It was a great (albeit rainy) day here in Orem, Utah. I hope you all enjoyed your own Father's Day festivities. We celebrated Michael today for the wonderful father he is. The day started with breakfast in bed, followed by the opening of some great presents, attending church where all the kids sang to their fathers and gave them cute presents and brownies and it concluded with steak, baked potato, baked beans, corn on the cob, salad, and strawberry shortcake. Michael says he had a great day and I think he deserved it. He strongly recommended that I carry on the tradition I started two years ago and failed to do last year...which is write the MMM for him on Father's Day. So I hope you will bear with me this week and I will try and share something of interest that may or may not be helpful to you in your business. Since I have nothing to share with you about the technical part of the home inspection business, I will stick with what I know...the office/business/marketing end of the business.
The title is catchy, isn't it?? If only it were as easy as the heading implies. The difficulty in writing about any marketing topic is that everyone is at different phases in their business. If you are just barely starting your business, you need different advice than those who are just seeing the "booking snowball" start rolling and picking up speed and different advice than those who are doing steady inspections and are trying to stop the snowball from running them over. So, with that in mind, I would like to address these three different phases and you should just skip to the one that applies to you.
We have spent a lot of time refining the process of getting someone to book an inspection. How do you get the people who call you to book an inspection with you and not your competitors? That is the golden question. Inspectors, if you have anyone who helps you book your inspections, ask them to read this with you. It's important that you both are doing the same things when booking an inspection. I do some of the booking (depending on the day and how crazy the children are!!) and have worked hard at refining this process.
The biggest thing I can tell you to do is what I recommended two years ago: answer the phone in a professional, creative way that catches their attention. Read what I said about this subject two years ago:
The phone rings and your heart jumps and your palms start sweating. You stare with disbelief at your business phone. Is that really the business line ringing? You clear your throat....."It's a great day at Michael Leavitt & Co Home Inspections. This is Shelly. Can I help you?"
Anyone who took their home inspection training from Bill Ball & Associates were encouraged to answer the phone this way. Bill Ball really knows what he is talking about! Let me tell you from experience, it is a mouthful to say and I was very reluctant to say it in the beginning. Michael had a big sign posted at eye level in the office so that I could read straight from the script. He even put "(insert name here)" where I was to say my name (My daughter thought that was part of the script--"This is insert name here!....") Anyways, it may feel uncomfortable at first, but you really should try it. It is amazing the positive responses we get to that opening line. If they have never called before, they are taken aback and usually make a comment about what a great opening line that is or that it really is a great day or something. It really is a great ice breaker. And in the beginning, you NEED a good ice breaker. It also sets you apart from the other inspectors that they have called. You can bet they are not getting that kind of response from them!! (Unless you have other AII inspectors in your immediate area!)
So if you are currently not using this great phrase, I would like to come right out and call you chicken......but that wouldn't be nice. So instead I'll just say that you probably haven't realized the great value of answering the phone this way. (You big chicken!!) Practice a couple of times before the phone rings so that it comes out smoothly and try and SOUND like it's a great day at your business! You can't just say it--you have to mean it, too!
It seems to me that every person who calls asks the same question. So how much do you "charge"? This is usually the only question they have thought of to ask you and it can be a very short conversation if you answer this opening question with just a fee quote. The key is to keep them on the line as long as possible. I usually answer this opener with, "We base our fees on the size, age and components of the home. Can you tell me something about the home?" If they hesitate and don't seem to know what I mean, I ask them what is the square footage of the home. And then I ask as many questions on the pink sheet as I can: "How old is the home? How many bedrooms? How many bathrooms? Is it occupied or vacant?" "Do you have an accepted offer on the home yet or are you still negotiating?" ANYTHING to keep them on the line.This is a great way to get them to open up about the home and to start talking. You want them to do most of the talking. If you find you are doing most of the talking, quickly think of a question that can elicit more information from them. Sometimes I ask them if they are working with a real estate agent or on their own. I can start a good conversation with either answer.
Mr. Potential Client: "I'm working with an agent."
Me:"Oh, great, then I can arrange with him/her to gain access to the property." OR
Mr. Potential Client: "I'm doing this on my own."
Me: "Oh, great, than it is even more important that you have a home inspection done on the property. You are very smart to have a certified home inspector look over the home for you before you buy it." They love that personal stroke.
