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Cut Throat Pricing on Inspections

By
Home Inspector with Pillar To Post

I just had an inspection cancel on me and wanted to share the experience with you. I booked it yesterday for $410 and this was after the agent and client had called around and price shopped several companies.

 Today the agent calls, he's never used us before but many in his office do and he 'been in the business for over 30 years', and says I got XYZ Pest Control to do it for $300 and since it's a newer house there won't be anything wrong with it. I explained we've been in business for over 10 years, provide an excellent report onsite with pictures, email it to you and our client later that day, it includes the P&D, we have $1,000,000 in Errors and Omissions Insurance not just the State minimum. Also, not to disparage my competition but I had no clue this company did home inspections. Nothing I said swayed him because he'd "seen it all in 30 years and I've been working with these guys for 20 years and they do a great job."

After hanging up with him I was curious so I called the Pest Company posing as a potential client and asked if they did home inspections because their website mentions nothing about them.

 "Well we recently started doing them" she said." We do the pest part and hire a home inspector we pay $187.50 to do the home inspection part". She told me this without even knowing I'm her competition!

 I then told her who I was and I just lost an inspection I had booked yesterday to them and I had booked it at $410 after the client and realtor had price shopped everyone else so they just left $110 on the table. "Oh I'll pass that on to our owner because we just raised our prices $50 two weeks ago."

 I then called the client directly and said "I'm not upset at all you went with someone else, that's business, but I wanted you to know the home inspector you hired is doing it for $187.50. What do you think he isn't doing that I am? Do you think he has $1,000,000 in E&O or 10+ years in business?"

 "Oh I'd better call my realtor and ask him about that but for now I'll stick with the $300 because my agent says they are good."

"No problem. Call me back if you change your mind and thanks for thinking of Pillar To Post."

Oh well. His reluctance to pay a reasonable price on a house that's a short sale costing $600,000 tells me he might get what he paid for. I just want him to remember who told him to go with the $187.50 inspector when there is a problem.

The Right Tool for The Right Job
Fast, Good or Cheap.  
 
Pick two.
Below is The Designers Holy Triangle! When creating a project, clients must choose only two out of the three options. They can't have it all. It's a reality of life we all have to live with. 
 
Good + Fast = Expensive  
Choose good and fast and we will postpone every other job, cancel all appointments and stay up 25-hours a day just to get your job done. But, don't expect it to be cheap.  
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Good + Cheap = Slow  
Choose good and cheap and we will do a great job for a discounted price, but be patient until we have a free moment from paying clients.  
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Fast + Cheap = Inferior  
Choose fast and cheap and expect an inferior job delivered on time. You truly get what you pay for, and in our opinion this is the least favorable choice of the three.  
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Posted by

Chris Livingston

Owner/Oregon Certifed Home Inspector

Pillar To Post

www.PillarToPost-PortlandWestSide.com

Click here for a List of potential Specialty Contractors

P.S. Any client of ours has open access to the Sears Commercial Center for "contractor" prices on everything from TV's to washers etc and on all brands (Bosch, LG, Kitchen Aid - not just Kenmore). Discounts of 5% to 50% from regular store prices are offered exclusively through their commercial group. This is a fantastic opportunity for our clients who may need something for the new home. Call (503) 624-3481 and ask for James Shufelt for details. Be sure to mention the Pillar To Post customer number CU071473

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