Thread: Everybody Wants Discounts Now

I can't remember the last caller I spoke to who did not ask for a discount, or a discount on top of a discount. Also, I am very clear in my phone contacts to spell out what is included as part of the general inspection only. Still, I get "Oh, that price doesn't include a radon test or termite inspection?"

Looks like some inspectors must be slashing prices so steeply that median pricing seems like highway robbery.

Similar Threads:

Originally Posted by Nick Ostrowski

I can't remember the last caller I spoke to who did not ask for a discount, or a discount on top of a discount. Also, I am very clear in my phone contacts to spell out what is included as part of the general inspection only. Still, I get "Oh, that price doesn't include a radon test or termite inspection?"

Looks like some inspectors must be slashing prices so steeply that median pricing seems like highway robbery.

Hey Nick... Tell them you will do the inspection for $ X amount and for just a bit ore they can have a report.

Best

Ron

I know this may sound ridiculous but I could be doing at least a couple more inspections a week. I, against all, or should I say, what little common sense I have, lowered my prices slightly to the point of doing my part in the tight times we have now. I refuse to just drop the bottom out as some have and I can guarantee that I am losing at least a couple if not more inspections per week. I tell them of the wonders of the economy and the break I am giving them in regards to the tough economic times right now and they are still looking for more. Of course they always say some LAME excuse and they will call back but you folks know what the I will call you back codes really mean.

It is tempting in these slow times to low ball those folks and make several hundred a week more but I just cannot make myself do it. Prices are already to low around here and I don't want to be one responsible for the destruction and low end holding price of home inspections.

Originally Posted by Ted Menelly

I know this may sound ridiculous but I could be doing at least a couple more inspections a week. I, against all, or should I say, what little common sense I have, lowered my prices slightly to the point of doing my part in the tight times we have now. I refuse to just drop the bottom out as some have and I can guarantee that I am losing at least a couple if not more inspections per week. I tell them of the wonders of the economy and the break I am giving them in regards to the tough economic times right now and they are still looking for more. Of course they always say some LAME excuse and they will call back but you folks know what the I will call you back codes really mean.

It is tempting in these slow times to low ball those folks and make several hundred a week more but I just cannot make myself do it. Prices are already to low around here and I don't want to be one responsible for the destruction and low end holding price of home inspections.

Some of the calls you are getting are from other inspectors checking your prices out

Best

Ron

I lost one for today because another company was willing to inspect a 1700 sq. ft home and do a termite inspection for $325 total. Before this downturn, $325 would have been my price just for the inspection, not including WDI. And I had been talking with buyer for a week.

Not much you can if you're not willing to work for peanuts.

This is going to be something for each inspector to work his way in the market place...

One thing i have done is add more service.

Year before Last year i was only doing Termite inspection.

Then I add the Infrared Thermal Imaging. Big help...

This year I just open up the Home Inspection to my company... Big help..

I have only had one Guy under bid me on the Home inspection on a 5200 SQ foot home his bid was $450.00 my price was $ 750.00

I did get the Termite and the Infrared thermal for the $ 750.00 but not the home inspection for $ 750.00. I have not had to drop my prices and I'm not going to...

I don't think thats the way to overcome this issue.

My answer is to sell my inspection service and my YEARS OF inspecting over any other inspector out there. would you want a 2year inspector or some one with 30 years. Bring out all your best point and when you get the call tell your story... see your self.. I don't think price is that big of a deal if we are only talking about $ 25 or $ 50 bucks...

There is this paper back book. a old inspector gave me thins book 25 years back. How I Raised Myself From Failure To Success In Selling by Frank Bettger, This is the best little sales book every put together... and its all about you and how to be a better inspectors/sells-man.
A lot of inspectors are good at inspecting but they suck as sells-man.

Get that little book it will help... bank on it!!!

