Thread: You guys having this problem where you are?

I have noticed for the last year, I am loosing a ton of business due to the client needing an inspection within a day or two. Or, they book appointments and then go out shopping for a lower price and / or sooner date. Just really starting to get to me so I had to vent...

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Originally Posted by Marc Mazza

I have noticed for the last year, I am loosing a ton of business due to the client needing an inspection within a day or two. Or, they book appointments and then go out shopping for a lower price and / or sooner date. Just really starting to get to me so I had to vent...

If you are losing business because you cannot book the inspection in a day or 2 then you must already be booked out and you should feel privileged as work throughout the country is pretty slow.

As far as the other book and then switch...that does happen. all for 20 dollars or something foolish like make believe free goods and such. I have gotten referrals lately, strong referrals and even after they call me they go shopping afterword and then call back and say that the deal fell through or something lame. Of course I always do follow through like a thanks to the previous client of whom ever referred me to find out the real deal on the why's for the loss of the inspection....money. Then we have many that are throwing the termite inspection in for zero dollars. So much for covering their cost of business, insurance and liability etc.

In my market it's pretty normal to do next day inspections or even same day inspections. It's been that way since I started eight years ago. Since I stated my own company last November I haven't had anyone schedule, then cancel. I have had some price shoppers though and a number of calls from people looking to start their own inspection business.

I agree...I will also loose an inspection for $20 or so. I still find it amazing that I can have people call and the first question is how much, the second is how soon. NOT, are you qualified? We're having part time inspectors without E&O that are knocking out these jobs for $50 to $100 less than we can. 90% of our business is from RE agents.
Yes, we are blessed for our volume in this market. I never ever take it for granted.

The problem is people ask what they know.....cost and availability. Few if any know what a qualified inspector is and probably even fewer can make heads or tails out of a list a credentials on a website and whether or not it is important to them.

Yes on the price.... Folks are price shopping and even if they found you from a referral they will shop the price and many times go with the lower price.

Come to think of it, I did the same when I was refinancing my home. I went with the broker that had the lowest fees. The end result was the same as if I had gone with the highest priced broker, except I ended up with more money in my pocket.

I have trouble faulting someone for being frugal.

Originally Posted by Scott Patterson

Yes on the price.... Folks are price shopping and even if they found you from a referral they will shop the price and many times go with the lower price.

Come to think of it, I did the same when I was refinancing my home. I went with the broker that had the lowest fees. The end result was the same as if I had gone with the highest priced broker, except I ended up with more money in my pocket.

I have trouble faulting someone for being frugal.

Not faulting frugality, like you I do the exact same things. I'm just saying, the RE market has manifested its self in such a manner as to minimize the importance of time (5 day inspection period), and therefore allowing the buyer to make a sound decision I.E., hiring a more qualified inspector. Not just the cheapest. Cheapest here at least, is typically indicative of less qualified. I'm just saying...

If your missing out on inspections cause you can't get to them cause your busy, its time for you to consider putting another inspector on staff. He makes money and you make money off of him.

rick

I always get people who ask for price and availability and don't ask about the inspectors qualifications or background. It use to frustrate me to no-end.

But if you look at a caller, any caller as an opportunity .... you can win over a lot of those people. Not all, some just ask price, tell you they need to talk it over with their husband and hang up. You'll always loose those to low price...... who cares.

Most people don't know what an inspection is, what it costs, or what's important to them as Buyers. I NEVER give out the price until they first hear my "shpiel" about me, my services and what I have to offer as their inspector.

Selling yourself is important and unfortunately we only have that short time on the phone to do it. It is something to work on and takes time to master. If you believe in yourself, your qualifications, have the experience and the confidence, the caller will pick up on it, will believe you and will get educated in the process. It works ..... And after all, isn't it the type of client we really want?

Originally Posted by Rick Hurst

If your missing out on inspections cause you can't get to them cause your busy, its time for you to consider putting another inspector on staff. He makes money and you make money off of him.

rick

Man...I dont know. I've thought about that trust me...I just think of the liability involved.

