Marketing for Home InspectionMarketing for Home InspectionSpeaker: William A. Price, Attorney at Lawwpriceiit@yahoo.com, tel. (630)362-8840Speaker: William A. Price, Attorney at Lawwpriceiit@yahoo.com, tel. (630)362-8840

Defining Your MarketDefining Your Market

Markets the Association Can Reach

Markets You Can ReachMarkets Your Referral Sources Can

ReachNew Markets

Markets the Association Can Reach

Markets You Can ReachMarkets Your Referral Sources Can

ReachNew Markets

Association MarketingAssociation Marketing

Nonprofit Mailing Rates: 25 cents first class postage vs. 39 cents

Joint Marketing is deductible to each contributing member, as dues or as a marketing fee

Costs can be spread across many companies

Nonprofit Mailing Rates: 25 cents first class postage vs. 39 cents

Joint Marketing is deductible to each contributing member, as dues or as a marketing fee

Costs can be spread across many companies

Other Association’s Marketing

Other Association’s Marketing

Lawyer referral:

800 number and website, county bar associations and Illinois State Bar Association

Basic signup fee, plus a small referral fee for the first hour of service collected

Lawyer referral:

800 number and website, county bar associations and Illinois State Bar Association

Basic signup fee, plus a small referral fee for the first hour of service collected

Other Association’s Marketing

Other Association’s Marketing

Realtors:

Realtor’s Associations Websites: direct referral to product (homes)

Assocation advertising for profession’s image

Contracts designed to recover feesMembership fees cover costs

Realtors:

Realtor’s Associations Websites: direct referral to product (homes)

Assocation advertising for profession’s image

Contracts designed to recover feesMembership fees cover costs

Customer Group Marketing

Customer Group Marketing

AARP:

Provider signup for mention on AARP website ($600/lawyer)

Other “partnering” by transaction (VISA card percentage to AARP, etc…)

Monthly magazine advertisingProvider/advertising fees and

membership dues cover costs

AARP:

Provider signup for mention on AARP website ($600/lawyer)

Other “partnering” by transaction (VISA card percentage to AARP, etc…)

Monthly magazine advertisingProvider/advertising fees and

membership dues cover costs

Newspaper AdvertisingNewspaper Advertising

Group may cover costs individuals can’t pay: 20 marketing exposures needed

Chicago Tribune, $1500/insertionDaily Herald, Central DuPage,

$400/insertionPaddock Press, $3-500/insertion“Homes For Sale/Farms For Sale”

Group may cover costs individuals can’t pay: 20 marketing exposures needed

Chicago Tribune, $1500/insertionDaily Herald, Central DuPage,

$400/insertionPaddock Press, $3-500/insertion“Homes For Sale/Farms For Sale”

Cable TV AdvertisingCable TV Advertising

1. Regional and Sub-Regional Coverage Available: Infomercials!

2. Cost/Insertion similar to Tribune3. Community Cable studios/COD

students and other college production facilities

4. 800 number for immediate response/measurement

1. Regional and Sub-Regional Coverage Available: Infomercials!

2. Cost/Insertion similar to Tribune3. Community Cable studios/COD

students and other college production facilities

4. 800 number for immediate response/measurement

WebsitesWebsites

Mention the site in all advertisingUse “pay-per-click” to increase

traffic: $7,000 at 10 cents/click = 70,000 visitors for your keyword. Use Yahoo/Overture keyword rankings to pick words.

Have downloadable content, free and paid

Cross-link to increase site rankings

Mention the site in all advertisingUse “pay-per-click” to increase

traffic: $7,000 at 10 cents/click = 70,000 visitors for your keyword. Use Yahoo/Overture keyword rankings to pick words.