Best

Ron

I refuse to discount. It may cost me a job here or there, but honestly, it always has. I do get more "will you price match" calls now than before, but I can't tell that I'm losing more of them. When asked about lowering my price, I gently remind the caller that they are buying a personal service, not a commodity. I then give them an additional point to think about. I ask them whether they think they'd get a better inspection from an inspector who feels satisfied that he's getting paid a reasonable fee for his expertise and time, or from a guy who walks on to the job already feeling a bit cheated since he had to discount his price. If that doesn't work, I tell them that the cheaper guys are usually very new and could easily miss things. If that doesn't work, I can't salvage the job and don't try any more -- they are looking at cost and nothing else.

I don't discount my inspection fee, but if I get into a situation I will offer a discount on radon testing. Heck, I own my CRM's so offering a discount on radon testing is not that big a deal.

Goes something like this.... OK, I'll tell you want I can do. How about if I do a radon do a radon test for $50 instead of my normal $150. This is a $100 discount! So the inspection fee will be $325 and the radon is $50 for a total inspection fee of $375.

Not only did I not discount my inspection fee I just increased the sale by $50! I have done this a few times just in the past couple of weeks.

Oh, this only works if you have radon in your area and you own the testing equipment. If you have an IR camera you could do the something with the camera.

Instead of discounting think about increasing the sale.

Or you could say "Sure, I'll discount it $50.00. Done. Okay, now, what else do you not want inspected besides not inspecting the roof?"

Originally Posted by Scott Patterson

I don't discount my inspection fee, but if I get into a situation I will offer a discount on radon testing. Heck, I own my CRM's so offering a discount on radon testing is not that big a deal.

Goes something like this.... OK, I'll tell you want I can do. How about if I do a radon do a radon test for $50 instead of my normal $150. This is a $100 discount! So the inspection fee will be $325 and the radon is $50 for a total inspection fee of $375.

Not only did I not discount my inspection fee I just increased the sale by $50! I have done this a few times just in the past couple of weeks.

Oh, this only works if you have radon in your area and you own the testing equipment. If you have an IR camera you could do the something with the camera.

Instead of discounting think about increasing the sale.

Sooooooo Scott

What you are saying is that you do discount your inspections by 100 dollars. No matter how you look at it you are discounting your inspection. Doing the radon for 50 instead of 150 you are in all actuality discounting your inspection by 100.

I guess what I am saying is dicounting one is discounting the other. A discount is a discount. Thats like saying that you will give them a 100 coupon if they let you perform a home inspection. If you don't call it a discount to the home inspection then it is still a discount to the readon which means what??? You are discounting your inspection.

There are folks that throw in a slab measurement or I guess you could call it a foundation analysis, they also throw in free termite and infrared. Personally instead of giving everything else away and undercutting everyone else on total cost and having to do all that much more work, especially a radon test where you have to come back to pick up your goods, just do what Jerry said and knock off 50 bucks.

I do what Scott said. Yes, if you look at it one way, you have discounted the job $100. However, you can also look at it as increasing the bill by $50.

If you own your CRM, then your cost is really just the gas for the return trip, and a few minutes time.

Here is my take on that scenario. I sold the inspection at full price.
I also up-sold a radon test for $50. I ended up making $50 more than I quoted.

Originally Posted by Scott Patterson

I don't discount my inspection fee, but if I get into a situation I will offer a discount on radon testing. Heck, I own my CRM's so offering a discount on radon testing is not that big a deal.

Goes something like this.... OK, I'll tell you want I can do. How about if I do a radon do a radon test for $50 instead of my normal $150. This is a $100 discount! So the inspection fee will be $325 and the radon is $50 for a total inspection fee of $375.

Not only did I not discount my inspection fee I just increased the sale by $50! I have done this a few times just in the past couple of weeks.

Oh, this only works if you have radon in your area and you own the testing equipment. If you have an IR camera you could do the something with the camera.

Instead of discounting think about increasing the sale.

