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08-14-2008, 04:42 PM
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Senior Member
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"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
Location: Uptown
14,544 posts, read 4,817,649 times
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Quote:
Originally Posted by Stew57
Also another thing to remeber if you buy the equipment online and then start calling companies to install it....don't expect many to give you discounts. Some may even raise their fee and have it in writing....and they may also may tell you that though they stand behind their work they make no warranty claims since you bought the items through the net.
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A lot of installers get upset because they don't make any markup $$$ on the equipment. That would be fine if they stood behind their marked up equipment. A unit I had installed started leaking after 3 years. A screw had vibrated against the coil (contractor said factory defect). The manufacturer stood behind their part but noone stands behind the labor on the repair. This would not be stood for in the automotive industry (my field). I markup my parts (get discounts from distributers), but when a part fails I end up eating the labor. The markup on each part covers the few I have to warranty the labor for. If they can't install a customer supplied part for the same price, they LIED on thier bid. Should have bid less on the equipment and more on the install.
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So making a profit at a business is bad? They won't stand behind labor for a reason. Contractors work on everything from 40 years old to brand new you can't warranty your work when you work on a 40 year old machine....you'd lose horribly....same could be said for anything over 7 1/2 years old. You can buy a labor warranty when you purchase new equipment that will last as long as any warranty.
Description of cost to allow a contractor to profit.
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08-14-2008, 04:43 PM
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Senior Member
Status:
"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
Location: Uptown
14,544 posts, read 4,817,649 times
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Quote:
Originally Posted by Stew57
I find it funny when the contractors talk bad about moon lighters doing bad work when the moon lighter is their own installer. When you can buy a 16seer goodman heat pump and air handler online for half of what the dealer wants and have his own installer install it for half of what he charger, and get the same labor warranty it seems to be a no brainer. To be fair though the installer I am using talked me into an 18 seer Luxaire because he could get it faster and the price was only slightly more.
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Do you have customers on the side and you use company parts?
It's no competition specific. Your taking away business.....using the company name....company parts....you can't back up your work or your health should you need an insurance claim...
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08-14-2008, 08:18 PM
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Join Date: Aug 2008
10 posts, read 16,871 times
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I have no problem with someone making a profit. I am not saying someone should stand behind something they don't install. If they markup the parts or system and the part or system goes out they should eat the labor for changing that part or system they made additional profit on. If they don't exactly what is the markup for?. We stand behind our parts in the auto industry. I wouldn't stand behind a transmission when I changed a starter, but if the starter goes out during the warranty period, we provide the labor. I would stand behind the starter regardless of the age of the vehicle. I don't believe anyone should compete with their employer (although I am sure many of mine do repair work for freinds and relatives on the weekend) or steal parts/supplies. I have loaned scanners to employees to work on autos at their house though. Bad parts do happen. Manufacturers do let a bad one through sometimes. We markup the part costs to cover the labor required to change these out. Now what is the markup on HVAC parts by the installers for.
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08-14-2008, 08:24 PM
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I need to be more clear. I understand the overhead for companies. Insurance, building, shop equipment, utilities, and health benifits can eat you alive. An idividual working out of his home garage can kill me on price because he has none of these. I am sure the HVAC industry is the same way. I just don't uderstand the no warranty on labor after marking up the units, and most of the contractors lie about the markup. Just be honest.
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08-14-2008, 08:36 PM
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Senior Member
Status:
"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
Location: Uptown
14,544 posts, read 4,817,649 times
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Quote:
Originally Posted by Stew57
I have no problem with someone making a profit. I am not saying someone should stand behind something they don't install. If they markup the parts or system and the part or system goes out they should eat the labor for changing that part or system they made additional profit on. If they don't exactly what is the markup for?. We stand behind our parts in the auto industry. I wouldn't stand behind a transmission when I changed a starter, but if the starter goes out during the warranty period, we provide the labor. I would stand behind the starter regardless of the age of the vehicle. I don't believe anyone should compete with their employer (although I am sure many of mine do repair work for freinds and relatives on the weekend) or steal parts/supplies. I have loaned scanners to employees to work on autos at their house though. Bad parts do happen. Manufacturers do let a bad one through sometimes. We markup the part costs to cover the labor required to change these out. Now what is the markup on HVAC parts by the installers for.
