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Undercutting prices

In our area, the average price of a HERS rating is around $500, the lowest I have seen is $395 and the highest was $750.

Recently, an established rater in the area sent letters to builders offering ratings at $195. I think this hurts the industry and devalues the product. Am I seeing this wrong?

Comments

  • Julie TolliverJulie Tolliver Posts: 124
    @"Brad Brinke#" you are absolutely not "seeing this wrong".

    If you are a rater, no doubt you have calculated your cost - labor, equipment, travel, overhead, profit and understand all that a quality HERS rating entails, so you know that there is no way a Rater can exist at that price point. Unless, he's got some secret sauce that reduces labor equipment etc? Is it possible to increase operational efficiency to a point where that would be a profitable model? That's something to ponder.

    Now, you said "established" rater, but didn't speak to "quality". We do thorough and detailed seal and insulate projects. A few years ago a "competitor" offered "attic airseal" for $350 (can't remember the number exactly @"Jeremy Begley" do you remember?). My thorough scope, $3,500. His scope, $350. They're not "doing that work" anymore.