Scott. I have done the same thing. I like your idea. In a slow market at least you are coming home with close to 400.00, instead of losing the job. Besides your getting your normal inspection fee.

Originally Posted by David Banks

Scott. I have done the same thing. I like your idea. In a slow market at least you are coming home with close to 400.00, instead of losing the job. Besides your getting your normal inspection fee.

That is the point. When the market comes back around I will not be known as a discounter. I simply do not discount my basic home inspections. It is difficult to come back from discounting once you are known for doing it.

Yes, I will discount a radon test but as Jack said it only cost me a few minutes and a gallon or so of gas.

This thread reminds me of an old joke. " a guy goes up to an attractive woman at a party and asks her if she would sleep with him for $1,000,000. She thinks for a moment and says OK. The guy than asked if she will sleep with him for $100.She slapped him and said "do you think I am a whore" He responded "we have established that you are now we we are negotiating the price.

In the business client we are in every inspector should know what his/her break even is. Once that is know due a "mark up" for the profit you want to make.

Once you discount you are setting a pricing matrix that is hard to move from.

Stay firm in your pricing and don't be tempted to make "a fast buck".

What was just written about and other techniques are used all the times from other business. What makes us so special compared to so many other business?

I agree with you Scott. I compare it to a store where you buy a pair of shoes for full price and the get a second pair half the price. Is it a discount of the second pair, the first pair, or both pairs? who cares. All that store cares about is how much money they made at the end of the day/week/month/year.

I don't understand how it is hard to go back to charging regular rates if you've offered discounts for a while. Slow times end, regular rates resume. It's your business and your decision to make. When business resumes some sense of normalcy, my prices will go back up to where they were before and maybe higher.

Some people may not notice or care. For the ones that do grouse and say I gave their friend a lower rate, I'll tell them straight up that work was slow at that time and the discounts were offered to attract more business. They are welcome to look elsewhere and hire somebody else if they don't like what I tell them.

I'd rather book 10 inspections at $300 a piece than give out a bunch of quotes at $330-$350 and have an empty schedule. Everybody needs to do what they feel is best for their own business.

Nick is correct. Every one should manage their business in a way they are comfortable.In the Chicago area there are inspectors doing houses for $200. They give out hand written reports and carry no insurance. I wish them the best. I will not compete or match the low price. There is a market for every one.

Interesting Illinois had about 3000 licensed inspectors at renewal time November 30. As of Dec 10 about 600 inspectors had renewed.

Do you think $200 inspections had any effect on not staying in the business??

Hi Jory,

Where did you get the 600 figure? I've never been able to find the numbers on the IDFPR site.

Hi Eric,
The 3000 from ASHI ,for a mailing done in October.The 600 From the president of the Illinois Association of Home Inspectors. He thinks with the 30 day grace period the # will be around 800.

When once confronted with a caller who announced, "there's another inspector who will do it for half of what you’re asking." I replied, "Good for him, and when you want the other half of the home inspected hopefully he will return."
Click !
Bottom line; those low-ball inspections usually turned out to be the most problematic and I was glad to have the "Inspector Lights" in my area of practice have them.

Originally Posted by Eric Barker

Hi Jory,

Where did you get the 600 figure? I've never been able to find the numbers on the IDFPR site.

This is the latest from IL

Thanks Scott
Nice compilation of the Illinois home inspector data. Why do you track the information in Tn?

Originally Posted by Scott Patterson

This is the latest from IL

Scott, where did that information come from?

Just wondering.

Originally Posted by JORY LANNES

Thanks Scott
Nice compilation of the Illinois home inspector data. Why do you track the information in Tn?

I'm very involved in the profession in several states, but I really don't track it. I just get a copy every month.

Originally Posted by Kevin Luce

Scott, where did that information come from?

Just wondering.

It is sent to me from some folks associated with the state board.

