Steven L. Smith, Bellingham, WA Home Inspector (King of the House)

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Does The Discount Discount Your Confidence?

I was driving away from a re-inspection today and I saw a little trailer with ladders and equipment attached.

Now that you have seen the view from my vantage point, let's take a look at the sign or billboard.

I know that successful marketing is often fueled by discounts, especially at department stores and super markets where we might get name brands at discount prices. Heck, even some local dentists advertise discounts and, early in my career, I used a few modest discount coupons. But when I see a 50% discount for services that require hard labor, that does not instill confidence or a desire in me to buy.

It could be wrong thinking on my part, but I worry that a person advertising a service at 50% off is cutting corners. We consumers like discounts but I think that many of us get nervous about committing to what seems to be way too good of a deal. 

In my view, this discount ad does not make me want to buy. It has the opposite effect and it discounts my confidence in the service provider. What is your take on this?

Thanks for stopping by,

Steven L. Smith

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Comments

Would that most had your point of view!

People think that such discounts have nothing to do with the final product.  We inspectors see that mistaken thinking every day!

Posted by Jay Markanich - Northern VA Home Inspector (Jay Markanich Real Estate Inspections, LLC) about 2 years ago

Jay,

I can deal with discounts, especially when some businesses are starting up or hurting, but once it gets to be more than a small percentage or amount, then the alarms go off. It also seems like desperation. On the other hand, maybe the guy charges double anyone else. In that context it means little.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Hey, this is a good post!  I give discounts to my clients when I as the listing agent sell their home.....I am not a discount house.  I have parted friends with more than one potential listings owner...I have learned that the business will be there later when the seller is a bit more motivated from dealing with discounters....

Posted by John Howard GRI Mountain Home, Arkansas 870-404-3614 (Century 21 LeMac Realty) about 2 years ago

John,

Glad you liked it. I saw that little trailer and it got me to thinking. I even went home and got my camera.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Marketing is tricky. 

It looks like a startup/small business trying to offer a discount to get his name out there.

It is hard to know what marketing is going to work, when you are relatively new.   Sometimes it backfires and does the exact opposite of your intent. 

Jen Wing 

Posted by Jarrett & Jen & James Wing (Wing's Inspection Services) about 2 years ago

Hi Steven-

I don't know that I would do business with someone like this.  In general, you get what you pay for...

--Sara

Posted by iTexas Realty Co. about 2 years ago

Steven, my thoughts are.... Nutsy's cousin started a painting business?

No confindance vote here...

Posted by Andrea Swiedler - Swiedler & Adams - New Milford, Litchfield CT Real Estate (Prudential Connecticut Realty, Litchfield County Real Estate) about 2 years ago

Andrea,

Nutsy has never offerered such a deep discount...not once. He has gone pretty low competing with Charlie Bee, but never there.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Jenn, that is likely to be true.

Sara, Me too.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Steve, my immediate reaction to any discount is to think about all the guy's previous jobs where he must have been over charging if he can now afford to do it for half as much.  How is the consumer to know that he has come down to a realistic price even now?

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Charlie,

You are such a sceptic that it is no wonder that Nutsy disagrees so often.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Probably a lot like the way Nutsy would disagree with my digestive system.

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Steven, you got me all wrong. I would never imply Nutsy would stoop so low... I thought perhaps it was a cousin, you know, on the bad side of the family....

No matter what his detractors may say MR CHARLES AND KATE, and sometimes MR JAMES for instance, I believe that if he were closer I would recommend Nutsy for jobs here. But not that lowlife cousin of his on his fathers side of the family.... never....

Posted by Andrea Swiedler - Swiedler & Adams - New Milford, Litchfield CT Real Estate (Prudential Connecticut Realty, Litchfield County Real Estate) about 2 years ago

polly wants a cracker

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Andrea,

The thoroughness of Nutsy's work has Charlie's knees knocking like dice in a cup.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Steven, all they have to do is price it twice as high and offer half off.  Maybe it's a business trick. 

Posted by Barbara S. Duncan, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage) about 2 years ago

I wondered what that noise was----I was afraid it was my teeth again

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Charlie,

Actually Nutsy recorded your knocking knees and played the recording for me. Right here.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Pretty dang weak compared to the real thing I gotta say

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Steven - perhaps the discount is because the trailer is pulled by manpower not horse power

Posted by Kathy Clulow ASP® SRES® Uxbridge Ontario Real Estate (RE/MAX All-Stars Realty Inc. Brokerage) about 2 years ago

That small cart would make me think that this person is possibly starting out and the discount is to entice customers. I might try them out on a small job but not a big one.

