In Home Service Call Charges

[t-man403]

Don't want to "beat a dead horse" or stir the pot, but, this little article was interesting.

https://www.essmwa.com/heating-cooling/200hour-service-call-are-you-kidding-me/

[bscrive]

A whole lot of bull crap to try to justify the cost.

[Moonshot_1]

They are right. It is not as outrageous as it seems. It is just flat out outrageous.

My brother had a story this Christmas about a local heating company in his area. (Detroit area)'

Has a house with radiant heat. (Boiler/radiator)

One of the rooms was not heating up. The radiator was cold. Apparently there was an air bubble or air lock in the system and the air needed to be bled from that part of the system.

There are bleeder valves to do this but my brother was not familiar with the process of how to do it.

He calls the most popular heating and cooling company there. Don't recall the name. Guy comes in spiffy van, uniform, everything really decked out, checks things out and tells him the boiler is a mess and will be a minimum of $1400 to fix.

Brother can't believe it. As he is looking at the boiler he sees a tag, apparently from the original installer from decades ago. It has a phone number. A guy answers. It turns out to be the actual guy who installed the boiler.

My brother tells him the assessment of the other company. The guy calls BS on it right off.
Anyway, my brother gets him to come over. The guy is in his mid 70s, dirty, grungy, old Vietnam vet. Drives up in a beat up pick up. Tells brother about how he installed the boiler in the house and some history of the neighborhood. Reads riot act about other heating company to my brother. This guy actually knew the owner of the other heating company and called him and told him how his tech was trying to rip off my brother and he better not be getting a damn service call bill from him or else.

This is in front of my brother listening to the conversation

Guy goes downstairs, bleeds the line in question, this is less than 5 mins. room heats up instantly. Problem solved. $50 maybe?

Brother does not get a service bill from other company.

[cookiedough]

The high costs of doing business has gone up am aware of it, but the ones who stay lower in price I would think stay in business longer than the ones who price gouge thinking people are idiots for paying say double of other reputable repair businesses.

I recently before winter got several quotes on doing a basic front struts on my SUV.  A few places were very similar in price, while a few were double the price almost.  I asked one local place why so much, he said is the cost just to keep the lights on.  I politely thanked him for his time to provide a quote but told him I will be going elsewhere. 

An educated consumer is a wise consumer pays to do your research most of the time.

[t-man403]

Guys, this thread is about the cost of doing business!  It is not about any hard luck stories of getting ripped off. I for one am very interested because I am in the service industry and I hope none of my customers ever have a bad story to tell about me!
The article link I posted is State side and I think most of you know it is more expensive to live in Canada. The numbers don't lie. I guess I'm just wondering how the numbers can be argued with other than cost of living may vary a bit state to state province to province.

[DIGGER]

I am a  retired  electrician with 44 yrs in the field.  I was in the IBEW union.   I find a lot of truth in the article.   It's true that there are cheaper companies out there but you get what you pay for.    Is the cheaper tech licensed to do the work?    Is he bonded?  Is he insured??    Is he going to fix the problem or is he going to put a bandaid on the problem that can just cause bigger problems down the road?    Is he going to be able to warranty his work?  If he works on your house and that night it burns down and he is not licensed, bonded, or insured and your mortgage company may not want to pay the claim.   Does his company carry Workman's Comp on their employees or if he gets hurt doing the repairs is he going to sue you?    There are a lot of factors that go into "making a Profit".   To be a reputable contractor you have to pay your employees fair market price for a trained worker with a good safety record that knows the business.  You have to be bonded, insured, licensed, carry workman's comp, and have good company trucks and good field equipment.    There is nothing more expensive than company trucks that are in bad repair and in the shop a lot.  Not only is the repair costs high but you now have 1 or 2 men sitting idol drawing pay.    All these things I listed are very very expensive.   Workman's comp is very expensive.  There are required safety meetings, uniforms, equipment, etc etc etc.   When my personal vehicle breaks down I have to pay a high price to get it repaired but I pay it to get it repaired and when I leave there it is FIXED.    It's the cost of doing business.

