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flat rate hvac invoices Post Review

The HVAC flat rate invoice: via @YouTube

flat rate hvac invoices Q&A Review

What is a dirty little (or big) secret about an industry that you have worked in, that people outside the industry really ought to know?

HVAC work in the U.S. SERVICE CALL: in the “old days” a service call was the labor charge to perform most minor repairs to an HVAC system. Now, most large companies will give you the price for a service call, but they don’t disclose that this is simply a trip charge or diagnostic fee, and that it doesn’t include the actual labor to repair the unit, so you get hit with the "service call” and then, in addition, pay a labor charge, or, more likely, a flat rate price for each part, which includes a built-in labor fee. Recently a customer showed us an invoice from one of our competitors who had the $100 service call. $190 for a capacitor and another $185 for a contactor. Since those parts are quite inexpensive, the labor/profit part of this invoice was actually extremely high, (parts would have cost the customer less than $75 RETAIL from our company) but to an uneducated customer, they think they only paid $100 in labor for the repairs and are happy. (Our same invoice would have been $170, almost 1/3 of their price, but our "service call” is only $5 cheaper, because our service call is the labor fee for all minor repairs.) PARTS PADDING: many, many companies now pay their service techs commission on parts sales, so there is a lot of incentive, a LOT, to replace parts that don’t need replacing. They’ll say, “"well, this contactor is ready to go, so I changed it today to save you a service call fee later!” The customer thinks they are being "taken care of”, when in fact, they are just been “taken!” The management actually trains their technicians to replace electrical components based on the idea that any electrical part over five years old is “ready to fail”, when, in fact, this is just a way to churn parts and profit. Of course, it makes more money for the technician also, AND, at the end of the season, when layoff decisions are ready to be made, the techs who churn the most profit for the company are the ones who get to work full-time that Winter. The aforementioned repair was also an example of churning, as it is unlikely they even needed both parts….likely one or the other was bad. SPRING SERVICE INCLUDES # POUNDS OF FREON: funny thing, most of the time, you will need MORE freon or parts than the one or two so-called free ones. Is it even LOGICAL that a company could afford to pay their techs labor fees, workman’s comp, liability insurance, vehicle overhead, etc, and then give you more freon free than they are even charging for the service? Boy, that company is in business to perform service calls at a loss! Yeah, not so likely. WE JUST HAPPEN TO HAVE A SALESMAN IN YOUR NEIGHBORHOOD: I can’t begin to tell you how many times we’ve heard how a service tech showed up, condemned the system, and the company just HAPPENED to have a salesman nearby who could zip right over and sell the homeowner a new system and get it installed before they could come to their senses enough to get a second opinion and competitive quotes. Just the other day, a tech PROVED to the customer that his compressor was bad by marching out to his truck to get a so-called “new” capacitor, installed it, and the compressor still wouldn’t run. Luckily, they called us out for a second opinion, we installed an actually new capacitor, and they were up and running for less than $150.00! I cannot tell you how many times a Summer this happens! THIS IS A SPECIAL DEAL ONLY AVAILABLE IF YOU SIGN RIGHT NOW : yeah, self-explanatory…it’s definitely a good deal for someone, but not for you, it’s simply a tactic to keep you from having another company verify the system needs replacing, and also to keep you from checking prices with other companies. VOTED THE BEST OF your local city: geeze, come on people, this is an advertising scheme ran by your local newspaper. Trust me, partcipating in this scheme requires a lot of advertising and if you don’t play the game, somehow you’ll NEVER be voted the best of again. REFERRAL services: again, it’s all about advertising, listing fees, etc. even Angie’s list was forced to disclose that advertisers show up first in searches, the BBB is a for-profit that works with members to minimize negative reviews if possible, and there is not a listing service out there that doesn’t favor the people who advertise with them….not a one….not Yelp, not Google, not YP, not a one. Read reviews….dig deeper, ask intelligent questions, be careful! Ask the company something specific….for instance, "If my unit needs two pounds of r410a freon, exactly what will my total bill be?” Or “"If I need a new conrtactor, and nothing else, what would my total charge be?” If they yammer about how they don’t KNOW that this is what’s wrong and they can’t possibly give you a price or range of price without coming out and diagnosing first, hang up and try someone else. Ask your co-workers, family, friends, neighbors, etc for referrals. Ask them who to avoid! Leave reviews….good ones for all companies who treat you well, and after giving a bad company a chance to correct unfair treatment of you, if they refuse, leave a review online explaining why you feel you were treated unfairly. Do NOT use any company who advertises on TV….ESPECIALLY if they have local celebrity spokespeople…..SOMEBODY had to pay that advertising bill and the spokesman’s fees, do you really want to be the one who pays for all that?