Comments on: Are HVAC Contractors Using a Business Model That Leads to Ripoffs?

By: Carlos

Carlos — Sun, 23 Dec 2012 22:29:20 +0000

Oh, and I forgot to mention.
Oh, and I forgot to mention. I personally don't agree that the problem is a broken business plan (flat rate pricing). After all, the pricing method is not at fault for the dishonesty of people. It's a choice that each contractor makes. You're either true to your principles (if you even have any), to God, to yourself, and to others, or you're not. It's that simple. It's not the business plan that is broken, it's the people. To talk about the industry as whole, just because you're angry at certain people within the industry is definitely not the right way to go about it. Now you're including all the honest contractors out there, even if they are few in number, and giving them a bad name on the account of the dishonest ones.

By: Carlos

Carlos — Sun, 23 Dec 2012 21:59:30 +0000

I have a question as well as
I have a question as well as a statement to make. I myself am a contractor. I have to be honest. I realize that it is, perhaps, something that I should really work on improving, but the one problem that I seem to have run into working for other companies is my pace. First of all, I don't have the 15+ years of experience that my most recent and former boss had, therefore it's logical that I'm not going to move at the same pace as he does. But I can definitely do the job. Furthermore, as a Christian, it goes against my principles and against my conscience to charge someone for something that isn't broken. I have fixed my own fridge and boiler, as well as having done side jobs. Up until now, I have not had any complaints. It doesn't make things easier on me when there are people who, like my former boss, at times put me in a compromising position because of what has been described up top. At times, it seemed he was more concerned about getting paid than it was for me to do an honest days work, even if it meant not earning as much as he'd have liked to. I've been told that with time comes experience, and with experience (repetition) comes an increase in speed. I'm currently thinking, actually working to start my own business because of this problem. Does anyone have any comments, any advice, tips, hints, for me? I would greatly appreciate the feedback.

Thank you,

Carlos

By: James Morgan

James Morgan — Sun, 19 Aug 2012 16:12:25 +0000

Interesting thread. Just
Interesting thread. Just wanted to comment on Dave Eakins remark about BBB: a business will have a rating whether it’s a subscriber or not and that rating is based entirely on consumer complaints to the Bureau, or the lack of them. A few years ago there was a complaint against the Bureau that the highest rating – AAA – was reserved for subscribers, and this issue has been resolved, any business, subscriber or not, is eligible for a top rating if their record justifies it. But a BBB subscription has never protected you from an F rating. That said, I wouldn’t go to BBB ratings to gauge technical competence but rather to see how long a company has been in business and if there are any black marks on their customer dealings. And of course, just as with Angie’s List, customers don’t always know if they’ve been ripped off.

By: David Butler

David Butler — Sun, 19 Aug 2012 05:57:21 +0000

Ed wrote:

Ed wrote:
> There is no good reason to single out the HVAC industry over any other as being particularly likely to rip customers off.

How true. But shows like the Rossen Reports seem to be "equal opportunity" when it comes to choosing who to go after.

By: Ed Voytovich

Ed Voytovich — Sun, 19 Aug 2012 05:01:59 +0000
The same scenario can and
The same scenario can and often does exist in any economic transaction: there is a natural tension between the service or commodity provider and the recipient of the service or commodity.

The tension arises from the imperative to make a profit on the one hand and the need for a product or service on the other.

Unfortunately, it is the rare contractor whose constant objective is to deliver at a fair price what the customer/client/patient really needs as opposed to what will yield the most profit for the payee.

There is no good reason to single out the HVAC industry over any other as being particularly likely to rip customers off.

By: Christopher Cadwell

Christopher Cadwell — Mon, 13 Aug 2012 21:17:13 +0000
Interesting comments.&
Interesting comments.

Nothing new. Since I got started in HVAC I have observed these issues.

I have top ratings on Angies list because I am honest, and I will turn down a compressor replacement, if all it takes is tightening a wire lug to keep the breaker from tripping.

The latest economy is spurring a new trend in consumers to look up and follow the latest reviews. This newbuying habit will likely usher in quality and honesty as something to be heavily rewarded for.

By: Jonathan Merrill

Jonathan Merrill — Mon, 13 Aug 2012 04:12:30 +0000
It also doesn't help that
It also doesn't help that firms like American Home Shield perpetuate A/C "maintenance". They won't cover a claim if the A/C isn't serviced every 6 months! Which definitely opens the door to abuse.

Please keep blogging about this and other energy topics! This is one of my favorite blogs to read.

JMM

By: geoff hartman

geoff hartman — Sat, 11 Aug 2012 20:13:39 +0000
I agree that the billing
I agree that the billing model is not the problem, and I see/hear a lot of "buyer beware," do your research, etc. but no real answers. My last several moves included personal research soon after moving to a new city to try locating a few good resources. Generally car repair, and basic oil change is not too hard. Pool service? A little harder. A/C service? Almost impossible. First there is service/response. 6-8 out of 10 never even respond. Once I get 6-8 appts, I see at least 50% no show. THen thoise that do seldom can diagnose a system or determine what is wrong (if anything) but they can get the sales guy out (for free) to quote a replacement. Oh, and the higher efficiency/quality system is always "too expensive," "not needed," and "will never pay for itself."

So what do I recommend? 1) Referrals! but my neighbor may not be a good technical resource, so 2)request up front that only the top technician be sent, and wait for them to be available, 3) personal interview where you describe symptoms, ask specific questions about what they intend to investigate - and why, and 4) require the technician be able to perform air flow &/or static pressure measurement, capacity check on equipment, air leakage test. Expect to pay for this service. Maybe $150 ?, but not $700 or $800!, 5) never accept the lowest price, and Finally - Tell everyone when you find a good resource, and offer yourself as a strong reference. Here is the last quirk. The A/C companies have NEVER accepted a positive reference or used the offer to request additional leads. Wonder why they waste so much time soliciting new customers when their existing and lead referrals could be keeping trucks running to pre-sold referral work?

Lastly - ACCA's new credentialing program may go a long way to help identify quality contractors. It certainly will identify better qualified, and hopfuly that leads to better service.

By: John Barba

John Barba — Thu, 09 Aug 2012 18:53:41 +0000
Can o' worms opened up here.
Can o' worms opened up here. I don't have a problem with flat-rate pricing, or time-and-materials pricing, for that matter. It's like any kind of tool. A hammer in the right hands is an instrument of construction. In the wrong hands it's an instrument of destruction...all depends on who's holding the hammer.

It's a shame stories like this tend to paint with a Wagner Power Sprayer as opposed to simply a "broad brush," but it's good that an ACCA representative was part of the story. One hopes that the outcome of the story is that people pay a little more attention to whom they hire.

I tell my contractor-students all the time that the average homeowner assumes competence when they hire someone. After all, if you have a shingle over your door that says HVAC Service Contractor, it's reasonable to assume that contractor would have a minimum level of competence and integrity (we are a trusting people!). You don't find out otherwise until it's too late.

Bottom line - buyer beware is a good mantra. It's important for customers to do their homework, don't assume all service providers are the same and don't treat your home comfort system as a commodity. Ductwork, pipe, furnaces, A/C's and boilers MAY (MAY!!!) be commodities, but the people that put them in and service them most certainly aren't.

By: David Butler

David Butler — Thu, 09 Aug 2012 00:06:30 +0000
Great article Allison.
Great article Allison. Nothing to add.