Thread: March In Like a Lamb

February was suprisngly a decent month up here. I hope others experienced the same. But turn the calendar to March and it's like somebody flipped a switch and the phone got very quiet again.

Whoever flipped the switch, kindly flip it back.

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Originally Posted by Nick Ostrowski

February was suprisngly a decent month up here. I hope others experienced the same. But turn the calendar to March and it's like somebody flipped a switch and the phone got very quiet again.

Whoever flipped the switch, kindly flip it back.

Exact same here, Nick.... I hesitate to say February was 'good' but compared to the four previous months it was. March? As you say, somebody flipped a switch.

The biggest factor I can see (aside from the completley messed up economy, obviosly) is the day to day stock market. When things go down really bad for a few days or a week we dry up. People get scared. Once things rebound a bit we get a few calls.

Nick,

I'll have to agree with you. Last month was the best Feb. I've ever had. Most Febuary's are typically slow, but last month I wound up doing 45 inspections which I though was an exceptional.

March hits though, and only (2) calls booked for this week.

As Matt mentioned, I think people hear the doom and gloom our news media seems to hark upon. People don't know which way to go.

As soon as the spring hits though, I'm hopeful that we all are swamped.

rick

Originally Posted by Rick Hurst

Nick,

I'll have to agree with you. Last month was the best Feb. I've ever had. Most Febuary's are typically slow, but last month I wound up doing 45 inspections which I though was an exceptional.

March hits though, and only (2) calls booked for this week.

As Matt mentioned, I think people hear the doom and gloom our news media seems to hark upon. People don't know which way to go.

As soon as the spring hits though, I'm hopeful that we all are swamped.

rick

Hmmm. All I have to say about that is F**********************Over 11 a week. You need an ugly step father, well, I think I have a year or 2 on you.

I maybe did a dozen in Feb, not even that. But things are looking up because they just cannot look down anymore.

Go Texas

January and February were exceptional months for me but many in our NAHIMinnesota Chapter are just gettin' by. I started marketing myself real hard about this time last year and about June it all came together. Business this year compared to last is up about 40%. March has been just as hot as February so far and I hope it keeps up. I really never thought I'd be doing almost 40 inspections per month in Jan and Feb. Where is the credit crunch the Govt's talking about?

Originally Posted by Dave Taurinskas

Where is the credit crunch the Govt's talking about?

It's out there Dave and it's real. You are one of the fortunate ones right now. But I'm sure the hard work you put in on the marketing end has something to do with that. Good for you.

Yeah, my Google ranking has made all the difference in the world. If I had not put all the effort into getting my site to the top of Google then all this would not be happening I'm sure. My advice is get that internet working for you. The top of Google is where you want to be. The current home buyers are Internet savvy and use it to find everything. I optimized my site last January and my Internet leads went up about 400%.

Originally Posted by Dave Taurinskas

Yeah, my Google ranking has made all the difference in the world. If I had not put all the effort into getting my site to the top of Google then all this would not be happening I'm sure. My advice is get that internet working for you. The top of Google is where you want to be. The current home buyers are Internet savvy and use it to find everything. I optimized my site last January and my Internet leads went up about 400%.

Thats funny. My internet clients have all but disapeared as of the beginning of the year. 80% of my work used to come from the internet. I still have the same standings if not better and no one is calling from the internet. All mine have come as of late from realtors that I have been politely hounding for the past couple of months.

You just have a decent market in your area and the clients have not turned to the realtors for their trust. Around me it seems that clients because of all this financing crap have put the whole deal in there hands.

I hopr thngs continue to go well for you but I also hope you did not or do not get the turn around in the direction of referrals to you. Keep you fingers crossed. You and Rick have been among the lucky ones to still have that strong market.

It would be interesting to see what the unemployment rates are in the better performing markets as opposed to the rest of the country. I'm sure job security is figuring into whether or not to move for many potential buyers.

