Thread: Good week, bad week

I figured Jan would be slow, and it was. I figured Feb would be kick-ass and it was, until this week, suddenly nothing, but worse than nothing, people canceling because somebody would do it for "$100 less".

I am starting to wonder about this. I charge a minimum of $395 with basically 15 cents per square foot for over 1800 sq ft. I have never really had a problem with price shoppers before.

Of course, I would rather work less hours for the same pay rather than reduce my prices, but an beginning to question my pricing.

I inspected a home recently that I had inspected in 2006. The new price was $15 more, so I haven't increased my prices much. My general rule of thumb is when people complain about the price, It is time to raise prices, but this is a new world. Honestly, I am tempted to raise my prices as lowering them has never increased business.
What think you all?

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Originally Posted by Benjamin Thompson

I figured Jan would be slow, and it was. I figured Feb would be kick-ass and it was, until this week, suddenly nothing, but worse than nothing, people canceling because somebody would do it for "$100 less".

I am starting to wonder about this. I charge a minimum of $395 with basically 15 cents per square foot for over 1800 sq ft. I have never really had a problem with price shoppers before.

Of course, I would rather work less hours for the same pay rather than reduce my prices, but an beginning to question my pricing.

I inspected a home recently that I had inspected in 2006. The new price was $15 more, so I haven't increased my prices much. My general rule of thumb is when people complain about the price, It is time to raise prices, but this is a new world. Honestly, I am tempted to raise my prices as lowering them has never increased business.
What think you all?

Face it, now a days folks are shopping for the best price. I do it and I'm sure you do it as well.

You need to price shop your local competition and then price yourself accordingly. I have lowered my pricing about 15% across the board from what it was 3 years ago. I did not have a choice if I wanted to keep inspecting homes!

What Scott said. I hated the idea of discounts and lowering my fee. But buyers who price shop around here will let as little as a $10 difference in fees be the determining factor in who they will hire as their HI. $10-$20 can be the difference between working or staying home in your pajamas (or whatever you wear to bed).

Up through 2007, I didn't have to offer any discounts. Work was plentiful enough that it wasn't needed. When the economy tanked, things changed. Discounts now keep me in work and help put me in front of people so they can see my face, get to meet me, and know my name which helps build up a referral base. I'm not leaving a lot on the table, maybe $20-$30 an inspection tops. I can live with that. But if you aren't getting many price shopper calls, then lowering your fee probably isn't going to result in more work.

I'd rather schedule 10 inspections at $310 or $320 than quote 10 inspections at $350 and stare at an empty calendar.

Originally Posted by Nick Ostrowski

I'd rather schedule 10 inspections at $310 or $320 than quote 10 inspections at $350 and stare at an empty calendar.

Can I have an Amen!

Good info to ponder! Where do you $195 or whatever?

This market's funny to say the least.... one week good, two bad... busy in December, slow in February. There's just really nothing normal anymore.

That being said, for my area $395 is a pretty steep starting point. A couple years ago it may have worked but today I can see you losing some work. But, I'm not sure about your area.... maybe that's not that far off?

Around here most start in the 325-350 range. There always the fly-by-night franchise that will do any house for $275 but I think many/most people see thru that.

Similar to the others, I now compete on price more than I'd like to. If I'm sitting with an empty schedule for the next day and someone calls with a new house, they're likely to get a pretty good deal. A foreclosure/fixer across town on a Friday afternoon? Not so much. It just all depends how much you need/want the work.

The irritation/anger often thrown around here surrounding price has often made me laugh.... at the end of the day it all comes down to supply and demand. Unfortunately for us... it's been awhile since we've been in high demand. It will come around though.... one of these days.... maybe.... probably....

Originally Posted by Benjamin Thompson

Good info to ponder! Where do you $195 or whatever?

You go with an average! I doubt that $195 is the average!! If it is then I might consider moving!

I had to lower prices a couple years ago or I would not have been working. The sad part is everyone that i lowered the price toward but not at have lowered their prices more. It is getting insane.

I priced a 68 year old 3000 sf pier and beam with an addition apartment over the garage and a termite for what I thought was too low a price today. I actually regretted saying the price as it was coming out of my mouth because it was too low and I actually accidentally quoted lower than I meant to. The once potential client proceeds to tell me with a snicker that the 3 folks they called before me were already 75.00 lower and then said thanks and hung up.

I won't go lower so I may not be working soon unless work picks up and the prices inch back up. January was up and down but I made it thru alright and February seemed as though it was starting good and then died last week and this week is a little slow.

Come on spring.

I have not raised my prices for 3 years. In January I lost a couple jobs to someone doing $250 inspections. I also lost one for $200. I had quoted $350 for all of them. Since January was my worst month ever, I kind of wish I would have taken the jobs. At least I would have had $700.

On the other side, I also scheduled a job last week and one this week, and they never even asked me how much the inspection was until the very end of the phone call. They didn't care, they wanted me.

One of the inspectors in my Chapter was saying that he has only had 1 inspection since the first of the year. Some days the only phone calls we get are people trying to sell us something.

Quote:

Originally Posted by Benjamin Thompson
Good info to ponder! Where do you $195 or whatever?


You go with an average! I doubt that $195 is the average!! If it is then I might consider moving!


Man Scott, You are good, I wrote that and don't even know what I was trying to say!

Man Scott, You are good, I wrote that and don't even know what I was trying to say!

Did Jack or Jim get ahold of your 'puter.

I think a wild turkey mighta wrote that!

Yeah, I've been hearing the "$100 less" remark also. There is a local guy charging $250 and he does the home inspection and the wood infestation report! Outrageous!

I'm still waiting for the uptick I saw in December and January to start up again. The last few weeks have been pretty quiet.