Originally Posted by Ken Amelin

I always get people who ask for price and availability and don't ask about the inspectors qualifications or background. It use to frustrate me to no-end.

But if you look at a caller, any caller as an opportunity .... you can win over a lot of those people. Not all, some just ask price, tell you they need to talk it over with their husband and hang up. You'll always loose those to low price...... who cares.

Most people don't know what an inspection is, what it costs, or what's important to them as Buyers. I NEVER give out the price until they first hear my "shpiel" about me, my services and what I have to offer as their inspector.

Selling yourself is important and unfortunately we only have that short time on the phone to do it. It is something to work on and takes time to master. If you believe in yourself, your qualifications, have the experience and the confidence, the caller will pick up on it, will believe you and will get educated in the process. It works ..... And after all, isn't it the type of client we really want?

You're speaking my words brother...

I am having more RE agents say that they are dealing with a bank with a five-day inspection contingency. I always chuckle because I think the REO owner banks couldn't make a decision in 5 days if their life depended on it.

Both the REO owner banks and the buyer's lenders are really bullying buyers these day!

We have an inspector in our area that advertises he'll do your inspection within 24hrs. or he'll give you 25.00 off your inspection fee.

rick

Originally Posted by Rick Hurst

We have an inspector in our area that advertises he'll do your inspection within 24hrs. or he'll give you 25.00 off your inspection fee.

rick

Part time-er?

No, he does it full time.

Short time frames are the rule rather than exception these days... so is bargaining, coupons, matching prices and other marketing "junk".

I find myself driving to places on Friday afternoons that I never would have dreamed of 5 years ago. IMO, you gotta do what it takes to keep your schedule full.... or at least some food on the table. I thank anyone (at least in my area) with too much pride to do so.

If I have to lower my price $25 to match a price to fill a slot I wouldn't have otherwise filled, the $325 is ALL extra money in my pocket..... no matter how you slice it (yes, I know there's fuel to get there, liability, tools, equipment, etc, etc, but let's face it.... the bulk of the fee is profit).

It's ugly out there boys....

Wow...I remember when I first started, I handed out $25 coupons and did houses up to 1500 sq ft for $175 in the 90's

Originally Posted by Rick Hurst

We have an inspector in our area that advertises he'll do your inspection within 24hrs. or he'll give you 25.00 off your inspection fee.

rick

That is a good racket. Charge 25 more than normal and you cannot get to it for a couple days and then when you do it , it is the same price you would normally charge and the folks still do not get it in 24 hours. It is a no lose marketing ploy by the inspector.

I wish I could do all these "free give a ways and guarantees". I wish that I could advertise

200% satisfaction guarantee (give the fee back and pay equivalent to someone else to do an inspection. In these cases the home is long closed on and the folks have not seen the home since the inspection. A lot of good it does. Oh yeah, they sign all rights to liability away from their original home inspection)

Free termite inspection (They pay above average for the home inspection)

Free termite warranty for 90 days (which if they take signs liability rights away)

Free Maintenance book (they pay more for the home inspection)

Free few months of a lifetime termite and carpenter ant warranty (which of course they have to pay for)

Hype and fluff that folks buy into or get sold on daily.

It all works but I cannot bring myself to do it.

That takes me back to the initial issue. Even with the fluff, the folks are still opting for the lower price within the next 24 hours. Or, my fav is, "do you have time to do it today"?

Since a large part of my work has been foreclosures, I've had a lot of "need it now" requests. The lenders are only giving 5-10 calendar days to finalize the purchase. The buyer has to find and inspector and usually have the utilities turned on for the inspection. Then, there is the dewinterizing problem where the winterizing people have to come back because they cut out a section of water service line, padlocked a valve, or even removed part of the water meter to prevent water use. Also, throw in the RA who forgets what has to be done, is inexperienced and doesn't know or was hoping the buyer wouldn't ask for an inspection because the house was selling "as-is".