My base of Realtors is growing too because most of them are finding me on the Internet as well. I still get about 4 out of 10 referrals from Realtors and the others off the Internet but that number is changing because of the growing number of Realtors I'm getting that use me all the time now. I still think it is because I marketed myself as a foreclosure inspection specialist and offer more personal service than others do. I don't know if I am actually giving more service than others but I think I am convincing the Realtors and clients that I am. I try to offer more and set up my website to offer more information than a lot of other inspectors do but maybe they offer the same service but don't tell their clients. I don't know.

As far as unemployment goes in Minnesota, it's terrible here 7.6% in January. December '08 to January '09 was the largest jump in our states history and it's much worse now.

Falling prices of foreclosures homes have opened up the market a bit here but capturing those buyers is the trick.

It's a constant question in my mind where to sink my advertsing dollars/time. The yelllow pages are basically a dying thing but still good for a lot of leads. A LOT of people are going to the internet but there are still plenty picking up the big yellow book or taking advice from their agent.

For now I think it's best to do a bit of everything but that can change quickly.

The Yellow Pages are a dinsosaur around here. I sprung for a larger Yellow Page ad last year and got one (1) paying job from the ad. The return was not there. Internet seems to be the way people look in this area when they want to find somebody on their own.

Yellow Pages is old school. Don't waste your money.

The same is true here in Minnesota. We did a survey here of 74 inspectors and in 2008 only 121 actual inspections were produced in a year by the Yellow pages. Also the dollar for dollar payback here in Minnesota is the greatest on dollars spent on Internet and Websites. An small ad in the yellow pages here runs about $90 per month = $1080/yr. The inspectors that spent an average of $100 per month (there were 18) on a website promotion company (SEO company) to get ranked well in Google, averaged 15 inspections each per month or 180 each for the year. Let's see now...180 x $300/inspection = $54,000. Pretty good return on investment. My inspection software helps me keep track of where my inspections come from and the Internet is where it's happening here. I am a marketing major and everything I do business wise has to have a financial upside. If any of you are in need of a SEO company let me know and i will turn you on to the one I use. Mine has worked great for me.

There are two basic metro areas where I concentrate my marketing. In Portland, the yellow pages pretty much a waste. The other place is a much smaller, more blue collar area and I actually get a lot of calls from the yellow pages. So, it can definitely vary by area and type of people.

Exact same here, Nick.... I hesitate to say February was 'good' but compared to the four previous months it was. March? As you say, somebody flipped a switch.

Matt,

I don't know if they flipped the switch. Last week I had zero inspections, this week 6. The last time you were on here saying you had a good week, I was well below you. It's been busy every other week for me for quite a long time. If I could figure out which week's I would be be busy, I would get an every other week job for a while........

I keep considering saying "screw it", and getting a real job........ then I pick up some more work.

There are two basic metro areas where I concentrate my marketing. In Portland, the yellow pages pretty much a waste. The other place is a much smaller, more blue collar area and I actually get a lot of calls from the yellow pages. So, it can definitely vary by area and type of people.

Where's the other place....

I've been marketing in Salem and it seems to pay off more than Portland. It's still pretty slow but Salem is more consistent than Portland. I get the feeling Portland has about 20 inspectors for each job that needs to be done. With diesel at $2 versus $5 it sure makes the trip down there more tolerable.

My Portland agents just tell me over and over how many guys show up at their open houses and how many fliers/emails they get everyday. There was really a HUGE increase in the number of OCHIs during the 'boom' and they're all starving. Come to think of it a guy in Salem was just telling me the same story... so, maybe it's just as bad there.

The phones have been really slow this week but I just had a run of calls this afternoon and booked a few. The inconsistency is what is really annoying.

Matt,

When I started out, I had phone book listings in Salem and Portland. I got one job from the Salem one, and zero from Portland. Of course, I had a smaller sized ad which may be part of it.

