Robert Humphries

Let's assume I'm a home buyer, and I hire an inspector who charges me by the deficiencies found. Here's what I'm thinking...

Cost of Home = I know what it is going to cost.
Cost of HO Ins = I know what it is going to cost.
Closing Cost = I know what it is going to cost.
Property Taxes = I know what it is going to cost.
HOA Fees = I know what it is going to cost.
Buyers Incentives = I know what I'm going to receive.
Buyer's Contingencies = I don't care what they cost the seller.

Home Inspection = I have no idea what it's going to cost.

Not sure I'd like that, personally.

Even the plumber, roofer, remodeler, landscaper, painter, and electrician can provide me with an estimate. With the "pay per deficiency" plan, I could be out $300 or $900. That doesn't exactly allow me to plan my already drained budget around much of anything.

Even charging an inspection fee structured on a commision-like percentage of the price of the home is more predictable.

BUT....

You could give your clients a choice between these two pricing plans:

1. Client pays a flat fee based on sq. ftg.
2. Client pays a lower fee then pays per deficiency

More likely than not, by simply offering these two plans succinctly, you can actually raise your flat fee rate. Think about it.

Once again...just my couple-o-coins.

-

I can see the wheels spinning. Kind of mirrors commercial, well sort of. I like doing commercial, very little labor on our part and they dont mind paying.
Hey Robert, what is your commercial net?

Originally Posted by Robert Slight

I don't think it's unusual that you received a lot of phone calls. People are always looking for a bargain. A percantage of them aren't really concerned with what your inspection might find because they're only seeking to satisfy their lender's requirement for an inspection. Maybe they've already decided they want the house no matter what's wrong with it. Those people are "in the market" for the lowest price not for the highest quality. Regardless of where we like it, there is a market for both. The value of your product or service is difficult to demonstrate to anyone who hasn't already seen or sampled your work.

I'm considering charging a low-ball flat fee and then adding to it for each difficiency I find and report. I wonder what the reaction would be to that!

If this is not a tongue and cheek statement, you might find that this will be against your states license law. What you are proposing I bet would be considered a contingency based fee, even with the base fee. The final fee is contingent on what you find. Contingency fees are not allowed under every home inspector license law that I'm aware of.

Originally Posted by Marc M

I can see the wheels spinning. Kind of mirrors commercial, well sort of. I like doing commercial, very little labor on our part and they dont mind paying.
Hey Robert, what is your commercial net?

I think you mean commercial "Net Pricing", right? It's $00.10 per sq ft with $275 minimum.

This is an interesting topic. There's always a lot of opinions when it comes to pricing strategy, posting prices on-line or not. I spent 16 years in New York working in advertising, Marketing and Public relations and I can say with certainty that when prospective customers go far enough to research their purchasing decision on-line, they expect to find more information than your phone number and, if they don't, they just keep looking. So, it's important to include information on-line but difficult to demontrate value in the same format. Sample reports are good, videos are good, all that stuff is good, but now we're all social media experts and web developers. It's a big change in the last 3 years.

The topic started out about about getting a call based on a $199 web pricing that did not pan out in a sale for the service.

In retail there is something called a loss leader. You may want to look at that marketing concept.

With a $199 marketed you received the call, now its what you do with that call may be at issue.

Pick anything, especialy a service, and evaluate how you react to the purchase process. Clients are just like you most of the time.

If there is anyone that subscribes to the idea that, even in the slightest way, "There is almost no salesmanship involved in the home inspection business." as stated by Lisa, you have real problems with your thought process.

Marketing is salesmanship, web design is salesmanship, how you meet and great people is salesmanship, the manor in which you answer your phone is salesmanship. Each and every time there is any type of contact with a potential client its salesmanship. Even how you complete a purchase at the convince store is salesmanship. The first thing in sales is you.

Getting the Home Inspection Industry to act in concert would be like herding cats.
I would not suggest remotely pattering anything after the Real Estate industry unless you want the baggage that comes with it.

A call for a price quote is the best sales opportunity to increase your business. Pricing is what you make of it.

It is sad that so many have to redirect their failures to close a sale as a factor of some organization. Its not the organization that makes the professional and it is not a collection of members that may have professionals that makes an organization professional. There is more to being a professional than just doing it full time.

And I have to agree that when a member of this site interjects the advertising/marketing of an organization or their marketing services as part of the discussion, is irritating.

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

As an industry, we all need to ban together and fight the Dan Harris/ASHI $99 inspectors. We all need to push prices up, not down.

Here is something we use to help do that. You can reword it for your own inspection business.

Buying a home? It is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the value of the home being inspected. The additional cost of hiring an InterNACHI-certified inspector is almost insignificant by comparison.