Have downloadable content, free and paid

Cross-link to increase site rankings

Association vs. IndividualAssociation vs. Individual

Expensive venues Generic referrals Extended

production efforts (infomercials, brochures)

Referral websites and phone services

Expensive venues Generic referrals Extended

production efforts (infomercials, brochures)

Referral websites and phone services

Guerilla Marketing

Individual Referral Relationships

Past Customer Marketing

Contractor and other Business Partnering

Guerilla Marketing

Individual Referral Relationships

Past Customer Marketing

Contractor and other Business Partnering

Guerilla MarketingGuerilla Marketing

Uses Very Little MoneyGoes Around Points Of ResistanceMakes The Population Your Friend

and Hiding Place

Uses Very Little MoneyGoes Around Points Of ResistanceMakes The Population Your Friend

and Hiding Place

Guerilla TacticsGuerilla Tactics

No-postage distribution: Neighborhood leafleting, “welcome wagon” distribution for post-purchase re-inspection and repair, community website mentions and referrals, public library flyers for educational events, homeowner’s association distribution (email, flyer, and direct mail – offer a group discount!)

No-postage distribution: Neighborhood leafleting, “welcome wagon” distribution for post-purchase re-inspection and repair, community website mentions and referrals, public library flyers for educational events, homeowner’s association distribution (email, flyer, and direct mail – offer a group discount!)

Referral RelationshipsReferral Relationships

Realtor Economics: Volume, not quality

Anti-kickback rules mean no direct payment for referrals

Realtor/Lawyer/Accountant/Other Trusted Intermediary (?Insurance Agents?) referrals possible

Rule of Reciprocity: how can you help them? Why are you the best source?

Realtor Economics: Volume, not quality

Anti-kickback rules mean no direct payment for referrals

Realtor/Lawyer/Accountant/Other Trusted Intermediary (?Insurance Agents?) referrals possible

Rule of Reciprocity: how can you help them? Why are you the best source?

Past CustomersPast Customers

Cheapest cost of customer acquisition (10x less than new customer)

Reminders at least quarterlyPossibilities: Newsletter, e-

newsletter (cheapest), discount coupons (transferable), non-sale services (energy audits, annual maintenance checklist/audits, rehab estimates…)

Cheapest cost of customer acquisition (10x less than new customer)

Reminders at least quarterlyPossibilities: Newsletter, e-

newsletter (cheapest), discount coupons (transferable), non-sale services (energy audits, annual maintenance checklist/audits, rehab estimates…)

PartneringPartnering

Reliable vendors are always at a premium

Note general contractor services/pricing: 10% of project costs, need insurance, licensing?

Logical add-on to inspectionsPossibilities: plumbers, drywall,

electrical, HV/AC, insurance, etc…

Reliable vendors are always at a premium

Note general contractor services/pricing: 10% of project costs, need insurance, licensing?

Logical add-on to inspectionsPossibilities: plumbers, drywall,

electrical, HV/AC, insurance, etc…

Know Your Value ChainKnow Your Value Chain

SERVING SELLERS:Realtor creates customerMortgage bank qualifies customerLawyers collect the funds

SERVING SELLERS:Realtor creates customerMortgage bank qualifies customerLawyers collect the funds

Know Your Value ChainKnow Your Value Chain

SERVING BUYERS:Realtor creates customer Inspectors qualify propertiesLawyers verify ownership and funding

details, are gatekeepers for funds Insurance, utilities, subcontractors,

cleaners, etc… may be needed by new homeowner

You could create the customer for them

SERVING BUYERS:Realtor creates customer Inspectors qualify propertiesLawyers verify ownership and funding

details, are gatekeepers for funds Insurance, utilities, subcontractors,

cleaners, etc… may be needed by new homeowner

You could create the customer for them

Business Planning IssuesBusiness Planning Issues

The Idea: What do you sell? What else could you sell?

The Market: Who do you sell to, and who else sells the same, or alternative services? Is this market growing, or shrinking?

The Idea: What do you sell? What else could you sell?

The Market: Who do you sell to, and who else sells the same, or alternative services? Is this market growing, or shrinking?

The Team: Why are you/is this team the best/cheapest/fast-est in the market?