When I finally do quote them a fee, I don't just quote the fee. I always tell them how long the inspection will take and what kind of report they are getting (a 15-page computerized report that is very thorough) as well as telling them about the "added bonus" of a walkthrough at the conclusion of the inspection and when they will receive the report. (Then, and only then, do I take a breath!)
Now, in the beginning, that was all I would say and some of the people would just say, "Thank you," and tell you they were just calling around or that they would call back or some lame thing. If you sense the conversation is lagging and they are about to hang up without booking, you should consider doing what we did. We found that we started booking a higher percentage of shoppers when we could offer them more information. Read on.
When I wrote about this topic two years ago, the end of the sentence above was ...a fax machine! It is funny how much the business world has shifted from faxing everything to emailing and/or searching the internet for everything. Need I tell you that this is not a passing fad and this is definitely the way business will be and is being conducted today??!!
Today, the question goes like this...Do you have access to the internet?
I can say that because we have a great web site that Michael spent hours and hours creating. Being the person that he is, he tackled a huge book on HTML programming and then found a program and put together a website with a domain name that people can remember. Do not have a website that has tildes (~) and other nonsense in the address like we did at first. You need to splurge and get a REAL name that reflects what you do and/or who you are.
Let me re-emphasize what Michael has already told you in other venues about creating a website. First, do it. Do it now. Second, make sure you have pictures and lots of information about your business and that people can surf through your site easily. Third, we strongly recommend you add the opportunity for potential clients to book their inspection online by adding an order form section to your website. And most importantly, you must advertise your website address in order for you to notice any traffic on it. It is difficult to get your site noticed purely from search engines (although it can be done for a hefty fee). Your fliers should have your web address on them, your business cards should have your web address on them, you should mention your web address on the phone to clients and you should mention your web address to any agents that you have even the slightest relationship with. If they don't know you have a website, how will they find it?????
But I digress....
If I feel a lull in the conversation or I feel they are about to slither off my hook, I always ask them, "Do you have access to the internet?" I state it this way in case they don't personally have internet access at their house. If you just ask, "Are you online?" the answer could too easily be "no." But they think about other possibilities when you ask if they have access to the internet. Usually they know someone who is connected to the internet--their spouse at work, their realtor, their friend, etc. Then I tell them we have a web site with more detailed information and even the opportunity to book online. They always are interested and I give them the address and then let them go if they are still anxious to hang up. You would be surprised how many of them either call back or book the inspection online. Many people have told us they booked with us because of our website.
If you have not had the opportunity (or the time/funds/ability/desire) to get a website up and running yet, what are your other options? You can rely on what we used to tell people before we got our website...ask them if they have access to a fax machine. For further information and so as not to bore those who have read it before, please refer to the back issue June 22, 1998 ,and read what I wrote about the topic then: what to say and what to fax people once you have their fax number.
If you have ever taken any sales classes or marketing classes, you will probably remember that they tell you to ASK FOR THE SALE. For some people this is easy and for others it is more difficult. You don't have to "pressure" people to book with you if you are not comfortable doing this. Those that are, go for it!! Presume you have the inspection and ask them when they would like the inspection booked. There is nothing wrong with that at all. You have it easier than those who don't feel comfortable asking for the inspection.
For those people who prefer the "non-pressure" approach, one trick we use is to give them two options not on the same day. "We either have Wednesday morning or Thursday afternoon." This gives the ILLUSION that you are very busy but it gives them the opportunity to choose a morning or afternoon inspection. Another tactic to use is while you are gathering information about the home, ask when they put their offer in and if they gave themselves an inspection timeframe. After finding out when their deadline is, ask them if they prefer a morning or afternoon walkthrough and quote a time, such as: "Is a morning or afternoon walkthrough better for you? That would be either 11 o'clock or 4 o'clock?" Now it is much harder for them to squirm off the hook and hang up without committing to give you some money!! And that is the name of the game, right??? Once they have committed to morning or afternoon, I just go ahead and book it from there.
If you are reading this section, you have successfully implemented some basic marketing strategies and are starting to see the fruits of your labor. You are finding that you are not having to "sell" yourself on every phone call and that some people are already convinced before they call you that they want you! What a great feeling!
But the inspections are sporatic and you don't feel you have it made yet. You want that snowball to pick up speed and you want it to do it fast. What can you do? I am no expert, but this is what I recommend you do. First of all, go back to the basics. Read what I recommended to beginners and see if you are implementing any of these suggestions. Can you improve your answering skills? Should you get a website? Do you have a good flier with good information?