I have noticed an increase in the number of jobs that I am getting in Salem for some reason. I don't market at all down there right now. It must be a fluke.

I pretty much knew that you were talkin' about Salem, I was just wondering if you would tell me . I appreciate it, but I won't be competing with you on the phone book ads........

Originally Posted by Brandon Whitmore

Matt,

When I started out, I had phone book listings in Salem and Portland. I got one job from the Salem one, and zero from Portland. Of course, I had a smaller sized ad which may be part of it.

I have noticed an increase in the number of jobs that I am getting in Salem for some reason. I don't market at all down there right now. It must be a fluke.

I pretty much knew that you were talkin' about Salem, I was just wondering if you would tell me . I appreciate it, but I won't be competing with you on the phone book ads........

It's funny don't even have an ad in the Salem book... it's just a listing, I don't think it's even bold. I've also seen a spike for some reason over the last month or so. Maybe everyone down there went under? I live pretty close to the I-5/205 junction so Salem is an easier drive most days than Hillsboro or a lot of Portland, especially during traffic times. I imagine for you in Newberg it's even more so.

Before the market turned, I had hopes of specializing in the Newberg area--- that's no longer an option. Salem/ Portland is about the same for me. I prefer the W. half of Salem over most of Portland---- it's a nice country drive.

We are so busy that we are turning our phones off so that we can work. Booked out 10days and have done about 90 inspections so far this year. The unemployment rate here is not too bad, I believe the last I saw was around 5% so that is likely the key. We are doing alot more smaller and older homes for first time buyers which is not great. But I am happy to have it. Sept thru Dec sucked. I have actually raised prices trying to cull out the inspections I do and don't want. Hope it holds up.

Originally Posted by Frank Bombardiere

We are so busy that we are turning our phones off so that we can work. Booked out 10days and have done about 90 inspections so far this year. The unemployment rate here is not too bad, I believe the last I saw was around 5% so that is likely the key. We are doing alot more smaller and older homes for first time buyers which is not great. But I am happy to have it. Sept thru Dec sucked. I have actually raised prices trying to cull out the inspections I do and don't want. Hope it holds up.

It's nice to hear some good news.... I'm glad you're busy. I actually had a busy day on the phones and inspecting today.... I almost forgot how to multi-task.

Your comments remind me how much less 'urgent' a ringing phone is when I'm booked out for the week. The last few months I've been leaping over furniture and knocking down old ladies to get to my cell phone if need be.

I'm sure getting a lot of condo and townhouse calls. This 8K credit for first time buyers is a pretty attractive offer. I did a condo last week that was 92K selling price. It was actually a pretty nice place in a decent neighborhood. The buyer was putting a pretty good chunk down with 8K coming back.... that's like a car payment for a mortgage!!

I was formulating a plan with an agent where we go round up transients and get them into houses and split the 8K rebate. But, then I realized those days of lending are over.... doh!

I really don't think the unemployment has much to do with it because I have heard from many around the country and the ones that have spent or are spending a lot of time marketing themselves are doing quite well. Many telling me that already for this time of year they are booked to the max doing two or three inspections per day and they are working full weekends. I am on the internet everyday, getting my company name out there if possible. Posting it where I can to get my Goggle higher. The more your website address shows up, the higher your ranking. Because of my ranking and internet exposure, just yesterday, I booked five jobs from people that found me on the internet. That's just yesterday! I am not doing anything special. Just marketing my company...getting my name out there. I also asked a couple of Realtors that like my inspections, to send out an inter-office flyer about my company. The response was great. Craigs list...another suggestion! Advertizing here is free. I get 4-6 per month off of Craigs List. Just a few suggestions. Virtually all of the many that contact me from around the country are getting the majority of their business off the internet. Contact me if you have questions. I'll help if I can. Good luck!

