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Heating and A/C repair gouging on parts. Advice needed.

Discussion in 'The Water Cooler' started by BJE80, Mar 22, 2011.

  1. BJE80

    BJE80 Legendary Woodsman

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    Furnace stopped working while I’m traveling for work. My wife calls a local heating and A/C repair place. They come out quickly and find out that it is an “ignition box” . They swap out the box and hand my wife the bill for $561.70. Turns out the part is $438.00 the labor is $94.00 and the tax is $29.79.
    The guy installed it in 30 min. but their minimum charge is one hour. I understand that. No complaints on that.

    I thought the part seemed high. So I looked it up on-line to see what I could of gotten it for.

    First place is selling it for $284.14. http://www.cozyparts.com/Lennox-Parts/ProductInfo.aspx?productid=60J00

    Second place I checked is selling it for $245.00 http://www.acfurnaceparts.com/60j00.aspx

    I understand having to mark up your parts but a 78% mark-up seems a big strong to me. Especially for something the guy installed in 30min and charged me for an hour of labor.

    How much of a gripe do I have? Thinking about calling him and asking how he can justify charging me that much for a part. Either he is gouging it or he needs to look for a new place to buy his parts.
    Thoughts?
     
  2. davidmil

    davidmil Grizzled Veteran

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    Not much of a gripe.... unless the guy would like to keep you as a customer. LOL You might beable to talk him into a little break. If you attack him with the online prices he would probably tell you... then next time call them and let them rush out to install it and see how far you get. Yes it's more than you can get it for online. But your local guy seems to be a good enough businessman to stock the right stuff and respond quickly. So he only charged you for an hour. He could have been one not stocking parts and told you the same price but tomorrow or the next day or a lot longer if I have to order it online and wait for snail mail. LOL Let the guy make a living. The hour charged for labor all went to payroll, matching social security, unemployment tax and all those other goodies most people don't realize a business man has to pay. He has to make enough to stay in business. He's not in it to break even because that pays him NOTHING. Sure he could have probably shaved off a few bucks or a hundred. Personnally, I like to see a man get paid enough to be there the next time I need him..... especially if he knows his stuff. If you had the luxury of waiting several days for an online purchase fine.... but it doesn't sound like you did. Interesting to note that installation instructions are NOT included with the parts if you order online. LOL
     
    Last edited: Mar 22, 2011
  3. BJE80

    BJE80 Legendary Woodsman

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    Completely understand a guy needs to make a living.

    78% mark-up on parts?

    Just curious, at what mark up rate does it become obscene? How much is too much? Maybe it's common to mark-up stuff this much. $438 for a $245 part (he probably paid less yet) seems steep to me.
     
  4. Tony

    Tony Legendary Woodsman

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    It's way too steep .. I would call him on it..
     
  5. Lifesadrag

    Lifesadrag Weekend Warrior

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    I'm employed in the commercial/industrial end of the industry and the price he charged you was retail or list. To be honest with you it sounds about right. In comparison, Wallgreens pays $2.00 per dose for a flu shot and charges $29.99.
     
    Last edited: Mar 22, 2011
  6. BJE80

    BJE80 Legendary Woodsman

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    Thanks for your input. At what point what the mark-up be too much in your opinion?

    Understand why I am critical. It's just my wife and two kids. You know gouging with women goes on because they supposedly don't know better. Not saying that is what happened here but it does increase how cynical I am.

    Again, if this is NOT to much.. what would be?
     
  7. MN_Jay

    MN_Jay Die Hard Bowhunter

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    Same thing happened to me on my well pump, charged me $900 for it and I later saw it for $500. Complaining will probably just get you one less person you can call when you need him again.
     
  8. BJE80

    BJE80 Legendary Woodsman

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    Just want to throw out a side note to this. It never ceases to amaze me how the internet has changed our way of life. 15-20 years ago I just would of grumbled about it and figured what can I do.

    It does keep people a little more honest in some cases IMO. It's harder to pull stuff on customers.
     
  9. davidmil

    davidmil Grizzled Veteran

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    Well now you can do something. You can call him and tell him you're not paying. He can come and take it out or take you to court. You can then order your part(without instructions included), wait several days for delivery.... and then burn your house down because you hooked black to red. LOL Get over it. You're comfy and warm tonight because a successful business man answered your wife's call and responded quickly. If you want to start shopping prices in an emergency..... have at it.... just make sure your wife has a set of long johns.
     
