Growing your Home Inspection Business

So you’re Ready to Grow your Home Inspection Business?

Starting off the Traditional Way

Many Home Inspectors start off slow. Almost all of them follow the same path:

  1. Get the licence and insurance
  2. Register a company
  3. Get a logo and a home inspection kit
  4. Brand your car
  5. Hope someone calls

This is the 5 steps most home inspectors follow. It should be no surprise that they find difficulty acquiring clients in the beginning.

The idea is that after you get a few clients they would refer their friends to you when the time comes. That is a very slow way to build a business. To grow your business you need a lead generator that feeds the leads into a sales funnel. In the sales funnel you need a process to maximize your conversion rate. Turn these leads into customers. There are different ways of doing this but today I will talk about the way you can target the right audience and why that matters.

Focus on the Right Audience

This idea was first shared with me with a Marketing Guru based right here in Edmonton. He approached a startup I was working at offering his services for $2000 per day of consultation or becoming the VP of Marketing. He called this idea the “Temperature Theory of Marketing” it is as follows:

In any service that you are offering (including home inspection) all the people in your market fall on a scale. Just imagine a simple triangle like the one below.

 

At the top of the triangle there are only a few people and as you go down it gets wider with more people respectively. If you are in a city like Edmonton with 1 million people then all the people in this triangle add up to 1 million. Different services have a different triangle shape as the distribution of people from top to bottom will change.

The people at the top of the triangle are actively looking for what you have to offer. They are few, but they are also the ones that cost you the least to acquire and are your most valuable to acquire. The higher up a person is in this triangle the more they are searching for the service you have to offer. It would cost you a lot less to acquire this customer than someone at the base of this triangle. In addition, these people at the top are the ones that will spend the most money on your services.

What does this mean?

So, we briefly talked about the “Temperature Theory of Marketing” but what does this mean for Home Inspectors? Home Inspectors are following the traditional way of marketing, the traditional way focuses on everyone. When a Home Inspector brands their car and drives around the city, the message is getting splashed around to everyone. If 1000 people see the car in a day it’s highly likely that 99% of the people are “cold customers”. “Cold Customers” are the people at the base of the triangle that have little interest in home inspection at the moment. Same goes for distributing flyers to a neighborhood or sending out a radio or tv ad. The message simply splashes everyone and the business doesn’t realize any significant increase in business. The Return on Investment (ROI) is simply too low. It would be a lot more useful to spend less and target a smaller audience but have that audience composed of 99% “Hot Customers”. “Hot Customers” are the best customer type you can have, these are the people at the top of the triangle. Complement this with good branding and you will reap many rewards.

So now what?

Over the next few posts I will talk about what exactly is ROI and how do we measure it? I will also do a post on how you can target the right audience and get those “Hot Customers” all at the lowest Customer Acquisition Price.

Read on and learn how you can Grow your Home Inspection Business!

 

Your Edmonton Home Inspections Team

 

 

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Do I need a Home Inspection?

Absolutely. You’re not just buying a home to relax in, you’re also buying any problems that come with it in the walls, crawl space, or attic. Getting a home inspection is your chance to avoid those problems or, at a minimum, negotiate with the seller to pay for repairs. For a detailed guide to buying a house see our article “Buying a House in Edmonton”.

A typical inspection will cover everything from the roof to the foundation. In between, the inspector will also cover every major house system (plumbing, electrical, heating, septic,  etc.). Most also include tests for water safety and exterior. Usually Radon is not included in a standard home inspection, thermal imaging on the other hand is included in the standard package for some companies. A good inspection costs about $400-$500 and takes 1 to 3 hours (for a detailed look at Home Inspection Cost in Edmonton see our article “How much does a Home Inspection Cost in Edmonton?”). The cost varies depending on the size and age of the house as well as the company. Skipping inspections on new properties is not advised since despite it being new it doesn’t mean it’s flawless.

Given that the average home price in Edmonton is roughly $400,000, an investment in home inspection dwarfs in comparison. By having a home inspection you are ensuring that one of the largest investments in your life is in good condition. Avoiding this step could lead to surprises that end up costing you a lot to fix.

After you receive the findings report from your home inspector, review it and see if there are any deal breakers. In case there are defects, ask the seller to pay for repairs or negotiate a better price. Many sellers also get a pre-sale home inspection to know what to expect from the buyer’s side. They then go on to fix most of the issues they discover.

If you are considering buying a house, request a quote today and get a call from a professional home inspector. Remember, if you are buying your largest investment yet get in touch and get the peace of mind you deserve.

Your Edmonton Home Inspections Team

If you have any questions shoot us an email at youredmontonhomeinspections@gmail.com we’d love to talk!

 

 

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