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Discussion Starter · #1 ·
Customer called me because of a leaking RV ( a topic to be posted, maybe tomorrow). He was upset because I did not call him back quick enough, and got one of those outfits that come dressed to the 9's, and have decent looking rigs.

Anyways, guy puts in four lbs, just to discover the rv was leaking. Gives him a bid to repair ($1,200). Customer informs contractor that he has a extended labor warranty, and the part is covered as well. Needless to say, Dude isn't interested in doing the work afterall. Stuff like that chaps my hide.

I get called to do the job. Don't get me wrong, work is work, and it is my responsibility to take it on, if called. But, I just don't dig on an outfit that drops out, after they find out, it's warranty work, and it won't pay quite as much as the home run.
 

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Customer called me because of a leaking RV ( a topic to be posted, maybe tomorrow). He was upset because I did not call him back quick enough, and got one of those outfits that come dressed to the 9's, and have decent looking rigs.

Anyways, guy puts in four lbs, just to discover the rv was leaking. Gives him a bid to repair ($1,200). Customer informs contractor that he has a extended labor warranty, and the part is covered as well. Needless to say, Dude isn't interested in doing the work afterall. Stuff like that chaps my hide.

I get called to do the job. Don't get me wrong, work is work, and it is my responsibility to take it on, if called. But, I just don't dig on an outfit that drops out, after they find out, it's warranty work, and it won't pay quite as much as the home run.
If the customer didn't ask if the company takes on warranty work for brand X before they came out that guy is an *******.
 

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Customers leave out important info until the price comes out. He should have told the company right up front that there is a warranty on it as well as the company should have asked if it still had a warranty.
Yes and no, if the owner knew it was under warranty should have contacted the manufacturer and had the service arranged through them. If someone calls me they better be prepared to pay my rates. I don't do warranty work that isn't my own.
 

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So when a HO calls me to R2 the roof and siding after a hail storm, I should lower my estimate to what the insurance pays?
 

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The company still gets paid. They just don't get $1,200. There is an industry standard to do the work, and the manufacturer will pay that, at most companies labor rates. Just not going to pay that crazy amount.
Screw that, sorry flash I'm not with ya.
 

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The company still gets paid. They just don't get $1,200. There is an industry standard to do the work, and the manufacturer will pay that, at most companies labor rates. Just not going to pay that crazy amount.
Any company that didn't install the equipment and sell the extended labor contract. Doesn't have to do the work for the warranty contract's price.

There are companies that sell those extended contracts, and choose the lowest labor rate it pays. Not gonna drop my labor rate cause some other company wanted to make an extra 200 bucks on a install.
 

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Capra Aegagrus
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Throughout my electronics career, practically everything we worked on required that you be a factory-authorized warranty repair station in order to be compensated by the manufacturer for warranty repairs.

That was almost always lower than our standard rate, but being on that list brought extra, non-warranty work in. We didn't get to choose which warranty jobs we wanted; had to take 'em all.

But if the HVAC field doesn't follow that model, there's no obligation for anyone to take less than his standard rate. That's just good business.
 

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Jaws said:
So when a HO calls me to R2 the roof and siding after a hail storm, I should lower my estimate to what the insurance pays?
Know what's funny... We make more than normal on our insurance jobs... Dad still won't raise prices. Lol. I'm trying to chat with him about it soon.
 

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Discussion Starter · #12 ·
I see that I am in the minority here, and appreciate your takes. No reason that they should have to do the work at the insurance rates. I sold them the extensive labor warranty, without really knowing the full details (my cost), and now recognize that if I am cool with what maunfacturer X will pay for the labor, cool, but, I should not sell it as "X will pay any licensed hvac company to do the work".

I think the root of past rant, is that several of these outfits tend to mock the independents as hucklebucks who are a little creepy. I think bidding to replace a reversing valve at $1,200 is quite creepy. Sure, it can be a pain, but, we got to get them going. Got to respect the customers dollar.
 

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Discussion Starter · #13 ·
Throughout my electronics career, practically everything we worked on required that you be a factory-authorized warranty repair station in order to be compensated by the manufacturer for warranty repairs.

That was almost always lower than our standard rate, but being on that list brought extra, non-warranty work in. We didn't get to choose which warranty jobs we wanted; had to take 'em all.

But if the HVAC field doesn't follow that model, there's no obligation for anyone to take less than his standard rate. That's just good business.
Good business to do the work? Or just pass on it?
 

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I see that I am in the minority here, and appreciate your takes. No reason that they should have to do the work at the insurance rates. I sold them the extensive labor warranty, without really knowing the full details (my cost), and now recognize that if I am cool with what maunfacturer X will pay for the labor, cool, but, I should not sell it as "X will pay any licensed hvac company to do the work".

I think the root of past rant, is that several of these outfits tend to mock the independents as hucklebucks who are a little creepy. I think bidding to replace a reversing valve at $1,200 is quite creepy. Sure, it can be a pain, but, we got to get them going. Got to respect the customers dollar.
Generally, when you sell a customer an extended labor warranty. Your also suppose to get them to use you to do a service check on it every year. Which they pay you to do, as its not something the labor warranty covers. This way you know system isn't be ran when it has a problem that will cause a major failure. Plus you get to make a few extra dollars. So it helps to cover work done in the last few years of the warranty period, after labor rates have gone up from what they were 8 or 10 years ago.

Lots of people forget that if they agree to say, $85.00 and hour now. 7 years from now, they may need to charge $105.00 an hour to make the same amount of money.

A large shop, with 7 service trucks or more, will have a hard time surviving on 85 bucks an hour.
 

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Discussion Starter · #18 ·
I can appreciate that as well. Which makes it even harder for the big guys. They have the light bill, the computer bill, phone bill....etc. A lot of headaches. Especially when there are a whole gang of hucklebucks who can get the job done for a significantly lower rate.

It's one thing when folks have expendable income. But, in a world where most people are check to check, an unexpected bill of say, $500, can be a mf.
 

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I can appreciate that as well. Which makes it even harder for the big guys. They have the light bill, the computer bill, phone bill....etc. A lot of headaches. Especially when there are a whole gang of hucklebucks who can get the job done for a significantly lower rate.

It's one thing when folks have expendable income. But, in a world where most people are check to check, an unexpected bill of say, $500, can be a mf.
Yes it can.
 

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Da Grump
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Customer called me because of a leaking RV ( a topic to be posted, maybe tomorrow). He was upset because I did not call him back quick enough, and got one of those outfits that come dressed to the 9's, and have decent looking rigs.

Anyways, guy puts in four lbs, just to discover the rv was leaking. Gives him a bid to repair ($1,200). Customer informs contractor that he has a extended labor warranty, and the part is covered as well. Needless to say, Dude isn't interested in doing the work afterall. Stuff like that chaps my hide.

I get called to do the job. Don't get me wrong, work is work, and it is my responsibility to take it on, if called. But, I just don't dig on an outfit that drops out, after they find out, it's warranty work, and it won't pay quite as much as the home run.
If the guy called the other guys to come fix it because he couldn't wait a few extra minutes for you to call him back Ive got no sympathy(spell check)for him myself anyway.
While Im no fan of these big shops that have been trying to corner the market with their franchises,theyre dropping like flies around these parts.
People seem to think theyre the only customer in the world,If it was 4lbs low on Freon chances are its been leaking for a while .So it wasn't like just stopped cooling.;)
 
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