Pricing model

> I wonder if any use a percentage of value as a pricing model for surveying services.

Do you mean a percentage of the value of the property?

To me, it doesn't make a lot of sense. I can do a survey on a $500k piece of property fairly easily, especially if it is in a new development.

The $100k piece of property, in an old neighborhood or a rural area that hasn't seen a surveyor in a century. Well, this one might cost a little more.

Do you price your work based on what the client can afford, or on the scope of the work?

I feel sorry for the dirt farmer that just wants to give his 2 sons equal shares of the property he can barely afford, while the banker, who holds the mortgage on his property, shops for a low-baller to stake his fence.

Life isn't fair, at least no one told me it was.

Radar

One of the session topics at the Fresno conference was viewing land surveying truly as professional service rather than as a commodity. Although pricing as a percentage of property value has a ring of value based fee, it is still a form of commodity pricing similar to pricing per linear foot of boundary, price per acre, etc.

Evaluate each project on it's own merits based upon all applicable factors and base your fee estimate on that.

Value of property may be one of the factors you consider. That's probably what you meant though.

Doctors price by type of service/proceedure offered. Office visit, hospital visit, surgery

Attorney, most price by hourly fee

Hair dressers/Barbers by service hair so much, shampoo something else

Many engineers prefer a lump fee because this allows them to goose their profit multiplier a whole bunch

Realtors use a value model a percent of the value of the property being sold.

Probably most surveyors use a model tailored to the specific job at hand.

> I wonder if any use a percentage of value as a pricing model for surveying services.
I don't, not directly anyway. But the amount of liability I am accepting is always a factor. The greater the value of the property, the greater the liability.

I would love to charge 2% of most of the selling fees. I would make more than I lose on the dog jobs.

Will it happen, nope! I'd be proud and hungry while the rest of the folks continued on.

I'm sorry, I can't follow the logic of "pricing as a professional service, rather than a commodity.". Our projects are almost equally divided by either lump sum, time and material and per foot. We use whatever method the client prefers. Real estate professionals prefer lump sum, they don't like surprises at closing. Engineers and Architects prefer time and material, they are bargain hunters. Contractors prefer linear foot pricing, makes it easy for them to plug me in at the bidding stage.

I am happy as long as I get paid and make a profit. I don't care if they view me as a professional, consultant, hired hand or laborer. My ego has never needed stroking.

Any pricing scheme is subject to that of your neighboring surveyors. You may think a specific percent of property over xxxxx dollars is the way to go. If the next guy they call says $250 anytime, anywhere, you may have a difficult time getting much work from those who price-shop and ignore the quality of the final product.

Routine jobs such as flood certs in an area where you have done many others may be subject to lump sum figures. Your risk is much more important than the value of the property or the time you put in on the job. Don't jeopardize your future by trying to undercut some lowballer who will be out of business by the time the consumer discovers the slipshod product they were given.

Yes any pricing model is subject to market forces.