Results 1 to 6 of 6
  1. #1
    Dan Popoff's Avatar
    Dan Popoff Guest

    Default Ready to get started

    Hello again everyone. Been awhile since I posted. I have completed the AHIT training and waiting on the State of South Carolina to approve my application for taking the test. I am a pco making the switch to HI. I have targeted July 1st as day one. In all my research the number subject all realtors say to me is price sells and they were all to happy to share pricing with me of what my new competitors charge. My question for the more experienced HI's is, how did you determine to starting price when you got into this business? I look forward to posting and learning from you all.

    Similar Threads:
    Inspection Referral SOC

  2. #2
    Join Date
    Mar 2007
    Location
    Spring Hill (Nashville), TN
    Posts
    5,847

    Default Re: Ready to get started

    Quote Originally Posted by Dan Popoff View Post
    Hello again everyone. Been awhile since I posted. I have completed the AHIT training and waiting on the State of South Carolina to approve my application for taking the test. I am a pco making the switch to HI. I have targeted July 1st as day one. In all my research the number subject all realtors say to me is price sells and they were all to happy to share pricing with me of what my new competitors charge. My question for the more experienced HI's is, how did you determine to starting price when you got into this business? I look forward to posting and learning from you all.
    First I would go to this site http://www.costofbusiness.com/

    Once you see what it really cost to do business, then you will be able to set your price. From what I have seen and been told from inspector friends in SC, you will be fighting the low price war in your state. You need to worry about what you need to make it. Most do not even think about the various cost involved in owing your own business.

    For the first couple of years you might not see any profit. Don't fall into the low price trap that so many inspectors have fallen prey to. Once you are in that low price arena is like a sand trap in Augusta; it looks easy to get out of but you will be surprised when you try.

    I would say that a good starting price for a 900-1200 sf small home or condo should be no less than $300. This is a good starting price and you move up from that point. I find that I have a larger margin of profit on the larger homes, say in the 4000sf+ range. When you get into this size home, it has been my experience that pricing is not as big of an issue with the client as it is with a smaller home.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  3. #3
    Join Date
    Mar 2007
    Location
    Oregon
    Posts
    2,365

    Default Re: Ready to get started

    I totally agree with Scott.... $300 is a good starting point. It's inevitable that you just make less on the smaller/older homes. For the same money I'd rather inspect a 4000 sq ft new home over an 80 year old 800 sq ft home. The problem is the market just won't bear the same fee and it's just part of business that some jobs are more profitable than others. I try to not get hung up on any one job. Otherwise, you'll just drive yourself nuts and feel like you're losing your butt sometimes.

    Also, I never do anything to attract more old house business. Of course, I'll take them when they come along but I'd much rather gear my marketing and efforts towards newer houses.

    As for what guys in your area are charging you might just check our their websites. I was recently checking out sites from around the country and found a lot more inspectors are posting their prices than used to.

    Of course, you can just do what all the other new guys do.... call and pretend to be a buyer. But, realize that we can spot you a mile away when you call.


  4. #4
    Join Date
    Oct 2003
    Location
    Rockwall Texas
    Posts
    4,519

    Default Re: Ready to get started

    Dan,

    Welcome to the board. I'm also a PC company owner who has went more full-time in the HI biz. The PCO biz here in Dallas is not what it used to be. Prices on PC and termite work here have gotten to ridiculous low prices that I've backed completely out except for doing WDI's on HI's.

    As far as the HI business, My advice is Never forget who your true client is.

    rick


  5. #5

    Default Re: Ready to get started

    It's inevitable that you just make less on the smaller/older homes.
    I make a little less on smaller homes, but not on older homes. I upcharge for any home over 50 years old, and upcharge for detached structures such as the garages. Almost every older home has a detached garage, plus there are often basements instead of crawlspaces (bonus).

    I am close to making about the same fee no matter what the size/ age of the home is. Whenever I am asked for a price, I will figure out how long that particular home will take, and charge accordingly. I am more apt to adjust my price slightly down for a large new home, while I won't budge on an older home that will be much more challenging. There have been several times that I have jacked the price way up hoping to price myself out of the inspection...... doesn't always work.


  6. #6
    Join Date
    Mar 2007
    Location
    Atlanta, Georgia
    Posts
    1,078

    Default Re: Ready to get started

    I add a surcharge to homes more that 25 years old. Takes longer to inspect and longer to report because someone has always tinkered with them. More to find, more to report.

    I charge $2 per year for homes over 25. For instance a home built in 1969 would be 40 years. Add $80 to the base fee. I explain the cost to my clients. Most understand and are willing to accept the up charge.

    Had a 69 and 71 year old this week. Adding $140 to the base fee made them worthwhile. Fortunately both were 1200 or less square feet.

    When I started out I was $50-$75 less than many. Did not get many jobs. When I raised my prices, I got more jobs. Clients resisted hiring the cheapest fearing I was cheap because I was poor quality. Once I raised my prices to be equal or higher than competition, clients decided I must be worthwhile or I could not charge so much. Job volumne went up. The low price leader may not be of any value to you or the client.

    "The Code is not a peak to reach but a foundation to build from."

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •