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Price Shoppers


Jerry Simon

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I have noticed that price shopper calls have dropped over the past few months. Coincidentally the number of licensed inspectors in our state has dropped from around 1100 down to around 400 over the past two years.

I still get the curious caller from time to time and it is what it is. I give them my price and if they say "I have to call you back", I don't worry or even think about it.

Truth be known I think some of the price callers are other home inspectors checking to see what others are charging.

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I have noticed that price shopper calls have dropped over the past few months. Coincidentally the number of licensed inspectors in our state has dropped from around 1100 down to around 400 over the past two years.

What's strange is that the numbers of inspectors in IL have been steadily growing all year. We're upwards of 2100 guys now. My guess is that unemployment is making people look for alternantive ways of making money and inspections is an easy target. [:-banghea

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I have noticed that price shopper calls have dropped over the past few months. Coincidentally the number of licensed inspectors in our state has dropped from around 1100 down to around 400 over the past two years.

What's strange is that the numbers of inspectors in IL have been steadily growing all year. We're upwards of 2100 guys now. My guess is that unemployment is making people look for alternantive ways of making money and inspections is an easy target. [:-banghea

In TN it is our mandatory E&O that makes folks think twice when it comes to the renewal of that license.

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When I started this gig in 2003, we had 25 inspectors in my service area. We're now down to about 11 but the kicker is that recent research I did myself showed that, last year there was only enough inspections in this same area to keep about 3 or 4 inspectors fully employed. It's hard to get market share with so little elbow room, with so much company. Louisiana requires E&O also. There's about 214 home inspectors in this state.

Marc

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Met a realtor recently who was offering me more houses to inspect while just getting underway on a "fixer upper".

On leaving I said to him, after agreeing with the buyer that I would send them both my report, "Have a look at my work and then call me about those others if you like".

He calls me two minutes after I send out the document with another address. I mention that I just sent out my report to him. He says he hasn't looked yet, and his new buyer is sitting across a table from him, that they had another inspector booked, but he wanted them to hire me. Then I tell him that one will cost extra because it is bigger and farther to travel to.

"My client's on a budget, and he can't do that."

I think, 1) he was not sitting at no table, as his signal kept coming and going.

2)he was trying to get me for this buyer cheaper than the first guy.

3)he was only impressed at the first job that I actually crawled all thru the crawlspace and actually got dirty doing it.

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...but to be honest my phone inquiries are so few and far between lately that I was caught a bit off gaurd.

We commiserate occasionally about how slow it's been. We all agree the last 2-3 years has been horrible. That said, IT'S NEVER, EVER BEEN THIS SLOW. One job last week, two this week. Yeah, the economy is improving...NOT.

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Price Shoppers!

When logic and experience aren't convincing, it depends on how much I want work. Sometimes they just hang up after a price quote and I will call back and take the job at the price they want. I can usually sell an add on at the house such as termite inspection or radon test or other service and get to meet a new agent.

Sometimes negotiations is a cultural thing, so depending on the caller I add a 100 to my price so they feel good when I come down a 100.

On the other hand clients who whine about $25 are usually the first to whine about the dishwasher that breaks down 3 months after the inspection and want to know why they should be out the $50 to fix it

Bill Gosman

W.C.Gosman Associates

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It's a buyers market and the people buying are looking for the best deal, they are the hagglers of the world. So when they call, most will try to get the price down just because that is what the current group does, they haggle over everything. I have found that it just isn't worth it to me so I quote them high, then quickly discount the price to what I would normally charge or offer a discounted radon test. After that I just say, "remember, you get what you pay for, have a good day" and don't worry about them. I've been averaging 4-5 inspections a week which is way low, pays the bills but the good news is I won't be paying taxes on any profit this year! I really feel sorry for the people who try to get into this business now, I don't see how a new person could make it. Look at it this way though, those who make it through this slump will be the ones getting the calls when the market does rise (hopefully in this decade!) Good luck to all- Charlie

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I have a formula for calculating my inspection fees that isn't made known to anyone outside of the company. This formula has seen but two adjustments since 1/1/09. One of them was just last week, involving only FHA/USDA inspections.

When callers inquire about my fees, they can rest assured that they do not need to haggle to get the lowest fees. They will not end up paying a higher fee because they did not haggle. I do business this way because it feels more fair to all callers. The very last thing I want to do is disappoint a client.

Marc

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The zip code of the property to be inspected pretty much sets my starting price. I add all the digits together and then I multiply by 25, then I add 50 bucks.

14626= 19 x25=475+50= $525 or 14470 (my cheaper lower class neighborhood) =16x25=400+50= $450

There exist demographic consistencies directly related to the sum of the numbers in zip codes... no one will admit this but it's how big brother keeps his thumb on entire communities.

I invented this system to be equitable by neighborhood. If it's good enough for Uncle Sam, it's good enough for me.

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The zip code of the property to be inspected pretty much sets my starting price. I add all the digits together and then I multiply by 25, then I add 50 bucks.

14626= 19 x25=475+50= $525 or 14470 (my cheaper lower class neighborhood) =16x25=400+50= $450

There exist demographic consistencies directly related to the sum of the numbers in zip codes... no one will admit this but it's how big brother keeps his thumb on entire communities.

I invented this system to be equitable by neighborhood. If it's good enough for Uncle Sam, it's good enough for me.

You completely rock.

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The zip code of the property to be inspected pretty much sets my starting price. I add all the digits together and then I multiply by 25, then I add 50 bucks.

14626= 19 x25=475+50= $525 or 14470 (my cheaper lower class neighborhood) =16x25=400+50= $450

There exist demographic consistencies directly related to the sum of the numbers in zip codes... no one will admit this but it's how big brother keeps his thumb on entire communities.