Evaluate what you have done to this point to get the phone to ring. Are you handing out weekly fliers? Are you doing office presentations? Are you improving your report style (computerizing, etc.)? Are you manning the phone? Are you returning calls quickly enough?
I have spoken with some inspectors who do not have the luxury of calling people back later. If they miss a call, they miss the inspection. Their market is such that if you do not have a warm body answering your phone, they move on to the next number on their list. Ouch! I am glad we are not like that (yet!). Evaluate your market. If this is the case and you are missing calls, why are you missing calls? Would it be worth it to get a cell phone, forward your calls, hire a secretary, sweet talk your wife into answering the phones? What can you do to make sure your business phone is always answered by someone? That may be the key to unleashing the inspection snowball.
Other inspectors have shared that their market has stiff competition from qualified inspectors. That is tougher to break into than in a market that has virtually no real competition. If your market is fresh and only has inspectors with less-than-stellar credentials and reports, then you just have to get the word out about your training, skills, report style and Association benefits and you will soon see the phone ring. Realtors and buyers are hungry for qualified, good AII™ Inspectors.
If, however, your market already has qualified inspectors then it will be tougher (but not impossible!). What is your niche? Why should they hire you? What does your competition do that is good? What do they do that you would/should do differently? You need to know the answers to these questions before your business will grow. The answers to these questions should be on fliers and should be the focus of your conversations.
NOTE: I would strongly discourage you from being the "cheapest inspector in town." This is not a niche that you want to be in, in my opinion. The challenge with placing your fees just below your competition is that you will get more "price shoppers" and people who don't understand what they are paying for in the first place. And, more importantly, you will be devaluing what you and other inspectors do. We should be raising our fees and people's expectation of the fee, not lowering it.
One of my frustrations with people who call up and are looking for the cheapest fee is that they do not have an understanding of what a quality home inspection includes versus what the other inspectors are giving them. I like to relate it to people who are shopping for a TV. They decide they need a TV and they know they want a 27" color TV with picture-in-picture and it can be either Sony or RCA (it doesn't matter) and so they start calling around. "How much is your Sony 27" color TV, etc.? "How much is your RCA model?" When you find the store that has the lowest price, you jump in your car and go down and buy it! It is the same Sony that Ultimate Electronics was selling for $469.00 but you got it for $419.00. You are a great bargain shopper and can now brag about how cheap you got the TV for. Ha! Ha! Your brother-in-law paid full price! Sucker! Unfortunately, home inspections are not TVs and are not all the same. Yes, their fee may be much lower, but, in relation to the TV story, it is a 13" black & white TV! I thought you wanted a 27" color TVwith picture-in-picture? But you jumped on the inspection company with the lowest fee and got the report back....HA! HA! Jokes on you! Too late....
First of all, qwichyerbellyakin. (That's: "quit your belly aching", if you didn't catch that big word!) You make the Inspectors in the other two Phases sick! They don't want to hear about your "high class challenges", as Brent Foster, our AII™ Chairman, calls them. Count your blessings and be grateful for your business.
"But my wife and kids asked me who I was yesterday when I finally stumbled out of the office." Okay, this is a serious challenge and there are some things you can do.
Option 1: Quit advertising, quit answering the phone and cuss out your favorite, big-time Broker! You will find that within no time you will have lots of time on your hands and be back at Phase 1 wondering what happened to the good ol' days. Your kids will become sick of having you around the house and ask, "Doesn't Daddy work anymore?"
Option 2: Continue advertising and answering your phones as you have always done. Continue offering great service to your agents and brokers. BUT...consider raising your fees. Get paid the same amount and do less work. No wait...this suggestion is serious. Think about it. You decide you need/want X amount of money every month and you currently are working yourself so hard you can't think straight. Now divide that same dollar amount by less inspections and see what that looks like. Instead of 25 inspections at an average of, say, $235 = $5,875.00 -- You now do 20 inspections at an average of $305 = $6,100.00 and have more free time and gain your sanity back.
I can hear you all now..."But people won't book with me if I am THAT much higher than my competition. I will lose more than 5 inspections in a month." Oh yeah? Have you tried it? People are interesting that way. Yes, you will lose the price shoppers (boo hoo!!) and some others. You will get some flack from some agents. So what?? ("At what price success...") Business goes in cycles. They may switch to another inspector for a while, but if you are truly offering the best service you can, they will be back.