[Dave Ritsema]

I am a  retired  electrician with 44 yrs in the field.  I was in the IBEW union.   I find a lot of truth in the article.   It's true that there are cheaper companies out there but you get what you pay for.    Is the cheaper tech licensed to do the work?    Is he bonded?  Is he insured??    Is he going to fix the problem or is he going to put a bandaid on the problem that can just cause bigger problems down the road?    Is he going to be able to warranty his work?  If he works on your house and that night it burns down and he is not licensed, bonded, or insured and your mortgage company may not want to pay the claim.   Does his company carry Workman's Comp on their employees or if he gets hurt doing the repairs is he going to sue you?    There are a lot of factors that go into "making a Profit".   To be a reputable contractor you have to pay your employees fair market price for a trained worker with a good safety record that knows the business.  You have to be bonded, insured, licensed, carry workman's comp, and have good company trucks and good field equipment.    There is nothing more expensive than company trucks that are in bad repair and in the shop a lot.  Not only is the repair costs high but you now have 1 or 2 men sitting idol drawing pay.    All these things I listed are very very expensive.   Workman's comp is very expensive.  There are required safety meetings, uniforms, equipment, etc etc etc.   When my personal vehicle breaks down I have to pay a high price to get it repaired but I pay it to get it repaired and when I leave there it is FIXED.    It's the cost of doing business.

 

Agree with all of the above. There is a very real cost to doing business and in that scenario costs approaching $200 an hour for someone to come to your home and perform a repair is not that outrageous. Our local Ford dealer charges $185 per hour when you bring the car to them, imagine how much more it would cost if you asked them to come to your house and fix it.

Qualified people do not come cheap. Now charging $1400 to perform a 30 minute task is another thing completely and I understand the outrage of the person involved in that situation.

[hubcapsc]

I take my Mini Cooper to the dealer. Minis are strange little cars,
the once or twice I went to other than the dealer, the work had to
be redone. It's not cheap to have the overhead of a dealer, but
the guys back in there know how to work on Minis and they use
OEM parts. I guess my 2005 Mini will turn over 200K this year.
It got a new clutch this year, a new fluid-filled motor mount and
new lower control arm bushings. I checked the parts prices on
line, the dealer parts prices were as good or better. The labor
cost, though, was giant. Skilled knowledgeable dependable
workers require a living wage...

-Mike

[Jess Tolbirt]

i was a union electrician once and i had to charge the company i now work for 1500 dollars to change a 28 dollar light bulb in a street light.
it was 200 dollars for me to start the bucket truck plus 200/hr. with a 4 hr minimum. my labor was 125 per hour with a 4 hour minimum. and then i had to charge 218 dollars for a 450 watt M/H bulb that cost us 28 dollars.. i now work for that company for the last 10 years, wish i would have found this job 40 years ago...

[DIGGER]

i was a union electrician once and i had to charge the company i now work for 1500 dollars to change a 28 dollar light bulb in a street light.
it was 200 dollars for me to start the bucket truck plus 200/hr. with a 4 hr minimum. my labor was 125 per hour with a 4 hour minimum. and then i had to charge 218 dollars for a 450 watt M/H bulb that cost us 28 dollars.. i now work for that company for the last 10 years, wish i would have found this job 40 years ago...

how much did that bucket truck cost?    How much is insurance on a bucket truck?    How much is maintenance on that truck?   Hydraulics when they break down?   Two people usually on a bucket truck,  Work mans comp?  Your salary?  Your health insurance?  your retirement?  Your training?   company's Profit?   Man, don't you guys get me wrong.....I am with you on it costs a lot to get that kind of work done.  I wish it didn't cost that much.  It just does.   

[Gryphon Rider]

A competent technician who has his customers' interests in mind is worth his fees.  One who's first instinct is to propose the most profitable "solution" isn't.  I'm blessed with some mechanical aptitude and a healthy body, so I am able to DIY almost everything.  Many are not, and others consider their time more valuable than what they spend on tradesmen, and are well-served by competent technicians.  Those who have neither the skills nor the money to pay for professional work better maintain friendships with DIYers who can help them.

[Oss]

As with many things attitude is important
Treat people with respect they usually will be ready to be the same

I represent many of the people who have come to do work for me now

My oil man...Carpenters electrician plumbers auto mechanic all now friends
Now.i think I have a new  BMW mechanic once winter ends

I pay the man and say thank you for the service. Clients bring me scotch. 

[G-Man]

I sure hope all yous guys defending the high cost of doing business as the reason fees are so high remember all this when you complain about your next medical bill.

 

[DIGGER]

I sure hope all yous guys defending the high cost of doing business as the reason fees are so high remember all this when you complain about your next medical bill.

 

I was afraid this was going to happen....man I'm not defending the high cost...just trying to explain the high cost.   I lived that life for 44 yrs and I think it cost a lot more for a reputable company to drive up in your driveway than most people think.   Yes there is profit built in to a price but the owners of the company are in business to make a profit......they are not there for the experience....ha

[hubcapsc]

complain about your next medical bill.