Real estate agents want to close deals fast, before buyers find out any thing about the house. They appear to be pressuring buyers to use drive-by inspectors, and to get the inspections done right away. Few buyers are actively resisting this pressure.

Good point Randy! I now realize why agents aren't actively resisting short contingency periods. Of course, it helps that they as well as us inspectors aren't running at full capacity and can usually respond with in a day or two. Yes, deals fester as time goes on. Ironically, I think this encourages full-time inspectors, not part-timers who may need to wait for the weekend or a day-off from their regular job.

I also always try to schedule an inspection quickly. It is all about service, plus I know if I schedule something a couple of days out, I may not be able to respond to the next 'got to have it now' inspection. My feeling is if I am not inspecting now, I am not making money or being able to pay bills that obviously don't wait.

Originally Posted by Marc Mazza

I have noticed for the last year, I am loosing a ton of business due to the client needing an inspection within a day or two. Or, they book appointments and then go out shopping for a lower price and / or sooner date. Just really starting to get to me so I had to vent...

The demands made by the lenders in our area are ridiculous. They take fours months to accept and offer but some are actually telling the buyer they must have inspection done with-in seven to five days. There will always be the shoppers (not caring what type of inspection is done) looking for ten dollars off, but if you tell them how they can benefit by using your company they will generally go with you. I don't mind as long as I personally generate at least one inspection per day.

Buyers are liars! The ones that call back after making an appointment with some lame excuse, the deal fell through, didn't get the loan, mother in law died etc. don't qualify for your services; believe me let them go there the ones who end up causing the problems. There are too many good folks out there that will appreciate your services.

Ted,

I have a brainstorm of an idea that no one else in our area is doing.

We'd could offer with a paid inspection 4hrs. of free child-care on a Friday or Saturday night for the client.

Bet that would get that would keep us booked. Be quiet about it though, we don't want everyone on HI news to know about it.

rick

These things come and go in cycles.

Originally Posted by Rick Hurst

Ted,

I have a brainstorm of an idea that no one else in our area is doing.

We'd could offer with a paid inspection 4hrs. of free child-care on a Friday or Saturday night for the client.

Bet that would get that would keep us booked. Be quiet about it though, we don't want everyone on HI news to know about it.

rick

Rick my friend, we're already doing that out here in Cali. Along with walking thier dog, baking them cookies, and...kissing their butts. You guys back east need to get with the program.

Sorry man, all we do is take their checks and provide them valuable information on the condition of the home they were considering buying.

rick

Originally Posted by Rick Hurst

Sorry man, all we do is take their checks and provide them valuable information on the condition of the home they were considering buying.

rick

I see you texans do it the hard way..

Cant knock TX...I actually lived there for a while. Pasadena, near Gillieys. It was in the 70's. Cool place & cool people.

Originally Posted by Marc Mazza

I see you texans do it the hard way..

Cant knock TX...I actually lived there for a while. Pasadena, near Gillieys. It was in the 70's. Cool place & cool people.

Hey Marc. Did you change your name? I don't remember Mazza.

Originally Posted by Gunnar Alquist

Hey Marc. Did you change your name? I don't remember Mazza.

"M" wasnt really my last name, I was undercover. I even changed my avitar and added the web url. Figured it was time to get with the program.

Originally Posted by Marc Mazza

"M" wasnt really my last name, I was undercover. I even changed my avitar and added the web url. Figured it was time to get with the program.

Well don't stop now! What part of California?

Originally Posted by Vern Heiler

Well don't stop now! What part of California?

Santa Clarita - near Magic Mountain

I had 2 callers so far this week that actually told me that my stupid reasonable fee was much to high and they were thinking more like xxx because that is what everyone he called so far were going to do it for.