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Profit. You don't have a fleet of vans that get 10 MPG do you? The markup is still subject to free market conditions....If they get outrageous then the market simply won't buy and they go out of business.
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08-14-2008, 08:40 PM
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Senior Member
Status:
"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
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14,544 posts, read 4,817,649 times
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Quote:
Originally Posted by Stew57
I need to be more clear. I understand the overhead for companies. Insurance, building, shop equipment, utilities, and health benifits can eat you alive. An idividual working out of his home garage can kill me on price because he has none of these. I am sure the HVAC industry is the same way. I just don't uderstand the no warranty on labor after marking up the units, and most of the contractors lie about the markup. Just be honest.
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I think it's clear to many many people what the markup is. Most go online and google the part number anyways to find out the markup was 100% or more. It's the customers decision as to who they use.
I'll make it clear everything you purchase from a HVAC company has a profit worked into the price. labor....gas...trip...parts...maybe even research or calculations.
The labor is no warrantied because of pre existing conditions. Someone calls you up with a system that hasn't been serviced in 10 years and wants you to fix their part and warranty the work.....In this industry it's a finely tuned machine...one setting is wrong and it can destroy the motor.....there is a bit more room to play with motor vehicles.
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08-15-2008, 06:18 PM
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How about on NEW systems, why no labor warranty by the installers? I agree you have to make a profit. People see my hourly rate and cringe, but to make a living I have to turn wrenches also. You are right I don't have a fleet of vehicles but I bet my tow truck has a higher fuel consumption rate, and my tools, scanners, and computers probably cost just as much. Hey everyone needs to make a living why hide it in system markup? People come in all the time and say "I can buy that starter cheaper at Pep Boys" . I tell them fine I will instal it at the same price as for my part but if the part fails the labor is not covered. Now how would you feel if you could not buy any parts and we shop owners could charge what we want. The only competition you have is fellow HVAC contractors, we have the potential customers, his friends, and the HVAC contractor down the street as competitors. Do you service your fleet or do you support your local auto service shop down the street? I kinda wish I had went with the Goodman system just to support them.
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08-15-2008, 10:07 PM
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Senior Member
Status:
"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
Location: Uptown
14,544 posts, read 4,817,649 times
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A lot don't have the sources to keep their service vehicles up so they support their local mechanics.
You can get a labor warranty...but you pay for it.....it's hidden in car warranties but the same rules apply.
Those potential "fellow Hvac" can be some serious hacks....this is where the comparison changes.....HVAC has a lot less requirements. Look for that to change. It cost a lot of money to fix hack work. Same could be said for Car mechanics...unfortunately it's a lot more obvious in that field.
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08-15-2008, 10:30 PM
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be quiet, sit down , stop running, no jumping. urg
Status:
"bah humbug"
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Join Date: May 2008
2,751 posts, read 1,561,034 times
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My hubby had his own HVAC co. for 25 yrs. in Atlanta. No expensive ads, one truck, long-time trusted subcontractors for certain jobs. A lot lower markups and hourly charges,. We had what we needed and were sometimes blessed with our wants.
You wouldn't believe some stuff he did for 'free'.....but customer loyalty and constant word of mouth referals were really the best 'pay'....He slept well at night too.
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08-15-2008, 10:34 PM
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Senior Member
Status:
"By their fruits ye shall know them"
(set 7 days ago)
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Join Date: Nov 2007
Location: Uptown
14,544 posts, read 4,817,649 times
Reputation: 1384
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Quote:
Originally Posted by crazyma
My hubby had his own HVAC co. for 25 yrs. in Atlanta. No expensive ads, one truck, long-time trusted subcontractors for certain jobs. A lot lower markups and hourly charges,. We had what we needed and were sometimes blessed with our wants.
You wouldn't believe some stuff he did for 'free'.....but customer loyalty and constant word of mouth referals were really the best 'pay'....He slept well at night too.
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Hard work should be respected more than lower prices.....it's not.
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