One of the problems I've had with the current marketing of home inventory service businesses is that the emphasis of the sellers of "business start-up systems" on getting people to purchase a "Cadillac" of inventories right off the bat.
I understand their reasoning -- it's hard to get people to invest in a $300-$500 "startup kit" with the prospect of making $500 a month. But that's also the REALITY of the situation that most home inventory service business owners face.
The home inventory service business is in its infancy at this point. Few people have heard of the service ... even fewer nationally have actually used a home inventory service business to document their possessions. Of course, once they do decide to use the service -- and particularly if they ever need to file a claim -- they're sold. But understandably, few people want to be pioneers.
So when you come around and offer to document all their possessions for $300-$500, you face some hurdles:
- They've never heard of someone offering this service before, so you need to educate them.
- They don't know you, and they're trusting you to come into their home. (How do they know you're not going to use that information for nefarious purposes?)
- A minimum investment of $300 is quite a bit of "insurance" to purchase when they don't know if they'll have a claim or not.
- They think that their existing insurance will cover their losses (it often isn't until they have a claim that they realize the burden of proof that is required from them).
Instead of looking to hit a home run -- especially with a NEW home inventory service business -- try to just get on base. You're not going to make a million dollars in your first year of operating this business ... but you might make a $1000. And you might make $2,000 in your second month. (And who couldn't use an extra $15,000-$20,000 a year from working part-time?)
Jumpstart your business sales by offering an "Express" Inventory for $99 (or $149 with a DVD video). Offer 60-90 minutes of services focusing on overall documentation (photos by the room) as well as documentation (1-2 photos plus serial number and purchase price recording) of up to 20 items (big ticket items -- TVs, computers, iPods, stereo equipment, etc.). Offer to document additional items as an additional cost (say, 1o more items for $25 or 25 more items for $50).
This will help you start generating revenue while building your client list. You can do up to 2 of these express inventories in one evening (one from 5:30 to 7 and the other from 7:30 to 9 p.m.). Do 5-6 express inventories in a week, and you'll earn an extra $2,000 a month. Plus, you'll build a portfolio of inventories, an opportunity to convert them into full inventory package orders later (offer a $25 gift certificate towards an upgrade to a "full" inventory package), and you'll have a list of clients you can contact in 6 months or a year to do an "update" inventory. Plus, you can generate referrals from these customers.
See if you can get the initial customer to refer someone right off the bat. You might offer the service for $79 if they refer someone who books an appointment with you for an Express Inventory and becomes a customer. Offer a $20 discount off for each referral -- if they refer five customers, they get their inventory for free!
In your first couple of months of business, you might end up doing a dozen or more of these "loss leader" inventories -- but you'll be building your business. And I've always felt that the home inventory service business should be one where you don't just serve the client ONCE -- you work with them once or twice a year. Do the initial express inventory and then contact them for a six-month update with an additional 10-20 items for a $59 fee.
If you do 20 inventories in a month, you'll have done more than 200 by year's end ... and the likelihood of one of those individuals needing to file a claim during the year is quite high (11% of homes file an insurance claim each year, on average). That will allow you to get testimonials from satisfied customers who were able to use their inventory, and will help connect you to insurance agents who are in the position to refer more clients.
You'll earn more revenue from a series of "base hits" ($100/express inventory) than trying to hit a home run ($300/full inventory).