The Plan: How do you acquire customers and deliver products and services?

The Team: Why are you/is this team the best/cheapest/fast-est in the market?

The Plan: How do you acquire customers and deliver products and services?

The IdeaThe Idea

What Do You Sell?

Peace of Mind: financial and personal safety. Not drills, holes….

What Else Could You Sell?

Financial products (insurance), safety products (build-out, CO monitors, Radon monitors, baby monitors, etc…)

What Do You Sell?

Peace of Mind: financial and personal safety. Not drills, holes….

What Else Could You Sell?

Financial products (insurance), safety products (build-out, CO monitors, Radon monitors, baby monitors, etc…)

The MarketThe Market

Pick An Addressable NicheThis means one you can afford to

communicate with 20 times this year

Pick An Addressable NicheThis means one you can afford to

communicate with 20 times this year

Market SizeMarket Size

How many of your services/products are bought each year in your market?

What percent of these are you capturing?

What can you/your association do to increase the size of the market?

Is the market growing, or shrinking?What other related markets are there?

How many of your services/products are bought each year in your market?

What percent of these are you capturing?

What can you/your association do to increase the size of the market?

Is the market growing, or shrinking?What other related markets are there?

Related MarketsRelated Markets

Annual inspections: could insurance companies or mortgage lenders require inspections?

Would apartment owners or absentee landlords buy your inspection/contractor referral and supervision services?

Can you sell related products?

Annual inspections: could insurance companies or mortgage lenders require inspections?

Would apartment owners or absentee landlords buy your inspection/contractor referral and supervision services?

Can you sell related products?

Market CompetitionMarket Competition

Who are your competitors?

Busy realtors, who refer at lowest cost to get the job finished.

Apathetic customers, who don’t know what an inspection is worth

Ignorant lawyers, who don’t bring you in immediately

Other inspectors

Who are your competitors?

Busy realtors, who refer at lowest cost to get the job finished.

Apathetic customers, who don’t know what an inspection is worth

Ignorant lawyers, who don’t bring you in immediately

Other inspectors

The TeamThe Team

Identify All Business Functions NeededFind Out Which You Don’t/Can’t DoHire/Retain People To Do Those JobsRemember the nondelegable

functions: sales, team member recruitment, financial and personal responsibility for results and process

Is your team the best in the world?

Identify All Business Functions NeededFind Out Which You Don’t/Can’t DoHire/Retain People To Do Those JobsRemember the nondelegable

functions: sales, team member recruitment, financial and personal responsibility for results and process

Is your team the best in the world?

The PlanThe Plan

90 day plans are reasonable#1 cause of business failure:

running out of money!80% of money/time: acquiring

customers20% of money/time: service,

billing, and followup on contracted work

90 day plans are reasonable#1 cause of business failure:

running out of money!80% of money/time: acquiring

customers20% of money/time: service,

billing, and followup on contracted work

What Are Your Milestones?What Are Your Milestones?

12 referral sources, who each can give me 12 customers this year

24 guerilla, association, and other marketing contacts to my market this year

36+ hours/week marketing, 12 inspecting

12 referral sources, who each can give me 12 customers this year

24 guerilla, association, and other marketing contacts to my market this year

36+ hours/week marketing, 12 inspecting

Rate Setting When The basic service has become a commodity

Rate Setting When The basic service has become a commodity

Two-sided markets: a free service to bring people others need in, and a charge to others who need to reach them. (E.g., add-on monitor sales.)

Value-added services (Contracting) Additional services for customers

(energy, remodeling estimates, etc…) Disruptive innovations (10x faster,

better, cheaper than others in the value chain.)

Two-sided markets: a free service to bring people others need in, and a charge to others who need to reach them. (E.g., add-on monitor sales.)

Value-added services (Contracting) Additional services for customers

(energy, remodeling estimates, etc…) Disruptive innovations (10x faster,

better, cheaper than others in the value chain.)