I've had to grind through a few hospital procedures lately, it seems
pretty clear to me that those places cost even more than the Mini
Cooper dealer to run  ... jokes aside, I also see how it must suck
to be without insurance...

I'll just complain about drinking that cup of phlegm they call "contrast"...

-Mike

[DIGGER]

complain about your next medical bill.

I've had to grind through a few hospital procedures lately, it seems
pretty clear to me that those places cost even more than the Mini
Cooper dealer to run  ... jokes aside, I also see how it must suck
to be without insurance...

I'll just complain about drinking that cup of phlegm they call "contrast"...

-Mike

Sorry you are having medical problems

[hubcapsc]

Sorry you are having medical problems

Thanks... I hope it finally comes up as a bad gallbladder or something,
they're going to look at that again next week. There's some goo they
need to do a real gallbladder test that was on national back-order
a month or so ago. In the meantime, they checked a bunch of other
stuff it might be and  so far I'm clean as a whistle 

-Mike

[DGS65]

I own an Alarm and Telephone company and have for many years,  The industry just doesn't demand these types of numbers for service!  Unfortunately I still have to be licensed bonded and insured I have to pay for trucks fuel and insurance for them as well as a bookkeeper and techs to pay.  My customers would complain no matter what I charge and every time I turn around there is yet another company trying to brake into the business and giving systems away and now discounting the monitoring if this keeps up I will be looking for a new career soon.  BTW I only charge $80 per hour per man and this is in NY.  Union wage is out of control yes it is great as a worker but there in no way to break even in my business paying union wage!

[Sorcerer]

I work in property management as a maintenance tec. Fancy name for a fix it guy. We are having a water heater replace at 2 of my property’s. Called our corporate project manager last week to find out when/ about the install. Seems the “mechanical” company he likes to use is not licensed to do plumbing work in one of the cities. Project manager tells me the company he wants to use is trying to see if some one they know would pull the plumbing permit for them.;(

[..]

Ask the cost.

Don't like it, don't use that company.

[cookiedough]

Ask the cost.

Don't like it, don't use that company.

exactly!  

I refused to take delivery of a new vehicle once due to 295 dealer dollar service fee I found out while signing papers.  All others in my area are around 185 to 195.  I said lower it 100 bucks or no deal.  They refused, so no sale!

Oops, make that twice.  Forgot about the time long ago in the early 1990s when local dealer ordered a new silverado truck for me and found out the day BEFORE delivery GM offered to customer ONLY another 500 rebate.  I showed papers to GM dealer next day right before delivery and they said sorry, cannot do.  So,  upon delivery after they prepped and cleaned vehicle for sale, I said sorry, take my business elsewhere.  Dealer had nothing to loose money wise but a sale, and all future sales since have not been in that dealer once ever again. 

Same holds true to repairs, find out cost BEFORE (if possible?) and shop around (If possible?) not  in an emergency hopefully.  Sometimes though have to bite the bullet and cough up the dough regardless.

Still around me a lot of dealers hiring mechanics do NOT supply the tools to fix vehicles, relying on their certified mechanics to have their own basic tools brought to their shop.  NEVER understood that and this is from certified GM/FORD, etc. dealers.  I know 2 local mechanics who worked at those  2 dealers and was shocked to find that out.

[sheets]

how much did that bucket truck cost?    How much is insurance on a bucket truck?    How much is maintenance on that truck?   Hydraulics when they break down?   Two people usually on a bucket truck,  Work mans comp?  Your salary?  Your health insurance?  your retirement?  Your training?   company's Profit?   Man, don't you guys get me wrong.....I am with you on it costs a lot to get that kind of work done.  I wish it didn't cost that much.  It just does.

Same vein of thought when repairing accident (crash) damage to highways (in Calif.). If the responsible party is known (based on CHP or city police crash reports) the RP will get a bill for the cost of repairing the damaged asset to the roadway. There is a "loaded" billing rate for each worker, the hourly rental rate for each of the vehicles and equipment, and the materials. There is no "mark-up" for materials. They get billed at whatever the cost was to purchase said pieces to restore the asset to its original state (signs, posts, guardrail, posts, etc.).  Detailed records are kept, so the RP does not get over-charged. Or under. Cost for a single post sign is minor. Cost to repair larger signs, multiple sections of guardrail, concrete or asphalt work, plus multiple pieces of equipment + operators and ground crew = big bucks. Hope the RP has good insurance.