Originally Posted by Frank Bombardiere

We are so busy that we are turning our phones off so that we can work. Booked out 10days and have done about 90 inspections so far this year. The unemployment rate here is not too bad, I believe the last I saw was around 5% so that is likely the key. We are doing alot more smaller and older homes for first time buyers which is not great. But I am happy to have it. Sept thru Dec sucked. I have actually raised prices trying to cull out the inspections I do and don't want. Hope it holds up.

Please Frank

Turning your phones off so you can work. Good for you but whats the punch line???????????????

Dave

I use to get 80% of my work from the internet. It has done a 180 and I might be getting 20% from the internet.

The realistic part Dave is you hear from a few people around the county that are doing well and you are thinking work around the country iss gangbusting busy all around the US with a little effort. The fact of the matter is that most inspectors around the country the business is way off. The fact of the matter is they did lousy for the end of last year and then got busy at the beginning of this year or did great at the end of last year and are doing lousy now.

I for one I did more business in the first 10 days of this month than I did in all of February. I hope it keeps up. It is nice to be positive and rosey but the absolute fact of the matter many areas of the country have a pretty bad market and might just be waking up now for the beginning of spring. Another fact of the matter is the world is in a serious slump financially and the US is spending itself to a slow death unless some wake up to the reality of whats really going on.

Yes business is rosey at the moment but I do not have any blinders on to think I or any one of you is going to come thru this unscathed.
I am usually busier than most area inspectors. The turn of the year I might as well have gone on vacationion for a couple of months. As far as the internet, yes, Most of my work was coming from there now it has turned around and I am getting few calls. Most inspectors are scratching their heads trying to spread tyheir resourses out in many direcdtions because the usual just is not working for them aright now.

My website has 1st page Google rankings but I'm not knockin' em dead. Some areas of the country just are not as heavily affected by the economy and unemployment rates right now. Glad to hear you're doing well Dave but it is not all peaches and cream outside of Minnesota.

On the subject of booking inspections, I will say that anybody who thinks HI fees should be raised because there are fewer inspections to go around in times like this may be shooting themself in the foot. It's up to each of us to run our business as we see fit. But if you think you should raise your fees in a down market/down economy to make up for the shortfall in volume, you might be losing out on jobs you could otherwise schedule. Think about the way other businesses work that have goods that aren't selling, whether it be cars, clothes, electronics. If they have an overstock or want to generate more business, they are not going to accomplish it by raising prices. When have any of you bought an item or service you wanted after seeing the price go up? For most of us, probably never. Like I said earlier, run your business as you see fit but if you operate under the "raise prices because it's slow" mentality, you might be losing business.

I for one don't like giving discounts but they work.

Like I said earlier, run your business as you see fit but if you operate under the "raise prices because it's slow" mentality, you might be losing business.

I for one don't like giving discounts but they work.

v

I for one, disagree, but that's my own opinion. Say everyone raised/ lowered prices at the exact same time depending on how things are going--- you basically have the exact same piece of the pie, and you are making far less money in the slower times. Based on the cost of doing business idea, shouldn't you lower prices when there is more work out there, since the cost of doing business is in fact less (of course, nobody does that I wouldn't think)? With the slow economy, there are less inspections. That means that the cost of doing business has in fact gone up. Not raising prices or offering discounds is a short term solution that has consequences for at least some other inspectors. Short term only, you are taking more of the overall pie (if not, why offer discounts), and that pie is shrinking. If you have the financial means to back it up by lowering prices and offering discounts, you can push your competitors to failure.......... It just depends on what you are shooting for.

I don't expect everybody to agree with me Brandon and that's OK. Everybody has to run their business as they see fit.

But, I don't see how raising prices in slow times and economic downturns will get anybody more business, now or long term. Sure the price of business may have gone up with fewer jobs to go around but how would losing the jobs that are available help if prices are too high? I personally feel I am helping myself both short and long term. Short term, I am booking jobs now and paying my bills. Long term, that fact that I am booking jobs and getting my face out there is resulting in new contacts which will gain me future referrals and work. When things turn around for all of us, I can readjust my prices to the levels where they were before the slowdown or higher if I want.

