The Marketing Plan Instructed by Bill Erickson
Day 2: • A) ClassPresentations • B) Get Started Binder • 1. Marketing • Implementation • 2. Web resources • 3. E-mail marketing • resources • 4. To do lists • Day 1: • A) Marketing Plan Presentation • 1. Services/Customers/ • Promotions • B) Selling 101 • 1.One-on-one selling skills • 2. Open House selling • role play • C) Referral Source Marketing • 1. Promotions • 2. Networking/marketing to • with agents Marketing Agenda
A Solid Foundation Your Marketing Plan should include the following six basic steps: 1)Your services 2)Customer segments for the services you perform 3)Competitor analysis 4)Sales/promotion/advertising methods 5)Set goals 6)Evaluate your progress month by month and adjust your marketing plan
Why Have a Marketing Plan? • Learn about your customers and referral sources • Learn about your competitors • Organizes your thoughts and actions • Leads to improvements in your services
Competitor Analysis Your Service Features/Benefits Your Competitors’ Features/Benefits • Computerized reporting/ Time saved/ Ease of use • Training/ Confidence/Reduced liability • State of the art equipment/Thorough inspection • Insured/ Confidence/Peace of mind • Availability/ Convenience/ Simplicity • Re-inspection service/ Peace of mind/ Value • Moderate pricing/ Value Their reputation Strengths/weaknesses ____________ ____________ ____________ ____________ ____________
“Well-rounded” Diversified Business • More stable business • More growth for your business • More valuable business Provide multiple services to multiple market segments:Residential, commercial, buyers, sellers, banks, etc.
As primary residence • Second home • Investor (rental or to flip or resell) • Auction home. Multiple potential buyers/inspection clients Home Buyer Inspections
Home Seller Inspections • “Pre-listing Inspections” • Sells homes faster • Brings top dollar
Prelisting Inspections • A listing/marketing tool for agents • Avoids last minute renegotiations • More popular in a buyer’s market when houses are harder to sell • Agents traditionally recommend for older homes or for sellers needing to sell quickly • Promote to agents
(Progress/Percentage completion) • Residential & Commercial • For Banks • National draw inspection companies • Report forms available on the Web library or provided by the bank or company • Market to banks and sign up with national companies (NPI List) Draw Inspections
New Construction Final and/or Phase Inspections (Not percentage completion but quality) For new home buyers (and occasionally for builders/agents) Market to agents/Web advertising
“11th month” inspections • For new home owners. All components/workmanship • Regular home inspection, regular NPI report. (Ask homeowner for a list of concerns) • Promote through direct mail and referrals. Need list or door hangers Builder’s Warranty Inspections
NPI’s Centralized Direct Mail Program • Mailed from our mail shop in Omaha • Pre-printed door hangers for you to distribute. • Neighborhood referrals from your recent customers. Leave them brochures, coupons or cards to pass out. Offer a $15 gift card referral reward per customer they refer. • Optional postcards Builder’s Warranty Inspections
Builder’s Warranty Mailings Direct Mail Package: Envelope-double window Personalized letter Builder Warranty brochure Testimonials $25 off coupon
Builder’s Warranty Mailings Builder’s Warranty Direct Mail Result (Customary to discount the inspection fee with a $25 coupon.) Average Results (1 – 3%) based on $250 fee If mail 200 per month, est. 2 - 6 inspections Total revenue$ 500 to 1,500 Total expense $.70 ea.-140 -140 Total profit$ 360 to $1,360
Commercial Property Inspections Most common: multi-family dwellings for investors (Apt. bldg’s., duplexes, etc.) Alsosmall office buildings, warehouses, light industrial For Investors (pre-offer or pre-closing) - your client Commonly required or recommended by lenders (Pre-closing). Local and national clients Also for commercial clients (corporations) who own or lease. Pre-occupancy and exit inspections. Serve either the owner or the tenant
Commercial Property Inspections Marketing Your Commercial Property Inspection Service Promote through Referral Marketing to: Banks Residential agents (for clients purchasing investment property—e.g. multi-family) and advertising (internet) Commercial real estate brokers Real estate attorneys Advertising (internet and yellow pages) * Many commercial clients find NPI /GPI inspectors on the Web
Your Services Employee Relocation Inspections Most Relo companies will require you to submit the ERC report format Usually inspecting homes at point of origin, not destination Estimate repair costs used to determine home value Promote by contacting the Relo companies on the NPI/GPI Field Service list Most companies pay $185-200 to start plus add-ons
Your Services Field Services Industry Inspections Residential Commercial Field Service Companies act as a clearinghouse for inspections and related field services for insurance companies and mortgage servicing companies, lenders/banks and investors. Promote by contacting the companies on the NPI/GPI Field Service list in the Web Library.