You have recently been crunching the numbers -- negotiating offers, adding up closing costs, shopping for mortgages -- and trying to get the best deals. Don't stop now. Don't let your real estate agent, a "patty-cake" inspector, or anyone else talk you into skimping on the home inspection. InterNACHI-certified inspectors perform the best inspections by far.

InterNACHI-certified inspectors earn their fees many times over. As the most qualified inspectors, they do more, they deserve more, and -- yes -- they generally charge a little more. Do yourself a favor and pay a little more for the quality inspection you deserve.

The veteran inspectors especially have to push up on their fee structures, not down.

Lisa
That sounds very good.
I'm sure many readers could benefit from it.
Thank you for offering it to us.

Originally Posted by Lisa Endza

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

As an industry, we all need to ban together and fight the Dan Harris/ASHI $99 inspectors. We all need to push prices up, not down.

Here is something we use to help do that. You can reword it for your own inspection business.



The veteran inspectors especially have to push up on their fee structures, not down.

"You have recently been crunching the numbers -- negotiating offers, adding up closing costs, shopping for mortgages -- and trying to get the best deals. Don't stop now. Don't let your real estate agent, a "patty-cake" inspector, or anyone else talk you into skimping on the home inspection. InterNACHI-certified inspectors perform the best inspections by far".

Agents are going to love that.

Originally Posted by Lisa Endza

LOL! .

As an industry, we all need to ban together and fight the Dan Harris/ASHI $99 inspectors. We all need to push prices up, not down.


.

NOBOBY except you said anything about a $99.00 inspection.
Instead of coming here and telling us what to do, maybe you should start, instead of continuing your BS bashing, and lying about other inspectors and associations.

On second thought Screw It. Congratulations... your succeding in turning this site into another trash site. I am sick of being bashed to the public by another member.
YOU WIN ! I just unscribed . I have no desire to have my name associated with your trash/ lies, and bashing other inspectors and home inspector associations on the search engines. I don't need post on this site to be sucessful, and I don't need to support/donate to this sites owner to read content on this site

Originally Posted by Dan Harris

NOBOBY except you said anything about a $99.00 inspection.
Instead of coming here and telling us what to do, maybe you should start, instead of continuing your BS bashing, and lying about other inspectors and associations.

On second thought Screw It. Congratulations... your succeding in turning this site into another trash site. I am sick of being bashed to the public by another member.
YOU WIN ! I just unscribed . I have no desire to have my name associated with your trash/ lies, and bashing other inspectors and home inspector associations on the search engines. I don't need post on this site to be sucessful, and I don't need to support/donate to this sites owner to read content on this site

Come on Dan. You personally told me that if anyone was kind enough to give you an inspection you would do it for 50.00. What you don't tell them is that the report is another 300.00

A little edit here and others should take note .....................

The smiley faces did not take so I will manually add one :-)

Ted writes about Dan Harris

Come on Dan. You personally told me that if anyone was kind enough to give you an inspection you would do it for 50.00.

Dan "ASHI" Harris does inspections for $50!!!!???? Let me guess, he gives a $75 OFF coupon with that. LOL!

Nick says that now that InterNACHI is so big, his life's work is to solve the inspection industry's #1 problem. That problem is fee structure. He is devoting almost all of his time to it. I thought he was losing his mind but Dan has helped me to understand why Nick is obsessed with figuring out how inspectors can raise their fees.

The problem (amongst many) with competing with the low-ballers is that regardless of what you charge and how much you dumb down your inspection and report, your liability is still the same. Somebody WILL bite at that $99 inspection and then you're stuck doing it. Buyers bring friends and relatives to their inspections. Some of these people are silently in the market for an inspector as they are also looking to buy in the near future. They watch you and see what you do and want to see if they want to use you. If you're doing a minimalist inspection and are only doing what you are required to do, they will pick up on that cross you off their list.

Originally Posted by Nick Ostrowski

The problem (amongst many) with competing with the low-ballers is that regardless of what you charge and how much you dumb down your inspection and report, your liability is still the same. Somebody WILL bite at that $99 inspection and then you're stuck doing it. Buyers bring friends and relatives to their inspections. Some of these people are silently in the market for an inspector as they are also looking to buy in the near future. They watch you and see what you do and want to see if they want to use you. If you're doing a minimalist inspection and are only doing what you are required to do, they will pick up on that cross you off their list.

What he is talking about Nick is what is and has always been bait and switch.

He or anyone can call it anything they want like "smart marketing" Changing for the better inspection tells them you are willing to take any tactic to make a buck.

That is is fact what the problem is today. Inspectors are being taught everyday about perception marketing. There is a class on the 11th and 12th that is a continuing ed course for 16 hours that is nothing but that. Perception marketing.

Advertise Home Inspections for 200.00 and when they actually make the call there will be a sell up tactic. Also there will be the teaching of everything is included for free even though folks have to sign on the dotted line and or sign releases for all liability.