My ratio of inspections booked vs. inquiries and contacts this year is higher than any other year I've been in business. Not only is it because of some small discounts I can live with but it is also because I spend time with callers talking to them and asking them questions. I can't tell you how many people I talk to that told me they would hire me because I simply took the time to give them more information than just a price quote. I've always done this though so that's nothing different.

The days of inspections falling into our laps are over for now for many of us. I want to still be in business when things turn around and I feel the way I am doing things now will set me up for the long term.

Originally Posted by Brandon Whitmore

v
If you have the financial means to back it up by lowering prices and offering discounts, you can push your competitors to failure.......... It just depends on what you are shooting for.

I don't have the financial means, that's why I offer some discounts. And I don't want to see anybody fail or be the one that pushes them to failure. However, it is up to each individual to succeed or fail on his own. It's a matter of adapting to the current climate or getting left behind.

I agree, Nick. Your cost of doing business never goes up when you are slow. It actually goes down. Anyway, the Realtors and appraisers in Minnesota have taken a cut and many inspectors have too, including me. When things get rockin', prices will rise. The rules of supply and demand are in play now. Very little demand right now, so you have to entice demand by lowering price. It's business 101.

Say I'm sitting with an empty day for tomorrow.... a call comes in. It's a buyer shopping prices but has to have the inspection tomorrow. If I do that inspection for $100 it's all profit. We have virtually no cost to do an inspection. Sure, there's vehicle, gas and wear/tear on equipment but that's pretty minimal.

Of course, nobody's doing inspections for $100 but I'm trying to make the point that when the alternative is zero, anything looks good.

This all comes down to a peron's individual financial position and how much they're willing to or need to work for. It's supply and demand at it's most raw basic form.

Anyone not willing to work for a given amount... great, spend the day fishing and let someone who is more hungry take it.

I agree with all the points on the thread... in the end we are all free to run our business the way we see fit.

Matt,

If your willing to do HI's for a 100. bucks, pack up your belongings and move to Dallas. I'll put you to work and I'll sit home on my ass and do nothing but write you out a check and we'll both still make money.

My point is that you said you could do it for a 100. and still make a profit. I think if you really did a cost analysis you find out differently.

Spend a few hours on the inspection, cost of wear and tear on your vehicle, add in all of the other fees that come along with running a business, spending another couple hrs. writing the report. Figure all that in and your lucky if you've earned minimum wage.

Dont' whore yourself out for a 100. bucks, seriously. That kind of thinking is what kills trades as ours in difficult times.

rick

I think everyone has to judge for themselves what the "market will bare" and price themselves accordingly. Here there are independent appraisers working for Wells Fargo that are doing appraisals for $75. I mean who would have thought that was possible 3 years ago. Things are different right now and it seems the you have to market differently, possibly do more for less $, until the drought is over. I know most everyone here in the real estate business is aware of that because I hear the talk in my networks I meet with. Realtors are taking less commission too. There is one company here that used to be the top realty company in the state but they refused to lower commissions and now they are suffering. Most of the home inspectors I know here have tried to be as competitive as possible. If price adjusting $25 or so makes the sale...well then. It beats $0

Dave

Originally Posted by Rick Hurst

Matt,

My point is that you said you could do it for a 100. and still make a profit. I think if you really did a cost analysis you find out differently.

Spend a few hours on the inspection, cost of wear and tear on your vehicle, add in all of the other fees that come along with running a business, spending another couple hrs. writing the report. Figure all that in and your lucky if you've earned minimum wage.

rick

What Rick said. Operating expenses and taxes eat up a lot of our fees. I think my take home pay from my inspection fees comes to roughly 60% of the fee. Then you have the buyers who grouse about fees and think we're making money hand over fist. They don't have a clue what it's really like.