Examples of Field Services Ordered by • National Field Service Organizations Your Services • Quality Control inspections • Collateral inspections (usually equipment) • Personal Interviews • Disaster inspections • Mobile Notary Service • Merchant Site Credit Card • Authorization • Various Property Assessment/ • Condition Reports • Insurance Loss Draft inspections • Insurance Risk Assessment • inspections • Occupancy Verification • Mobile Home inspections • REO Occupancy Status • inspections
Property Preservation Tasks: • Window replacement board up • Lock change • Lawn service • Debris removal • Pool covering • Water pumping • Bids/Estimates • Winterization Your Services
NPI/GPI Field Service List * List Can Be Found in Library
HUD Inspections HUD Multi-family Dwelling “REAC/PASS” Inspections Need to become certified by HUD Use handheld computer with HUD software Walk-through apartment inspections One Week HUD training in Washington, D.C Visit www.hud.gov
Federal Housing Administration What You Should Know About FHA 1. FHA is part of HUD. There is no “FHA general home inspection” required on a normal home sale, only an FHA appraisal. You may perform a normal home inspection using the NPI form. FHA can finance the cost of the inspection in the mortgage. 2. Refer to the FHA form, “For Your Protection Get AnInspection”. Because FHA appraisers do “flag” certain deficiencies of the property, some people may think it is an inspection, but it is not a thorough inspection nor to ASHI standards.
What You Should Know About FHA, cont’d Federal Housing Administration 3.Lenders must have HUD form, OMB No. 2502-0189 “Compliance Inspection Report” completed to verify that the deficiencies have been corrected. A HUD Approved FeeInspectoris required to sign this form to assure repairs are completed. Under the new rules, it can be signed after the loan closes. Exceptions: There are some inspections on HUD homes, rural properties, and manufactured homes where FHA will order an inspection.(See NPI list for SPI’s (Special Property Inspections and also Mobile home foundation inspections!)
HUD 203(k) HUD 203(k) Program Consultant: Property rehab/loan program requiring a HUD 203(k)consultant/inspector to assist with monitoring the construction including draw inspections where repairs are over $35,000. To become a 203(k) consultant you need training (seminar) and a minimum of 3 year construction or inspection related experience.
Expert Witness Expert Witness Your expertise as a home inspector: To attorneys, for law suits, arbitration and mediation services. Charge a fee for your expert opinion. (Over phone, in court, etc.) Example: A homeowner sues their home builder for repairs for poor workmanship. Their attorney needs your expert opinion or testimony. .
Common Add On Services These vary by geographic area, licensing, local protocol, etc. Radon Monitoring Well potability test/Sampling Septic System inspection Pool/Spa Termite (WDI or WDO)
Other Specialized Services Infrared camera - “thermography” Scan for moisture, insulation, electrical problems. Add to home and commercial inspection services. Extra $50 common on home inspection. Also, simply able to book more because you employ this technology! Chimney, fireplace and flue inspections (In Canada - WETT). With or without fiber optics camera. Also, use camera for sewer line inspections or septic inspections. Wind storm certification inspections FL and Southeast—hurricanes. Energy conservation inspections -Audits on existing homes. Also, Energy Star rater training for new homes. Home Watch Service - Resort/second home markets primarily. Check/inspect periodically, etc. (See NPI/GPI list of inspection services and approximate fees)
Promoting Your Business • Describe Your Target Markets/ Customer Segments • Define your target markets in terms of customer segments: • Home Buyers • Home Sellers • Government Entities • Homebuilders • National Companies
Promoting Your Business Promotional Methods • Referral source marketing—one on one • Past customer marketing—newsletters • Networking via affiliate group meetings • Group presentations to referral sources, such as agents and end users/groups • Education sessions for real estate professionals, agents and lenders • Miscellaneous sales presentations
Referral Marketing Your Strategy is to have people of influence: 1) Refer their customers to you, or 2) Call you directly to schedule an inspection on behalf of their customer (Referred to as “Centers of influence”)
Referral Marketing Referral Marketing Keys: 1. Build relationships 2. Market by networking *Read networking books (see list of suggested books in text behind promotions power point in this manual)