I told and Indian Fellow that he should give me a call if he wants a real inspection. The phone was quiet and he was actually still there and then he said for the fifth time "So, you will not do it for less?" I told him to have a nice day. I actually would have done it for a little less because I could hit a golf ball to the home and it was small and a one year warranty. He said he had three letters that were mailed to him and all of them said they would do it for 200.00/ I said have a nice day and finally hung up. If he just did not tell me what I should charge

Ted, I am sure you know there are some ethnic folks that find negotiating the price is part of the game; as you did I tell them to take a hike if they don't like the price. I price my inspections according to the age and sq. footage of the property, thats it and with the price of gas we have had to increase our prices. There are some folks that don't qualify, don't worry about it.

Originally Posted by Ted Menelly

I had 2 callers so far this week that actually told me that my stupid reasonable fee was much to high and they were thinking more like xxx because that is what everyone he called so far were going to do it for.

I told and Indian Fellow that he should give me a call if he wants a real inspection. The phone was quiet and he was actually still there and then he said for the fifth time "So, you will not do it for less?" I told him to have a nice day. I actually would have done it for a little less because I could hit a golf ball to the home and it was small and a one year warranty. He said he had three letters that were mailed to him and all of them said they would do it for 200.00/ I said have a nice day and finally hung up. If he just did not tell me what I should charge

Ted, I dig your style. Dont give into the low ballers, it's not worth it.

Ted - The Washington DC and Northern VA area has a lot of people from every part of Asia. It is a cultural thing. They are raised to bargain for everything. So, I have decided that when I get a call from anyone with an accent from that part of the world, I'm automatically jacking up the quoted price $100-$150 to give me room to LET THEM bargain the price down.

Be sure to inform these buyers of the other part of your business..... the litigation support for people who went with the cheapest home inspector they could find and bought a house full of undiscovered problems

Originally Posted by Matt Fellman

Be sure to inform these buyers of the other part of your business..... the litigation support for people who went with the cheapest home inspector they could find and bought a house full of undiscovered problems

Matt well done... LAMO! I cant even tell you have many times i said that to my wife!
I also have to agree with stuart, you totally went there....just awesome.

I just got an e-mail back from somebody I spoke with for about 10-15 minutes earlier this week when he called for pricing info. Not that I feel that alone entitles me to his business but we had a nice conversation. In his e-mail, he said "As for the inspection, although you sounded very professional on the phone I found someone else who would do it cheaper."

Professional or cheaper? Hmmmmmmm......whadda ya think honey? Cheaper? OK, works for me.

It all comes down to a few bucks for some people. They don't care if you make a dime. They just want a deal.

Originally Posted by Nick Ostrowski

I just got an e-mail back from somebody I spoke with for about 10-15 minutes earlier this week when he called for pricing info. Not that I feel that alone entitles me to his business but we had a nice conversation. In his e-mail, he said "As for the inspection, although you sounded very professional on the phone I found someone else who would do it cheaper."

Professional or cheaper? Hmmmmmmm......whadda ya think honey? Cheaper? OK, works for me.

It all comes down to a few bucks for some people. They don't care if you make a dime. They just want a deal.

I know. There is no empathy.

This last year has been more of the "I got your number from my co-worker AND XXXXX , they both said you did a great job, so I'm calling YOU FIRST TO FIND OUT HOW MUCH.

You get a referral from 2 sources, they then tell you the gleeing referrals you received about your service on site and the report (sold, right?), you go over your service and price, talk a bit about availability, ask about their concerns with the home, etc.

"Thanks Tim, I can see why you were referred, I'll SHOP AROUND AND CALL IF YOU WERE THE CHEAPEST"

I've even tried to interject some bit of common sense into what was just said, but you're losing them by second... and there they go!


Ultimately, we *do* here back from SOME of them, problem is it's just SOME of them.

Marc, makes a good point, we used to do a good job, to ultimately receive the TRUST and ADMIRATION of our past clients to receive the Ultimate Compliment.. A Referral... not just an Agent, those are somewhat normal, but a referral from a past client that was happy to both SAVE and PASS along our name... only to be price shopped and dropped.

It's the times.

I wouldn't do it myself, but I can see how HI's are reverting to doing $200, any size home, shoot out a report with 5-10 pics on site, go on to the next one. Hope you hit enough of the big ticket items and MOVE ON BABY!!

