Business Law #2
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I own a home inspection company and belong to a professional business organization that promotes quality home inspection endeavors.
At a meeting, several members discuss pricing (our charges to customers) and how prices have been dropping as a result of increased competition. Our chapter of this organization is nationally affiliated and we require routine training and internal certification. Our competition is not part of a nationally recognized group and they have no certification requirements. The people who start this conversation want to highlight our credentials but they also want to do something that pulls business away from the “low-ballers”.
The discussion turns to recommending that all of us offer the same pricing structure. The purpose is to lessen the distinction between our chapter membership and to try and shut out the less qaulified and less prestigous home inspectors.
The key leaders in this discussion talk about how, “if we stick together” we can once again dominate the home inspection industry in our town.
I said that my prices, although different from anyone else at this meeting (my prices are historically lower by 10%), are fair and that I feel it is important to additionally give discounts for single parents, veterans, nurses, firefighters, senior citizens and law enforement. I do my inspections professionally and am highly regarded by my clients. Plus, I prepare a typed report that includes photographs and specific notes which are neatly bound in a comprehensive report. As a matter of fact, the value of my inspections are higher (and less expensive) than the other members of the group I belong to.
Does anything jump out at you in regards to this conversation? If you were a member of this organization and heard this conversation, and you know about consumer law, what would you say to the people discussing our pricing?
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