Plus, there are many people out there who want the most expensive person in town...it adds value to them and to their house. Suddenly, it adds value to YOU! Even if they normally could not afford the most expensive, they suddenly want it. "He/she must be so great to be asking that much." I'm not kidding. It is a fact. Otherwise, car manufacturers would not sell any Cadillacs, Porsches or Lexus. Why pay more for a car...they all have 4 wheels, an engine and seats to sit on, right? Wrong. People buy expensive cars for the perceived value from themselves and others. The same can be true with home inspectors. Take a risk and see if it is true. Your wife and kids will thank you and your pocketbook will not suffer long term. If it doesn't work, you can always lower your fees back down and increase your inspections back to what they were. (Although I wouldn't recommend it! I would rather see you give specials that bring your fees back down to the old level "temporarily" / indefinitely.)
Well, I hope you have enjoyed this edition of the MMM and that you found something useful that you could take away from it. If not, then at least Michael benefited from a break this week and you can be happy for him that he didn't have to slave away on Father's Day on the MMM.
Next week, more of what you are used to....Michael will be back! Have a great week!
Shelly Leavitt - The "Company" in Michael Leavitt & Co Inspections, Inc.!
Last week's article on the SupraKey was very timely for me here in Utah. I had an Agent call me back this week as I was trying to schedule access for an Inspection. "Michael, we discussed Home Inspector access at our weekly office meeting and as the result of a recent State of Utah Division of Real Estate newsletter article we cannot allow you to be alone in the house and I just don't think I have 3 free hours on Monday morning to spend with you." Well that will floor you when you are not expecting it.
I remained pleasant knowing that the Agent was misinformed and I told her that this was the reason for the restricted access of the SupraKey system and that it had been a long time since I had to be babysat during an inspection. I then said that I would appreciate it if she notified the Sellers of my inspection Monday morning and that I would make some phone calls and straighten out the misinformation. She appreciated that and we hung up.
The newsletter article that the Agent was referring to actually had nothing to do with Home Inspectors. Instead, it had to do with a Selling Agent who opened up an occupied home via the keybox without notifying the Sellers and then left the Buyers inside the home alone. The Buyers did have an accepted offer, but when the Sellers came home and found the Buyers inside without their Agent present they were quite upset. The Agent was fined $250 and the story ran like wildfire through Northern Utah. The Agents made more of it than was actually intended.
I then proceeded to call our local Board of Realtors and the State Board of Realtors. I even found myself phoning the State of Utah Division of Real Estate to get to the bottom of the issue. Each of these entities was surprised at the overeaction of the Agents at the local Orem office and each said that they would try to clear up this miscommunication. The bottom line was this:
The recommendation to Home Inspectors was to becaome Affiliate Members of the Board of Realtors so that Restricted Access keycard priveleges can be obtained. Home Inspectors MUST always make sure that the Sellers are aware that they are coming. I asked if this had to be personal contact or whether the notification could be made via the Agents. I was told that Agent notification was acceptable, but that we as Home Inspectors better have good documentation of who agreed to notify who. I personally need to work on this because I know that there have been times that the Buyer's Agent has not told the Listing Agent that I was going to do the inspection because the home was vacant and keyboxed. In the future however I will be much clearer on the importance of the notification because I don't want to have my priveleges taken away. I also don't like it when I show up for an inspection and the Seller has no clue that I'm coming because the Listing Agent forgot to tell them.
Apparently I am the only one who has ever encountered the submersible combustion chamber water heater. Ken Ives urged me onward in my quest for discovery with this feedback.......
Michael, I have never seen one of these water heaters, but am interested in the assembled masses comments. Ken Ives - Sacramento, CA
I wish that the masses had some information, but they don't. Ron Cloyd shared some observations on the installation of the unit......
Hi Michael, Just waiting to finish the new deck cover with my young son who is visiting. (I haven't seen him for a year and one-half) We will be going fishing tomorrow for a few days.
A quick comment on your photo: 1. No flexible piping, 2. No earthquake strapping, 3. Not raised off the floor of the garage/workshop 18", 3. Gas pipe appears to be open at the floor below the four-way connection, 5. No drip pan which is a good idea if in living space and 6. Missing the cover plate at the heat chamber opening. Ron Cloyd - Klammath Falls, OR
Steve Dansby rarely lets us down and he responded.....
I have not seen this style of water heater. "Submerged Combustion Chamber" makes it sound as if the unit wraps around the heating chamber; it does not appear to do that.