Referral Marketing Establish goals/objectives for each type of referral source: Example: Objectives: 12 months: 8-10 agents 2 mortgage lenders 2 banks 4 national companies
Referral Marketing Develop objectives and tactics for each target group: Agents Mortgage Lenders Past Customers Real Estate Attorneys Commercial lenders at Banks (*See your Web Library for each target market as well as brochures)
Referral Marketing Networking is best Before contacting referral sources, identify contacts who can give you a “warm” introduction or permission to use their name (Make a list) Obtaining a warm intro to a referral source is always preferred over a cold call
Referral Marketing Referral marketing to: Agents (Realtors) Agent Facts: 1) Part of the formal job description of an agent is “arranging” or “coordinating” inspections on behalf of their client, the home buyer. They can’t do their job without good inspectors! 2) Not all agents are equal. Be selective in the agents you choose to market. Target the top 50%
Referral Marketing Referral marketing to: Agents (Realtors) Sell to their needs (See NPI’s Selling 101) Points of Differentiation/Advantage Insured/Protects agents High tech/Great report Free 6 Mo. Ltd. Warranty National company for training/Support Additional training/Credentials
Referral Marketing Referral Marketing to: Agents (Realtors) There are several “attitudes” most agents look for in a good inspector: - I put findings in perspective for the home’s age, neighborhood, etc. - I am a professional, and know how to discuss my concerns without alarming the home buyer. I explain that all deficiencies can be remedied. - My service is convenient - quick on-site reports with summary page of findings - easy to read. - I am responsive to calls before and after the inspection.
Education for Agents NPI Power Point Courses 1) “Home Inspection 101” for Real Estate Professionals” Great for “Lunch & Learn” sessions and in some states CEU credits. NPI is applying in many states. 2) Other Course: Exteriors, Environmental, Old Homes, Moisture, etc. Personally sell the office or sales manager on booking a class to be held at their realty office.
Referral Marketing Mortgage Lenders While Mortgage lenders don’t play the same pivotal role as agents in arranging inspections, they can refer some customers to you. Best to promote to lenders by networking to your agents, or at network meetings (e.g. BNI, Letip, Chamber).
Referral Marketing Your Past Customers Repeat business on their next home Ask them to refer their friends and family Organize contacts in “Outlook Contact Manager”
Referral Marketing Real Estate Attorneys Look for their specialty listings, mail intro Best to meet by networking
Referral Marketing Commercial lenders at Banks 1) Draw inspections on new home construction 2) Commercial mortgages 3) REOs (Real Estate Owned) bank foreclosures. Inspections and property preservation services.
Advertising to Consumers Internet: Your Web site at www.npiweb.com/inspector NPI promotes through SEO techniques and Google
Advertising to Consumers Promote your business online Google local providers (Listed above regular search results) Yahoo Local (top of regular search results) MSN Local ***FREE sign up with the above. See your back folder in this manual for instructions on signing up with directories.
Online Directories 1) www.homeinspections-usa.com(largest and most effective) $250/yr. (1st yr. $50-Discount with marketingcode “NPI”) 2) Inspector directory:www.inspectopia.com 3) See the NPI/GPI list of various other online directories such as superpages, etc. 3) AOL and Yahoo free yellow pages. You must submit.
Advertising on Internet • Ads on Google, Yahoo, MSN (PPC Pay per click). • Keyword driven -”Home, commercial Inspections, radon testing, etc.” • Drive visitors to your NPI Web site • Target your local area and those searching for inspectors in your area from out of area • NPI Marketing Dept. can help set up your campaigns
Advertising to Consumers Recommended Print Publications: 1. Yellow page directories 2. FSBO publications 3. Realtor Association Newsletters (targeted at agents) IMPORTANT - MANDATORY!!!!ALL OF YOUR PRINT ADS/FLIERS/COUPONS/E-BROCHURES AND ANY OTHER PRINTED MATERIALS DISTRIBUTED MUST INCLUDE THE PHRASE: “INDEPENDENTLY OWNED AND OPERATED”
Advertising to Consumers Tip: Consumers typically only respond to inspector’s ads after they have found a home and realize they need an inspector, not when they are searching for a home. NOTE:Be cautious of other “home for sale” publications as traditionally they haven’t produced business. Also avoid newspaper ads. However, if you run an ad, be sure to include a $25 or $50 coupon to compel the consumer to take action!