The Franchise Informant | Pricing Your Services the Right Way

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Pricing Your Services the Right Way

PRICING YOUR SERVICES THE RIGHT WAY
 December 14, 2021 |  Business Tips, Marketing |  client satisfaction, inspection industry, small business, money management, entrepreneur, business growth

By Kimberly Stevens, NPI, Inc.'s Marketing Coach

Finding the right price for the services you provide can be pretty tricky. Set them too high, and your customers will look elsewhere. But price them too low, and you might find it hard to break even. If you’re a new business owner, you might be stuck in a gray area about the best way to set prices.

Research is Your Best Friend
The best way to figure out what’s a reasonable amount to charge is to check out other businesses near you. Look at their websites and see if they have their pricing listed. You can also look at what other services they add and any deals they offer. Just a little bit of leg work will prove to be valuable as you get up and running.

Flat Rate by Square Footage
One of the common pricing strategies among inspectors is a set dollar amount based on the property’s size. This system is mainly used for residential properties that aren’t as extensive as larger commercial jobs. You can start at the lowest size you commonly inspect and increase by a certain range to the largest. This helps ensure that you’ll get paid enough for the job. It also makes it easy for potential customers to compare you to your competitors. They’ll know exactly how much they’ll have to pay and see if they’re getting the best price available.

Quoted Prices
Quoting clients for an inspection can be good if you don’t want to box yourself in at a set amount. You’re able to more accurately price the inspection, which helps you and the client. When giving a quote, you’ll also learn more about the property from the start. Location, age, and size are just a few additional pieces of information that give you a better idea of the job. 

  • Travel: If you cover a large territory, traveling to different locations is a regular part of operating your business. When setting your prices, take into account travel expenses such as fuel, possible lodging, and time away from other jobs. 
  • Age: Age can also be a factor in an inspection. Older buildings can be full of hidden deficiencies and potential dangers such as asbestos. Since you’re taking on more risk, you should be properly compensated. 
  • Size: Commercial properties, especially, can be unique in size and scope. You may price a hotel differently from a warehouse, as it has more individual rooms.

Remember You’re the Expert
When it comes to pricing, always remember that you’re the professional in this situation. Some people may try to negotiate your prices because they don’t understand the benefits of what you’re providing. Don’t let this frustrate you. You definitely don’t want the client to feel nickel and dimed, but you need to value yourself and what you’re providing. The right customer will understand that investing a bit into their inspection now will prevent costly repairs later.

You’re Not Alone–Pricing is Challenging
The good news is that you aren’t the first person to wrestle with this dilemma. Nearly every business owner has had to get over the obstacle of competitively pricing themselves in their market. Even some established inspectors have dealt with adjusting their prices to keep up with different fluctuations. Knowing that someone else has been in your shoes means there are lots of people you can reach out to. Don’t feel like you have to figure it all out by yourself!

Questions about pricing your business? Reach out to Coach Kimberly!

 

About the Author
Kimberly Stevens, Marketing Coach
The baby of eight children, Kimberly learned quickly to master the art of communication in order to be heard. She has been with NPI for more than 15 years and is passionate about getting to know our franchisees. Kimberly is a certified marketing and business coach, trainer and speaker, leading training seminars, one-to-one coaching and more. She's a high-energy, fiery red head and an eternal optimist. Her greatest joy is celebrating our franchisees’ victories!


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