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The Newest Home Inspector Marketing Trick

I just received an email that encouraged me to participate in a "new" marketing program that offers my clients FREE gas and Groceries. Here's an excerpt:

Grocery Program Helped Me Steal A Sale. I was in a recertification program for my termite license today and my cell wouldn't get reception in the building. I leave this afternoon and found out someone left me a message this morning to get an inspection. Called back, he said he already booked with someone else and was ready to hang up. I said, "Do you mind if I asked who you went with?" He tells me. So I tell him about the grocery program and that you'll get your money back and more. So he says he'll talk to his wife and call me back. He called back in 5 minutes and booked the appointment(must of needed the time to cancel the other guy). THIS PROGRAM IS AWESOME!

TNSTAAFL! For those of you not familiar with the acronym, it stands for "There's no such thing as a free lunch!" and was one of the more memorable lines from Robert Heinlein's A Stranger in a Strange Land.

Maybe the Oregon Attorney General can put it into perspective:

Associated Press March 11, 2009 PORTLAND, Ore. -- The latest scams arising out of the recession include offers for "free" gas or groceries. The Oregon attorney general's office says the misleading and possibly illegal promotions typically lure consumers with offers of hundreds of dollars of free groceries or gas if they purchase certain products and mail the receipts. There's often a registration fee, such as $5. The scammer sometimes sends the first payment to encourage the consumer to participate. But future rewards fail to show up when consumers continue to buy the product and mail the receipts. The Oregon Department of Justice is participating in a national crackdown of the false promotions and has warned Oregon retailers about them.

Personally, I think that if an inspector needs a bribe to get business, he should work harder on building his reputation for integrity and competence.

Posted by Paul Duffau on 03/12/2009 06:03 PM

Comments (14)

Marketing Scams in the Home Buying Channel

home inspection, scam, marketing

Post is included in group: Professional Home Inspectors
Post is included in group: Home Inspectors across the country
Post is included in group: Home Inspections
Post is included in group: Ask the Home Inspector

14 Comments on The Newest Home Inspector Marketing Trick

MAR

Paul, I agree with you. Inspectors need to be careful what programs they get into. Home warranties, for example, offered by an inspector may not be permisible in their state.

Wow, I can't even believe what some people will do to try and lure in customers. It is very unfortunate that in these tough economic times we have people that will still find a way to take advantage of people and most of all their families.

MAR

I haven't heard of this scam happening up here in Wyoming yet. Hopefully we won't. There are only a small amount, 4 or 5, inspectors in the Casper area and from what I know of the other guys I am pretty sure none of us would under cut the other guy with a scam such as this. I hope anyway!!!

Paul, I GROK that!

Dan,

One nice thing about working a small market is that it is more "retail" based. If one of the inspectors here tried that, I would be talking to our agents about the downside - and not so much to slam my competitors because I get along with most of them but to protect our clients.

MAR

I don't understand why this is such a bad thing, (if it indeed works). Why wouldn't you give an added value to your service such as free gas or groceries? It's not about undercutting the other guy. When all home inspectors offer the same quality of service, reports, and expertise, what sets you apart? I don't see a downside if the program works and is of value to the client.

Rob,

It's that "if it indeed works" part that's the problem. Many of the offers are scams which is why folks like the Oregon Attorney General are targeting them.

I'm not sure I approved of a guy that also brags about "stealing" a sale but that's just me.

Hi Paul,

I guess my question is, if it's a reputable offer and not a scam in any way, why not use it? I know there are inspectors out there who offer different levels of service, weather it be mold sampling, air quality, lead, asbestos, water testing, accepting credit cards etc. Most offer these services to a. provide a service their competition doesn't or b. make extra money on a particular inspection. Some of these actually go beyond the scope of a home inspection which opens a whole other can of worms.

Now if it is a scam, then lesson learned to those who provide it. However I don't see it as "stealing" an inspection anymore than I would think someone who used thermal imaging is "stealing" business from those who do not offer that service.

MAR

was the email from the Prime Minister of Nigeria?

MAR

Rudy, I think it was the Finance Minister, I got his letter last week and I'm going to be retiring soon.

See Ya suckers! LOL

I have been approched on this "offer". Here's the website by the way: www.upyourprofits.net If it's legitimate, it might be suitable for a sales pitch for a car lot or a ambulance chaser. Just not a profession like Home Inspecting. We already get trashed for being the "bad guy" even though it's the house that committed suicide. We were just the bearer of the bad news.

I think it sets a "cheap/discount" flavor for a business. Do I also take up used car sales on the side? Maybe I should offer to "fix" the defects I find? Oh, I forgot! We can't do that either.

If we do not act like a professional, we will not be treated like one.

Dana Bostick, Professional Home Inspector & Certified Infrared Thermographer

MagicLeakFinders

MAR

The gas and food rebates sound like a good idea. But if a business really wants to succeed they need more than gimmicks. But if you want to give a real value added benefit I would give away the millions that a long lost uncle left me in Nigeria and keep the 30 % for giving his money to charity. I don't want 100s I want millions. I'm sure the rebates are on the up and up just like investing with Bernie Madorff (sp ?) we will all get 25 % back on are purchases.

I have a guy in my market that has been touting these rebates, I love it. The Top Producing agents are wondering why this guy has to resort to gas rebates to get inspections. They want to know whats next are we going to start giving time share rentals away with each inspection. I agree with one of the comments about this being more suited to a used car salesman. I have been telling people that ask - if you want a top notch inspection I'm your man, if you want gas rebates, Amway, free oil changes and a $ 195 inspection then I'll give you his name. When a inspector lacks confidence, skill and marketing ability they have to put out a smoke screen to make up for thier short comings. Radon. water test, septic, thermal imaging are all seen as professional services by agents and clients. Look at the rebate web site.....its testimonials are from car salesman and furniture sales people. I do hope that my competitor keeps using the rebates, I am encouraging him everytime I see him. I have picked up 2 Top Producers off of him that think he must be desperate (he is). People want to do buisness with winners not someone seen as desperate. When your seen as an expert price is not as much as a factor.

MAR

Different strokes for different folks. Unfortunately, home inspectors work in a price-sensitive industry, so gimmicks quite often work, but only if the person continues persistently and consistently to offer such gimmicks, which they usually don't. Ultimately the original gimmick gets old and they run out of creativity coming up with additional gimmicks, so they quit offering them. Then it falls back on their expertise and bedside manner, and when those are factored into the equation without gimmicks, they usually are not the best. It can get quite cutthroat in price-sensitive industries, though.

APR

I am not going to comment on the worthiness of this particular offer (although nothing on the surface screams scam), from my own personal experience regarding third-party offers is that sometime between the conception stage and the public adoption stage inevitably somehow the offer gets changed (read reduced in scope) and the home inspector is left explaining to his customer the fine details of the program. Time by the way which could be much better spent on going over the finer details of the home he just inspected.

So... I have personally chosen not to offer any third-party incentives to buy, unless I control all aspects of the program and cannot be embarrassed by a third-party affiliate if they decide to change the program midstream of my marketing plan. This approach works for me and my company, your mileage may vary.

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