I invented this system to be equitable by neighborhood. If it's good enough for Uncle Sam, it's good enough for me.

Wow! I just use an old board game spinner I keep on my desk.

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We have a local coffee shop that does not post any prices. On their price board they have written; Our Coffee is the best in town! Please set your own price for what you think this wonderful cup of coffee is worth! Most pay more than what you can buy a cup for down the street at Starbucks...

This coffee shop has survived and thrived over the past few years. It is always packed and folks love the place.

I wonder what would happen if we told the callers to name their price for what they are willing to pay for a quality inspection?

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We have a local coffee shop that does not post any prices. On their price board they have written; Our Coffee is the best in town! Please set your own price for what you think this wonderful cup of coffee is worth! Most pay more than what you can buy a cup for down the street at Starbucks...

This coffee shop has survived and thrived over the past few years. It is always packed and folks love the place.

I wonder what would happen if we told the callers to name their price for what they are willing to pay for a quality inspection?

I'd be homeless in a year.[:-taped]

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Losing a cup of java to a tightwad is one thing, doing an inspection for that same tightwad for the price of a now cold cup of java is something entirely different.[;)]

Marc

No, not after the inspection!! You ask the caller when the call for they price! "So, Mr Caller we have a new pricing program. We let you tell us what a home inspection is worth to you! Keep in mind Mr. Caller that we will be at the home for 2-3 hours or longer depending on the size of the home. So, Mr. Caller what would you like to pay for this inspection on the most expensive thing you will ever purchase!"

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The zip code of the property to be inspected pretty much sets my starting price. I add all the digits together and then I multiply by 25, then I add 50 bucks.

14626= 19 x25=475+50= $525 or 14470 (my cheaper lower class neighborhood) =16x25=400+50= $450

There exist demographic consistencies directly related to the sum of the numbers in zip codes... no one will admit this but it's how big brother keeps his thumb on entire communities.

I invented this system to be equitable by neighborhood. If it's good enough for Uncle Sam, it's good enough for me.

I just applied that formula to my zip and came up with my base fee. [:-graduat

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If you guy's are losing business you want, you need to put the whole price shopping thing behind you, and work on your phone skills.

The reason most of these folks start their call with "how much", is because they don't know how else to start the conversation when they call.

This is your shot at earning their business. This is when you sell your service and more importantly, you. This is your chance to keep them from making that second call.

Write up a phone presentation, keep it on your desk, and stick to it until you know it by heart. Here's who I am. This is my background. This what I will do for you. Features and benefits.

Talk to the people like people. Find out who they are, what they do, and try to hit a common ground. People love to talk about themselves. The more you encourage it, the quicker it breaks down barriers, and puts them at ease with you. People don't buy prices, and they don't do business with folks they're not comfortable with.

Get an Email address so you can send a sample report and a copy of the contract for review. When they give it to you, it's a small commitment. You're half way there.

Ask for the appointment. "My schedule is open on Thursday at ten am. Will that work for you?" If it's not going to work, they'll tell you right then, what day and time will work. Done deal.

Now it's time to discuss the fee and manor of payment. Try not to forget that before you hang up. It's happened to me quite a few times.

Instead of blaming the price shoppers for lost income, hone up your phone sales skills. They're going to hire someone.

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. . . I wonder what would happen if we told the callers to name their price for what they are willing to pay for a quality inspection?

I've been doing something like that for years. If someone questions my price, I'll sometimes (not always) say, "I'll tell you what. Book the inspection with me for $xxx.xx. That's what I think the inspection is worth. After the inspection, if you feel that my fee is out of line, you can pay me whatever you think it's worth." I've never had anyone try to pay me less.

- Jim Katen, Oregon

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If you guy's are losing business you want, you need to put the whole price shopping thing behind you, and work on your phone skills.

The reason most of these folks start their call with "how much", is because they don't know how else to start the conversation when they call.

This is your shot at earning their business. This is when you sell your service and more importantly, you. This is your chance to keep them from making that second call.

Write up a phone presentation, keep it on your desk, and stick to it until you know it by heart. Here's who I am. This is my background. This what I will do for you. Features and benefits.

Talk to the people like people. Find out who they are, what they do, and try to hit a common ground. People love to talk about themselves. The more you encourage it, the quicker it breaks down barriers, and puts them at ease with you. People don't buy prices, and they don't do business with folks they're not comfortable with.

Get an Email address so you can send a sample report and a copy of the contract for review. When they give it to you, it's a small commitment. You're half way there.

Ask for the appointment. "My schedule is open on Thursday at ten am. Will that work for you?" If it's not going to work, they'll tell you right then, what day and time will work. Done deal.

Now it's time to discuss the fee and manor of payment. Try not to forget that before you hang up. It's happened to me quite a few times.

Instead of blaming the price shoppers for lost income, hone up your phone sales skills. They're going to hire someone.

This 100% correct. I too have fallen on the "tire kickers" train. 8 calls in the past two weeks. At first I blamed price, but then I then I changed the way I was holding my head...[:-blindfo

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. . . I wonder what would happen if we told the callers to name their price for what they are willing to pay for a quality inspection?

I've been doing something like that for years. If someone questions my price, I'll sometimes (not always) say, "I'll tell you what. Book the inspection with me for $xxx.xx. That's what I think the inspection is worth. After the inspection, if you feel that my fee is out of line, you can pay me whatever you think it's worth." I've never had anyone try to pay me less.

- Jim Katen, Oregon

Interesting but I can't do that here in Louisiana. We're required by the state to get the client's signature on a contract that discloses, among other things, the price of the inspection. It has to be signed before the inspection begins.

Marc

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