Posted by Teral McDowell (KW® Central-Murphy) about 2 years ago

Teral,

That sounds like a smart idea and gives the benefit of the doubt.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

sluggo

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

Mr Charles,

The boss might not appreciate your slopping up this wonderful post with stupid photos of animals.

Nutsy S. Wallenda

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Posted by Charles Buell, Seattle Home Inspector (Charles Buell Inspections.com) about 2 years ago

H-m-m-m! If he marked the price up by 80% and then gave a 50% discount, then gave another discount because it was Tuesday, then they might come in at a decent price. If you drop "the nut job's name" all deals are off...

Helping you help others live their American dream...

Posted by Michael Thornton - Nashville, TN area Home Inspector - 615.661.0297 (Complete Home Inspections, Inc.) about 2 years ago

With the new rules on lead based paint, 50% off will still be expensive!

Posted by Dennis Chamberlain, Eastern WA Home Inspections (Eastern WA Home Inspections, LLC) about 2 years ago

Dennis,

You have a point there all right.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

I would take 50% off Nutsy's hide and Charlie Bee can take the other 50%.

The chicken suit makes me hungry.

Posted by James Quarello - Connecticut Home Inspector (JRV Home Inspection Services, LLC) about 2 years ago

Mr James,

If you are ever able to afford a rooster outfit, so you looks as good as me, we might start paying some attention to your ramblings.

Nutsy

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

Hey Steve,

I have to agree with you. When I see things like that I start to wonder what kind of service I will get.

Hi to Nutsy!

Posted by Tony Orefice Realtor/Kannapolis NC,Concord NC (Wilkinson and Associates/www.TonyOreficeRealtor.com) about 2 years ago

Steve, I'd never respond to this type of marketing.  That's way to little money to charge, at least if you're any good at what you do.

Posted by Patricia Kennedy (Evers & Company Realtors) about 2 years ago

Good morning Steve,

I firmly believe you get what you pay for. I like personal referrals and a professional image from trades I recommend.

Posted by Dorie Dillard Realtor® Canyon Creek NW Austin TX homes for sale (Coldwell Banker United Realtors) about 2 years ago

I always figure they mean 50% off after they jack the price up 100%.  You get what you pay for.

Posted by Cynthia Larsen - Sonoma County Real Estate Broker (707-332-2560 www.safehavenrealty.com) about 2 years ago

Thanks to Pat for putting this in her blogs of the week to read. Glad to see it revisited.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

You know the saying...you get what you pay for!!! There is no free lunch. 

Posted by Betsy Schuman Dodek SearchPotomacHomes.com (Washington Fine Properties - Washington DC Area Real Estate) about 2 years ago

50% is such a misnomer because you first have to know "50% off of what?"  Also, the 50% billboard may just be a way for the advertiser to get his phone to ring.  We do it all of the time with "FREE CMAs" and other information.

I do get your point and I agree that if this person builds his business by actually charging 50% off of all of his/her services, then I would question the qualify of what I might be getting.

Posted by Charita Cadenhead, Your Birmingham, AL Realtor® & Property Manager of Choice (Bham WIiRE Realty LLC ) about 2 years ago

How can you discount 50% for painting labor? Seems like someone just trying to get some quick cash by plunking down that trailer in an area hoping for some homeowners to happen upon the sign.  As you say, not me.

Posted by Lyn Sims - Schaumburg Homes (Schaumburg Real Estate - Northwest Suburbs - RE/MAX Suburban) about 2 years ago

Andrea,

Remember that you get what you pay for. Often time, it is a gimmick to get potential client to start a conversation. Or it could be someone is really desperate for work. Any income is better than no income.

Posted by Mike Yeo (3:16 team REALTY) about 2 years ago

I hate discounts at the supermarket deli & meat counter.  Usually means the food is about to spoil and they need to dump.  could be wrong, but that is the impression I get from that

Posted by Daniel J. Hunter (REALTOR®) about 2 years ago

Have you ever noticed that the folks who use "Discounts" as their main claim to fame usually end up having a short lived existance. They most probably don't have a grip on the big picture of what it actually costs them to do business.

Posted by Concord Real Estate about 2 years ago

Janet,

I believe that you have that right. Some minor promotional discounts are one thing but certainly not something a person should rely on.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) about 2 years ago

My first reaction is 50% off from what? From an overpriced quote?

Posted by Erica Ramus - Ramus Realty Group - Pottsville, PA about 2 years ago

Licensed? Bonded? Insured? Naaahhh..... but it's 1/2 off!!!!

Posted by Ellie Shorb (Coldwell Banker Residential Brokerage) about 2 years ago

It seems that the majority of us are not in tune with this type of promotion.

Posted by Steven L. Smith, Bellingham, Wa. Home Inspector (King of the House Home Inspection, Inc) almost 2 years ago

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