I cannot see the upper one-third so I am assuming there is no earthquake strapping. (Maybe the crossed pipes act as a restraint?) ;-) The gas line running across the unit will require disassembly to replace in the future. No flex line installed. Dissimilar pipes used (some jurisdictions do not allow for galvanized as a gas supply line). Unable to detect an installed shutoff valve. Was the room properly vented? Concrete floors can react with some metals which can cause premature deterioration.
I apologize for not responding to last week's "Photo Challenge". I, frankly, was unable to see what the camera (you) had seen at the site. The place appeared to be under construction. Steve E. Dansby - Portola, CA
Jim Corbin also rarely misses a chance to enlighten us with his Mechanical Engineering background.......
Hi Michael, Not sure what happened last week, but I recall typing something up...I guess a "senior moment attack" occurred and I don't recall which button I pushed. Could have been the wrong one.
I have not seen this type of water heater up here. From the name, I can only surmise that the combustion chamber is "surrounded" by water rather than the flame on the bottom of the tank like the flame on the bottom of a fry pan. The gas inlet piping system appears to be open-ended at the drip leg. I've not seen a "cross fitting" used in gas piping. The cross also appears to be copper and the gas piping galvanized. The venting at the door is missing (it appears that the installation is in a closet). No flex line is used, however, I can just barely see a flex line to the lower left. Hope your days are good...probably hot, too. We are still in rain with occasional sun breaks. Have a good day! Jim Corbin - Bow, WA
It is interesting how the camera can fool you. I read the responses to the installation and here are some interesting misidentifcations:
The following are observations that I found interesting and accurate:
I wish to thank those of you that responded to the Photo Challenge. I admit that it can be very difficult to figure out what the photographer is attempting to get across. I also urge each of you to become a Photo Challenge entrant. Those of you with digital cameras should be snapping pictures of the oddities and forwarding them along to me.
I was frustrated that more of you didn't have any information on this unit so I went to the internet myself. Here is what I know for sure...... The submerged combustion chamber must have been a fluke because it is no longer in the American/Mor-Flo product line. While searching the internet for more information on American/Mor-Flo submerged combustion chambers I stumbled across an interesting CPSC recall from 1996......
FOR IMMEDIATE RELEASE............ September 25, 1996 ............................... Release # 96-191
WASHINGTON, D.C. - In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Mor-Flo Industries Inc., doing business as the American Water Heater Group of Johnson City, Tenn., is announcing a voluntary recall program to repair approximately 6,500 LP Polaris Comfort Systems combination water heaters and home heating systems. Under certain circumstances, fuel gas may ignite explosively, causing property damage or injury.
The American Water Heater Group is aware of 104 incidents of heater damage and three incidents in which property damage extended beyond the heater. No injuries have been reported.
This retrofit involves Polaris Comfort Systems water heaters with the following model numbers:
PR34LPGV, PR50LPGV, PR34LPGFV, PR50LPGFV, PC100-34LPGV, PC100-50LPGV, PBG102-34S100-2P, PBG102-50T100-2P, PBCG32-34S100-2P, PBCG32-50S100-2P, PBCG52-34S100-2P, PBCG52-50S100-2P, DVPB35LPGV, PVG-34S100-2P, The model numbers are located on an identification/data plate on the front center of the exterior of the heater, about three feet above the floor.
Heating and cooling contractors sold the heaters nationwide from 1985 to July 1996 for about $2,200.
Consumers should immediately call the American Water Heater Group at (800) 456-9805 or write to the company's Product Services and Support Group at P.O. Box 1597, Johnson City, Tenn. 37605. The company will arrange installation of a free safety upgrade kit. For more information, consumers should call American Water Heater Group.
Then I stumbled onto this leaking shower pan advice from a Master Plumber.......
QUESTION: I just realized that somewhere around the shower is leaking. How can I determine if it is the shower pan, the supply line or if its caused by the worn out shower door seal?
ANSWER: The Key to finding this leak is as follows:
One of the following above should pinpoint the problem. If all else fails, try putting the hose down the drain a few inches to check for a possible separation of the existing drain piping.
I latched onto this testing procedure because it was authored by a Master Plumber and it will help me to better explain to my clients how involved the testing of a shower pan can be.
This week's AII™ Photo Challenge is another multi-photo edition. The home is a 1953 with numerous expensive upgrades. Photo 1 shows the very old bracing from the original small landing deck at the back door. Photo 2 shows a different angle and reveals the new longer floor joists that are sistered onto the original joists. Do you see anything out of whack???
"What are your observations?"
Your Name:
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