Why I won't do it? I was looking at some pics of NEW CONSTRUCTION, been doing a bunch of HI's on new construction lately... I'm putting together a report... Hmmm "Flat shower pan, no slope, open electrical box in attic...

then

And I don't know how I didn't catch it on the DATA TAG, but the builder installed a 2006 R-22 system... on a home that is just receiving it's COO/Final. What??? An obsolete/phase out system on a new home? How/who/what. I've found 2 of the same this week... I suspect some were because builders are picking up un-finished stock from foreclosed builders, but... didn't there used to be a 180 or even 360 day rule w/extension on permits? What the Heck?

And I'm left explaining to a client that although there R22 system is functional but this/that/other concern may come to fruition etc.. AND TO BOOT, what about the fact that most warranties on the closed part of the system is 5 years on AC? And the unit is 5 years old when the home is being finished, is it under warranty?

Geesh.

Originally Posted by Rick Hurst

Ted,

I have a brainstorm of an idea that no one else in our area is doing.

We'd could offer with a paid inspection 4hrs. of free child-care on a Friday or Saturday night for the client.

Bet that would get that would keep us booked. Be quiet about it though, we don't want everyone on HI news to know about it.

rick

Some duct tape and a closet.

Tim, its just making it tough on us who make this our bread n butter. Yea, I like the ones who were a referral and still price shop you. I dont know how your pricing is structured, but if I get individuals pricing us in Palmdale, we're typically $150-200 more than their lowest quote. And thats just the 1500 Sq Ft or less houses. They just gasp, or laugh. Oh yea..,try not to get blown away out there, winds are really picking up!

To most potential clients, a home inspection is a commodity. There is little or no valuable differentiation among providers. Therefore, like a commodity, pricing is the single variable parameter for a decision. It is most likely that each inspector has a phone pitch that says he/she is the best and most qualified. Therefore, we as providers have two choices:
1. Compete on price and have a full schedule. This does not necessarily indicate the level of quality of the commodity service.
2. Maintain higher prices and risk the schedule. This does not necessarily indicate the level of quality of the commodity service.

Our service is worth only what the market will bear, no matter how we feel about it. If we want to have the market pay higher prices, we must collectively change the perception of the general public about our services. If I knew how to do that, I guess I would be wealthy. Until it is done, we are at the mercy of the current market perception.

For what its worth, my prices are moderately high and I give the best service I can. I accept without surprise or dismay that there are holes in the schedule.

Darrel Hood
DILIGENT PROPERTY SERVICES

When you buy a Snickers candy bar, it doesn't matter which store you go to or how much you pay for it, you still get a Snickers candy bar.

A home inspection is NOT a candy bar.

And the cheap inspectors DON'T have full schedules. Call some of them and ask.

Erby,
Our problem is that the market perceives that a home inspection is like a candy bar, in that it is a commodity. I agree with you that the perception is not accurate. However, the perception is what shapes the market. Therefore, price/availability becomes the decision parameter.

Perhaps the low pricing/immediate availability is not resulting in full schedules. However, the premise of this thread is that folks are choosing inspectors based on reduced pricing or immediate availability.

Darrel Hood
DILIGENT PROPERTY SERVICES

Originally Posted by Darrel Hood

Erby,
Our problem is that the market perceives that a home inspection is like a candy bar, in that it is a commodity. I agree with you that the perception is not accurate. However, the perception is what shapes the market. Therefore, price/availability becomes the decision parameter.

Perhaps the low pricing/immediate availability is not resulting in full schedules. However, the premise of this thread is that folks are choosing inspectors based on reduced pricing or immediate availability.

Darrel Hood
DILIGENT PROPERTY SERVICES

I have been some what busy lately but I tell yeah.