Nothing is free and if you look at countless websites around here you will see this type of marketing on 4 out of 5 websites..Free, free, free and a 200% guarantee.

Here is one companies 200% guarantee. Notice the first line

• A signed and witnessed **** Home Inspection Group release and indemnity agreement must be received to initiate this process.
• Client must be personally present for at least the last hour of the inspection. This is specifically for us to print out the report and discuss our findings in its entirety, in person, with the client.
• The inspection fee paid to **** Home Inspection Group will be refunded, by check, to the party who originated payment to us.
• A re-inspection must be done by a TREC Licensed Inspector.
• A check will be generated by **** Home Inspection Group to the re-inspection company, in their company name, for their inspection fee up to 100% of our original inspection fee.
• Our 200% Guarantee will stay in place 10 days from the date of the home inspection.

Now lets see. It is for 10 days (some are for 90 days. Tell me when the folks find out they are not happy with the first inspector............. Well into already living in the home. Like that is going to do them any good to get their money back after signing a release in front of multiple witnesses and then another inspector inspecting the property ..... that they already closed the deal on and are living in.

This is about the grossest form of perception marketing or should I say deception marketing .........But is works.

Termite warranties are pretty much the same all around. After the "free warranty period the folks put out 120.00 for the rest of the year or the equivalent of 180.00 for the year for a warranty for twelve months IF they do not find any conducive conditions or carpenter ant or termites or signs of previous termites or carpenter ants. If found you must pay to remove all these conditions and then they try to sell the fact that the average termite treatment is 3000 dollars which is about 7 times what the real average is around her.

Perception marketing or is it deceptive marketing.

Anyway you want to call it I do not subscribe to such tactics.

Originally Posted by Robert Humphries

No, Ted. That's not what I'm talking about. It's what you are leading people to perceive I'm talking about.

Upselling someone isn't "baiting" them or "switching" anything on them. If the client buys a $99 inspection, then they pay $99 if you can't talk them into upgrading to an inspection service that offers additional features.

In your pursuit to troll every post of mine just to discredit me, you are misleading others. "Perception marketing" isn't evil. The perception is created by the mere fact that you have a lower-priced product and a higher-priced product. For you to suggest that perception marketing is deceptive is for you to suggest that people who perceive a $15,000 car has less features than a $75,000 car are just plain stupid. I perceive you'd be wrong....and so would they.

-

For some reason you believe I am attacking you on a personal level.

Here is an example of perceptive, deceptive marketing. I already gave examples above

Send out a bunch of fliers advertising 99.00 inspections

When the folks call for the 99.00 inspection you now must tell them "Oh, that 99.00 inspection. Those are just to inspect the roof and Outside structure. You did not lie. It is actually an inspection ... but, If you want a full inspection that will cost you 350.

Where I come from that is called deceptive bait and switch marketing. If they hold you to it then you do a 99.00 inspection. If you talk them up into a "full" inspection, you know, like the one they should and must get based on states SOPs then you baited them with the 99.00 and then switched them into what they should get anyway for a higher price.

Don't take things so personal Robert. I am not the one selling anything. I am just telling it like I see it.

Just kind of curious Robert. Why is it that your perception or opinion is the only one allowed. Someone differs with your analytical and intellectual thoughts, perception and opinion and you get all exited.

Again. I am not the one selling anything here and have nothing to gain but feeling good for telling folks like I see it.

Bait and switch is bait and switch just like a pig is still a pig when you put lipstick on it. To think otherwise is, how did you say that, "Just plain stupid"

By the way I had a period of time when I was younger where I sold cars. It is funny how everything that was taught about getting folks on the lot was always then and now considered bait and switch. Put the lowest option pick up in the paper for as cheap as you can sell it. Of course no one had any intention on selling it . They just baited them with the shiny new ford or what ever make new truck that was about stripped and then sat them in a truck that had something in it so they could get a bigger sale/commission. Hence "Bait and Switch"

Don't get so excited Robert.

Originally Posted by Nick Ostrowski

The problem (amongst many) with competing with the low-ballers is that regardless of what you charge and how much you dumb down your inspection and report, your liability is still the same. Somebody WILL bite at that $99 inspection and then you're stuck doing it. Buyers bring friends and relatives to their inspections. Some of these people are silently in the market for an inspector as they are also looking to buy in the near future. They watch you and see what you do and want to see if they want to use you. If you're doing a minimalist inspection and are only doing what you are required to do, they will pick up on that cross you off their list.

Roger that...

Originally Posted by Robert Humphries

...which is why you talk about upgrades in front of their friends and family. The fact that they bring friends and family along might even be a boon for you. If the first-time buyer can't afford to pay $349 but "Mom and Dad" are present, they might just pay it for him if you recap the benefits.

-

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.