TOPIC: Pricing Structure

I guess that I drifted off into examples too much in my last post and got lost. My point is, why do you feel that you need to be competitive? I think that you should be the guy that everyone else competes with! That is where the marketing strategy comes in. It will not happen overnight. You could just raise your prices, but you need to have an answer to the phone call asking why you charge more than this guy or that guy. In your last post you mentioned that a lot of guys are supplementing their income with contract labor. That in itself might be one way to create separation. You are a dedicated Home Inspector not some guy hanging a door or planting shrubs one day and doing an inspection the next. I feel people are naturally curious and if you were to inch your prices up slowly people will still call, if for nothing else to wonder why you charge more. That is when you sell the reason you are a little more, but this is what you get. People will pay more if they feel they are getting something for it and they are, the best Home Inspector and Home Inspection that Oklahoma City has to offer. You just need to be able to tell them why.

Watch the Nachi TV episode with Ken Compton and Joe Ferry on marketing for the new inspector. Even though Ken is promoting membership in his marketing Org. he has a lot of good ideas.

Pricing is something that I am passionate about because even here in NJ I feel we do not charge enough. With what NJ inspectors have to go through in State Regs. to get  Licensed and insured, 350.00 for a HI is not enough. Do you see much disparity in the fees of a Lawyer, Doctor or Accountant across State lines?  Finally I think I am going to add " you get what you pay for, and NO DISCOUNTS" to my signature, because I truly believe in that. 

You mention something I have rolled around in my head and that's market the fact that I do this full time and not a contractor.  As for the TV episode I have watched it and it was VERY good.  I have since made my an outline that I can look at that shows where I am and where I want to go with my business.  Jus have to move one step at a time (which sucks cuz I need it now).  lol

I do offer discounts though.  When I first got into it, I offered up to 30% off.  Now I wont go past 20%, and 10% of that is coupons that I put out in the past.  Im slowly phasing them out.  I am trying to move it to a point where I only offer 10% discounts to military, teachers, and emergency workers.  I feel those are the people that help out our community and I want to give something back.  Eventually those coupons I put out will disappear so I wont have to worry about them.  But if one pops up, I honor it and move on.

As for offering other services, the one I get asked the most about is termite inspections.  And whats crazy is most inspectors don't offer them here.  Or if they did, they have switched to doing that full time.

All and all, I think I'm on the right track.  Only time will tell.

John,
Just a thought: You may want to market a 90 day warranty on your inspection if your competitors are not. The cost is minimal (probably what you may be discounting right now.) This may help differentiate you from your competitors as well. I don't do this because I have a good referral base, but it may help you offer a 'valuable' amenity to your inspection that sets you aside.
Bob

I've thought about that and may I could look into them a little more but I'm not real crazy about them.  Its not to say I wouldn't.  But anyway, this takes us back to the reason I wrote this topic.  If we add little things like this to our inspections its only a couple of bucks here and there.  But those couple of bucks add up after a while.  Which in turn brings back the question, how are these people making a living doing this if they aren't charging enough.  Seems to me, if they really broke their fees down after all expenses... they probably make around $11 bucks an hour or so.  I feel like with the education we all put in, $11 isn't much to sneeze at.

Oh and for my disclaimer, $11 an hour is what I came up with after 10% tithe, and the remainder split 3 ways and then 1/3 of that is given to me for my pay.  Divide that pay with 6 hours of time it took, you get $11 an hour.

I agree...I'm not a fan of the yearly warranty especially after seeing the 'contractors' who come to do the work. A 90 day basically can guarantee your work and set you aside from the others. The cost shouldn't be more than what you may be discounting which you say you are slowly eliminating...understanding you're dealing with 'lowballers?' in your market, you can also eventually add the cost of the warranty into your fee. I understand your frustration; I lost 2 jobs last week to lowballers-jack of all traders...(but I will not lower my prices) my hopes are they'll have to work twice as hard because of their prices...and they won't stay in business, because they certainly can't afford the insurance etc...needed to survive.
One can dream, can't one?  :-\

LOL I'll dream with ya!  lol