I feel more like a milky way than a snickers. In my immediate area we are candy bars for the large majority of callers. They have absolutely no understanding about a man taking an inspection for much much less is affected by his actions. He knows everyone gets pissed at him and he simply does not care. He gets a couple more inspections a week and makes less and less every year. He feels great that he was busier but at the same time wishes he made more per inspection so he did not have to work as long and hard to make a living. You cannot tell me that this is not negatively influencing his inspection. I see this the same way for those that get almost all their inspection directly thru Realtors. You cannot tell me that the inspection and process and reporting is having absolutely no influence on the inspection and process and reporting when all your work comes from folks that you must keep happy to keep working.

This is beginning to remind me of the trades. I help out a friend from time to time doing construction work. It is light construction and a lot of repairs. Believe it or not folks are still making, some, 15 dollars an hours. At 40 years ago when I was a teen I was making 15 dollars an hour.

Some may think they are not influenced by Realtors when all their inspections come thru them but they are. Sorry folks but they are. One of my best friends was a Realtor for years and tells it exactly like it is for the reasons the inspectors, for the very most part, are picked by Realtors. It is the rosy, nice, smiling, everything is to be expected, this is typical for a home this age. That is grandfathered. You will find this all over this area, that is just natural settling and all those doors. drywall cracks and brick cracks need a little fluff and adjusting and maybe a little paint.

Ted,
I didn't see much in your post to discuss. I certainly agree that inspection is becoming more and more like a trade.

Darrel Hood
DILIGENT PROPERTY SERVICES

There will always be price shoppers, it doesn't matter which business you are in.

When selling an intangible, such as an inspection, you need to quickly establish rapport and create a feeling of positive gain within your client. Once you have established that, pricing becomes secondary.

People will pay more for quality. Just make sure to provide it.

Part of the rush sometimes IS the 10-day schedule imposed by banks on foreclosed properties.

As to price shopping, it never stops. In my area I don't believe that a web site will necessarily drive any business to me, however I do feel it is very useful as a marketing tool for price shopping clients. Beside the normal home inspector info that most use on a web site, I also post a couple of sample inspection reports, and now also use results from Systino (Systino Customer Loyalty, Referral, and Retention Software) customer feedback surveys to illustrate why I am worth hiring me at a slightly higher fee than the other inspectors down the street. I simply point the prospective client to the web site to show them what they get for their money.

Otherwise, face it, the Wal-Mart mentality has taken over, where price is more important than quality of product. I don't know how to fight that.

Originally Posted by Erby Crofutt

When you buy a Snickers candy bar, it doesn't matter which store you go to or how much you pay for it, you still get a Snickers candy bar.

A home inspection is NOT a candy bar.

And the cheap inspectors DON'T have full schedules. Call some of them and ask.

Well said.

I've been in this business for 15 years and every report I have generated was delivered the next day, even when I had more than two inspections for the day. What's the problem?

Originally Posted by Terry Griffin

I've been in this business for 15 years and every report I have generated was delivered the next day, even when I had more than two inspections for the day. What's the problem?

Huh...? You either type really fast, have an awsome version of dragon speak, millions of comments, or you have a checklist report.
So..., if you do two(2) 1920's, 5,000 sq ft houses w/ raised faoundations, that were total, total x10 crap, you could have both done in one night?
How would you charge me do my reports?
BTW, when i first started over 14 years ago, I was doing 3 a day and getting the reports out that night. Looking back, I see how totally stupid that was.

Originally Posted by Terry Beck

Otherwise, face it, the Wal-Mart mentality has taken over, where price is more important than quality of product. I don't know how to fight that.

You can't fight it. It's a battle that cannot be won. Without a direct referral or recommendation from a past client (and that sometimes is not enough), price is going to be the tipping point for most buyers. There are some out there who will do their homework and really put thought into the process before they choose an inspector. But they are the exception.

I think about it and wonder if there are some buyers who don't want to hire an inspector who is said to be really good and thorough or their friends say "you have to get this guy". Maybe some people are afraid to hear the worst and are content to go with an inspector they hope is going to keep them feeling good about a house. Maybe some people don't want to possibly hear that their dream boat is actually a ship wreck.