The $100 number was just thrown out there to make a point... I'm not saying I'd ever do them for that or anything close.

My point was we don't have a product cost other than some operating expenses, a lot of which you're paying whether you're working or not (insurance, truck payment)

Realistically, if I discount my fee to $300 to get a job that I would normally get $350 for in order to fill a spot that would otherwise sit empty you can't tell me I'm losing money.

Matt,

I agree! Unless you are lucky you can't run a business in this economic environment the same way you did 3-5 years ago.

To finish my thought....

It's supply and demand like anything else. When there are more inspections available than needed the price or other factors will come down to meet what people are willing accept.

More than price, an annoyance of mine is scheduling. Back during the 'boom' I could pretty much tell people when I could be there and they'd take it. Now, it's the other way around. 'Can you be there are 3 on Friday?' - Three years ago I never would have dreamed of doing it. Today? Yep!

Just like price, I'm sure some of you would say no way..... that's great. I envy you for being a position to pick and choose your work.

I don't have a choice, I have to put food on the table.

In the end, there's no right or wrong answer to any of this stuff. One of the great things about this career, even during a pretty poor time, is that we can all do what we like.

Matt,

It sure beats asking "Would you like to have that super-sized?" doesn't it?

rick

Originally Posted by Rick Hurst

Matt,

It sure beats asking "Would you like to have that super-sized?" doesn't it?

rick

I actually worked fast food management for about 3 months when I was much younger. I have to say that is the cloest thing to hell on earth there is. Just when you're done getting your butt kicked all over the kitchen because some little punk quit on you, your district manager shows up and starts dragging you around the parking lot pointing out cigarette butts.

The phone is growing cobwebs again. There hasn't been a lot of posting activity on this board either. Looks like another lull for many of us.

Its spring break here, so everything gets put on hold seems like. Every realtor I know has headed out of town with their families for a getaway.

I've only had one a day all this week, but they've been good size homes so I'm not complaining.

Talk about luck, today I was inspecting a home and checking the plumbing all out and all of a sudden the water supply goes to zero. First thought was the city must have came by and shut the water offf. I keep looking around a bit and I look out a window and see a geyser shooting up in the front yard about 20-30 ft. Seems the water supply line to the place decided to burst at the moment I was there. Glad it happened then and not after the closing on the home. Buyers get a bit upset when a backhoe starts digging up the front yard on move in day.

rick

Originally Posted by Dave Taurinskas

Yeah, my Google ranking has made all the difference in the world. If I had not put all the effort into getting my site to the top of Google then all this would not be happening I'm sure. My advice is get that internet working for you. The top of Google is where you want to be. The current home buyers are Internet savvy and use it to find everything. I optimized my site last January and my Internet leads went up about 400%.

Originally Posted by Dave Taurinskas

My base of Realtors is growing too because most of them are finding me on the Internet as well. I still get about 4 out of 10 referrals from Realtors and the others off the Internet but that number is changing because of the growing number of Realtors I'm getting that use me all the time now. I still think it is because I marketed myself as a foreclosure inspection specialist and offer more personal service than others do. I don't know if I am actually giving more service than others but I think I am convincing the Realtors and clients that I am. I try to offer more and set up my website to offer more information than a lot of other inspectors do but maybe they offer the same service but don't tell their clients. I don't know.

Dave Taurinskas,

I read the thread today and noted you made several references to the extensive work you have done on your site.

Kudos. That is one sweet, tight, user-friendly, marketing savvy, fine site!

Loads fast - easy to read - and well written - wow!

Drips confidence, experience and reassurance and de-mystifies on every page!

Well done - I can see why you're busy - You sold me on the third page I visited - the rest was pure enjoyment and admiration. Fine work indeed.

H.G.

Thanks, I guess my days at college taking classes in Art, Marketing, and E-Commerce are paying off. My site is serving me well.