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Why Can't Home Repair Firms Quote Standard Prices?
Question: It seems that every time I need an air conditioning or
plumbing contractor they give me the
run-around in quoting a price. It's
always so much per hour "plus
materials," but they hem and haw when I
ask for an estimate on how many hours it
will take and how much the materials
might cost. Surely they must have some
idea of what it costs to make common
household repairs, don't they?
Reply: Yes, most professionals do
have a pretty good idea, but only after
they determine exactly what needs
fixing. Trying to pinpoint a mechanical
problem over the phone based upon a
homeowner's description is like a doctor
treating a patient without an
examination. You may think it's just the
sniffles, but what if it's the onset of
pneumonia? What if the medicine
prescribed not only doesn't help you,
but makes you even sicker? Likewise with
home repairs.
Another part of the problem has to do
with traditional pricing of labor on a
per-hour basis. A company can lose its
shirt if it guesses wrong about how many
hours it might take to do a given job.
Variations come into play based upon the
system's complexity and accessibility.
For instance, some repairs may require
breaking through a wall or ceiling,
which can add an hour or two to the job.
The cost also may vary with the skills
of the service worker dispatched to the
job. This is something most companies
don't want to talk about, but their best
technicians may be twice as fast as the
inferior performers. In most cases it is
simply the luck of the draw who gets
dispatched to your house.
Then there are those unscrupulous
operators who when work slacks off may
compensate by slowing down to pad their
labor hours.
Some progressive service firms are
trying to resolve these problems by
turning to a flat rate or "contract
pricing" system. Once the problem is
diagnosed, the service technician tells
you the precise amount it will cost to
fix the problem, no matter how long it
takes him or her to do the work. It
works just like you suggest - the
contractors use their experience to
average out the cost of doing various
types of jobs. These prices are listed
in a book or sometimes in hand-held
computers issued to the service
technicians.
Most firms using the flat rate system
still will not quote a price over the
phone, however. Instead, they typically
charge a diagnostic fee to cover their
cost of making the on-site inspection.
This fee is often applicable whether or
not you choose to follow through on the
recommended repairs.
Some people get annoyed at this, but
there is no other realistic way to do
the job right. It costs the company
money to dispatch a technician to the
jobsite and must pay the person for time
spent trying to figure out what's wrong.
For instance, if a gas water heater
stops working, it might be something as
simple as the pilot light being out. But
it also could stem from something more
complicated like a worn out gas valve.
There is a big difference in the cost of
service. Or the problem may not be with
the water heater at all, but in the
home's electrical, gas or water lines.
Also, there may be more than one
possible approach to fixing a problem.
At some point you might be better off
replacing the broken equipment rather
than repairing it. A knowledgeable
mechanic can't present intelligent
options until he looks at the entire
system.
This is why it is risky and unfair for a
service firm to quote a price over the
phone. Telling a homeowner something
will cost "approximately" $100 to repair
is a hair trigger to an argument if that
person ends up with a bill for $200-300.
Reputable companies can get their
reputations soiled unfairly by innocent
misunderstandings. This is why so many
home repair firms are reluctant to quote
prices over the phone.
On the other hand, what if a company
covered itself by quoting the price of
what they might "imagine" to be the
worst-case scenario? Most people would
call someone else to do the job. Or if
they don't, that worst-case scenario
could well turn out to be a
self-fulfilling prophecy.
There are some companies that do give
estimates over the phone. Some mean well
but just don't know any better. They are
counting on luck to bring them a job
that isn't any more complicated than
they anticipated. Others are desperate
for work, and there are always those few
bad apples who will purposely quote a
low price just to get in the door, then
come up with all sorts of "oh but"
excuses to jack it up.
Personally, I think there's a lot to be
said for flat rate pricing. The
advantage to the home owner is that once
you agree to the repairs, you don't have
to worry about the meter running on
labor charges nor about "extra" material
costs. You will know exactly how much it
will cost whether it takes one hour or
all day.
This system was developed precisely
because of the frustrating situation you
describe. Service contractors don't like
hemming and hawing any more than their
customers do. It is a constant struggle
to find prices that are competitive yet
which allow us to stay in business and
earn a reasonable profit.
Proprietary Information, Contractors
2000, Inc., Copyright 1994
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plumber in the San Gabriel Valley, please call us
today at 626-359-1864 or complete our
online service request form.
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