Legal issuesLegal issues

Pre-Closing Issues

Material defect? Discussion vs.

Counter-Offer Time to finish

inspection/work Amount of & cost of

escrows Payment at closing

Pre-Closing Issues

Material defect? Discussion vs.

Counter-Offer Time to finish

inspection/work Amount of & cost of

escrows Payment at closing

Post-Closing Issues

Services liability: What would a reasonable expert do?

Post-closing repairs: budget, contracts, timing, payment methods

Annual inspection and other follow-on services

Post-Closing Issues

Services liability: What would a reasonable expert do?

Post-closing repairs: budget, contracts, timing, payment methods

Annual inspection and other follow-on services

Defects and CasualtiesDefects and Casualties

Material defect: contract breach, with DuPage contract remedies

Casualties: 10% or more casualty required to let buyer out of the contract (DuPage contract): inspection could verify

Material defect: contract breach, with DuPage contract remedies

Casualties: 10% or more casualty required to let buyer out of the contract (DuPage contract): inspection could verify

Time to finish inspection/workTime to finish

inspection/work Inspection is controllableSubcontractors and other work

before closing is difficultMake sure closing is extended, or

you and others may not be paid!Remember: mechanic’s lien rights

apply to you

Inspection is controllableSubcontractors and other work

before closing is difficultMake sure closing is extended, or

you and others may not be paid!Remember: mechanic’s lien rights

apply to you

EscrowsEscrows

Title company or lawyers hold the money

$175-250 fee to do oneEscrow conditions strictly

enforced: completion of work, reasonable satisfaction, release of liens, only then release of funds

Title company or lawyers hold the money

$175-250 fee to do oneEscrow conditions strictly

enforced: completion of work, reasonable satisfaction, release of liens, only then release of funds

Payment at ClosingPayment at Closing

Know when the closing will beKnow who your customer is: the

seller, the buyer? Who pays you? The seller’s

lawyer’s secretary, if they control title

Make sure you are paid before you release your lien

Consider collecting at closing, or on closing day

Know when the closing will beKnow who your customer is: the

seller, the buyer? Who pays you? The seller’s

lawyer’s secretary, if they control title

Make sure you are paid before you release your lien

Consider collecting at closing, or on closing day

Expert LiabilityExpert Liability

Standard: What would a reasonable expert do?

Protection: What disclosures were given to the buyer?

Insurance: non-wilful and not grossly negligent professional errors and omissions: cost of defense, cost of judgment

Remember California: mudslides, other outside conditions

Contract may limit customer remedies: strictly construed

Standard: What would a reasonable expert do?

Protection: What disclosures were given to the buyer?

Insurance: non-wilful and not grossly negligent professional errors and omissions: cost of defense, cost of judgment

Remember California: mudslides, other outside conditions

Contract may limit customer remedies: strictly construed

Post-Closing WorkPost-Closing Work

Pick your role: general contractor, or owner’s representative?

Separate contracts are needed.Payment for services (percent of

job, or time on task) needed.Reliable subcontractors needed.Time pressure is lower, budgets

are tighter.

Pick your role: general contractor, or owner’s representative?

Separate contracts are needed.Payment for services (percent of

job, or time on task) needed.Reliable subcontractors needed.Time pressure is lower, budgets

are tighter.

Annual Inspection and Other Follow-On Services and

Products

Annual Inspection and Other Follow-On Services and

ProductsDefine the service by contract:

don’t be an insurerUpdate services to meet new

dangers (radon, mold, gas, floods, etc…)

Verify product liability/warranty coverage for manufactured products, have retailer functions covered in insurance

Note sales tax payment and reports

Define the service by contract: don’t be an insurer

Update services to meet new dangers (radon, mold, gas, floods, etc…)

Verify product liability/warranty coverage for manufactured products, have retailer functions covered in insurance

Note sales tax payment and reports

Conclusion:Conclusion:Any Questions? Any Questions?