  10. GMMAT

    GMMAT Grizzled Veteran

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    I'm betting that part got marked up 100%.

    So, bottom line is.....you paid the man a couple hundred bucks for his expertise; his labor; his ability to obtain the right part and his prompt attention to your issue.

    I had an AC part go out on my Yukon, once. First estimate I got (wasn't gonna use them) was $1,600.00. My reg. mechanic says he can fix it for $900.00. When I told him how the other guy was gonna gouge me, he said..."not really". The other guy's was installing OEM parts that would have been be covered under warranty. My guy wasn't. Saved me $700+, and I never had an issue with it. But, it was a slight gamble.

    What kind of warranty comes with on-line parts that you install?
     
  11. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price(usually determined by the manufacturer) as shown on the second web site. The wholesale price is not supposed to be for the consumer. As a matter of fact the sites you mention marked up that part so they could also turn a profit....Just how our system is intended to work.
     
  12. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price(usually determined by the manufacturer) as shown on the second web site. The wholesale price is not supposed to be for the consumer. As a matter of fact the sites you mention marked up that part so they could also turn a profit....Just how our system is intended to work.
     
  13. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price(usually determined by the manufacturer) as shown on the second web site. The wholesale price is not supposed to be for the consumer. As a matter of fact the sites you mention marked up that part so they could also turn a profit....Just how our system is intended to work.
     
  14. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price(usually determined by the manufacturer) as shown on the second web site. The wholesale price is not supposed to be for the consumer. As a matter of fact the sites you mention marked up that part so they could also turn a profit....Just how our system is intended to work.
     
  15. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price (usually set by the manufacturer) as shown in the second web site. The web site actually marked the part up to turn a profit too. The wholesale price usually is not intended for the consumer. Just the way our system works.
     
  16. Lifesadrag

    Lifesadrag Weekend Warrior

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    I would say over the suggested retail or list price (usually set by the manufacturer) as shown in the second web site. The web site actually marked the part up to turn a profit too. The wholesale price usually is not intended for the consumer. Just the way our system works.
     
  17. Txjourneyman

    Txjourneyman Die Hard Bowhunter

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    78% is not a bad mark up at all. The last electrical service company I worked for driving a service truck had a 110% mark up. Way back in the deep dark past when I worked selling motorcycle parts the mark up was at least 100%.
    Today when I do side work,(which I only do for friends and family), I give them a list of material to get so they can pay retail. If they want me to get it they will pay a mark up despite being a friend or relative.
    Did he provide prompt, courteous service? Was the repair made in a profesional workman like manner? If the answer to these questions is yes, save his number. You may want to call him again.
     
  18. Txjourneyman

    Txjourneyman Die Hard Bowhunter

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    78% is not a bad mark up at all. The last electrical service company I worked for had a 110% mark up. Way back in the day when I worked behind the counter selling motorcycle parts the mark up was at least 100%. When I do a side job for friends and family they have the option of buying the material themselves. I'll give them a list of what to get. If I have to get it there will be a mark up.
    Ask yourself this. Was the service prompt and courteous? Was the repair done in a professional and workman like manner? If the answer is yes you may want to keep his number for when you need him again.
     
  19. Txjourneyman

    Txjourneyman Die Hard Bowhunter

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    78% is not a bad mark up at all. The last electrical service company I worked for had a 110% mark up. Way back in the day when I worked behind the counter selling motorcycle parts the mark up was at least 100%. When I do a side job for friends and family they have the option of buying the material themselves. I'll give them a list of what to get. If I have to get it there will be a mark up.
    Ask yourself this. Was the service prompt and courteous? Was the repair done in a professional and workman like manner? If the answer is yes you may want to keep his number for when you need him again.
     
  20. Txjourneyman

    Txjourneyman Die Hard Bowhunter

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    78% is not a bad mark up at all. The last electrical service company I worked for had a 110% mark up. Way back in the day when I worked behind the counter selling motorcycle parts the mark up was at least 100%. When I do a side job for friends and family they have the option of buying the material themselves. I'll give them a list of what to get. If I have to get it there will be a mark up.
    Ask yourself this. Was the service prompt and courteous? Was the repair done in a professional and workman like manner? If the answer is yes you may want to keep his number for when you need him again.
     

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