A realtor, that I've done a lot of inspections fover the last 5 years, called to get a quote on a 1250 sq. ft. house. I gave her my price and she said *There is another inspector qouting 1/2 of my price. She asked me to lower my price....
I said "I have a lake house that I'm going to put on the market. The lake is 100 miles east of here. I want you to list it, show the property, fully advertise it, and I will pay you 2% instead of 6%."...silence
I think she got my drift.

Geeze, guys. Read the thing. It says at the bottom where it comes from!

Randy, did you get the job?

ERBY,
No, i didn't get that inspection, but she has removed his card from her prefered list of inspectors. i have done two since.

WILLINGHAM WOULD BE PROUD OF YOU RANDY!

Hi Scott

Would you be willing to email me the Illinois inspector information you receive each month. It would be very helpful for the Association work I do.
Thank you

Jory Lannes
jory@lannesgroup.com
847 733 7705

Hi Jory, Eric and Scott,

First off Jory I have seen those #'s from the Illinois Home Inspectors Association ( I hope you are a member ). If you look closely at the pass rate on the state test it got real high 2004-2006, there was a big stink that schools were teaching how to pass the test and not as much about home inspection.

For those who know me the first thing I say is " Raise your prices " . We have been getting a lot of low ball quote rs lately, hopefully they are gone or soon will be.

Eric you can track the #'s on the states web site. www.idpr.gov there is a link to license look up and number of license.They have not posted Decembers numbers yet, December was a grace period for license renewal.

Less inspectors = higher prices spread the word

Steve Reilly
Owl Inspection Services
Villa Park IL.

Sorry Eric & guys

I posted the wrong link to IL site

State of Illinois | Department of Financial and Professional Regulation works

Steve Reilly

I just saw they new #'s posted for licensed home inspectors in IL for December 2968. The number went up not down. I guess anyone getting layed off is now a home inspector.

Steve Reilly

Originally Posted by Steve Reilly

I just saw they new #'s posted for licensed home inspectors in IL for December 2968. The number went up not down. I guess anyone getting layed off is now a home inspector.

Steve Reilly

Look at this board we have had what 5 new guys. this past week.

I do see that the new guys posting have some strong back groung in construction...

Best

Ron

Originally Posted by JORY LANNES

Hi Scott

Would you be willing to email me the Illinois inspector information you receive each month. It would be very helpful for the Association work I do.
Thank you

Jory Lannes
jory@lannesgroup.com
847 733 7705

Sorry I can't do that.

OK Scott...Thanks anyway

Originally Posted by Steve Reilly

I just saw they new #'s posted for licensed home inspectors in IL for December 2968. The number went up not down. I guess anyone getting layed off is now a home inspector.

Steve Reilly

This is not surprising at all. Consider that in addition to:

> Home sales are flat...equals less inspections period.

> Construction is flat...less business moving those guys into others areas
like remodeling and inspection, perhaps both!

> A lot of laid-off people are looking for new opportunities. It's been
reported for example, that many former financial people are entering
nursing...looking to replace a high-paying job with a similar one.

> Home inspectors can come not only from the ranks of construction
but also the other allied trades, electrical, plumbing, etc.

> Others who might be interested as well in Home Inspection.

> Many of the (few) properties moving now are low-ball properties. These
do not command the services of highly experienced top-of-the-hill
inspectors.

> Others in other fields are having to cut back. The notion of once one
discounts, they will always have to doesn't necessarily apply in times
like these.

> Adding value-added service(s) where you can actually save the sale
and improve your bottom line is smart marketing, it is not surrendering
one's reputation on the altar of price cuts.

> There is a time for everything. That includes giving rather than
expecting. Might mean more "inspecting" if you know what I mean?

Our region is largely depressed. There is more to life than money. Try to keep things in proper perspective and adapt when necessary. Intelligent flexibility is the key.

I like many of things I have read (here) that enhance and promote value-added service. Some of the fear-techniques may not work in the times we are going through at present. "Few" will be exempt from the downturn.

Food for thought.

Best wishes for all.