Vol. 5: Issue #15: Letter #90 (Previous
newsletters available in archives
on web site)
When I asked one of our sales persons the other day about the status of a specific prospect, he replied that the prospective customer had repeated the old bromide "that he (the salesperson) would have to sharpen his pencil". Having been in sales as long as I have, I recognized this gimmick for what it was, but repeated one more time, the proper response to this old bromide. That he should remind the prospect "that a sharp pencil can be a dangerous weapon…that it can stick you…but good! That the lowest price is rarely (if ever) the best value. And nowhere is this more evident than in residential heating and air conditioning…where differences in price for either the product (or for the services required to install and service it), often fail to reflect the real difference in the final result. Although the brand name of a well known manufacturer does count for something, because of the variety of models and more important, the experience of the dealer who must install and service the product, a "sharp pencil" hardly assures a consumer that the quality is good, fair or poor. A couple of hundred
dollars saved on the front end of a transaction, while not to
be minimized, pales into insignificance when the true savings that
stem from the economy of operation and maintenance over the long haul
is taken into consideration as the equipment and service becomes an
integral part of your home…and can more than make up for the
possible differences in initial cost, PROVIDED…you have selected
a contractor you can trust!
Taking advantage of the fact that most people understand the need for mechanical equipment with moving parts to be serviced and maintained, some companies at this time of year, begin hawking "Heating System Specials" for unbelievable low prices: $49.95, $39.95 and even $29.95 bargains. Bargains? Right! We've said this before and it bears repeating: "DO THE MATH"!!! Qualified service technicians in our area earn between $15-$25/hr (if you know of one earning less, please refer him to us, we need all the help we can get). Traffic conditions mandate that at least 1 hour be allowed for travel time. It takes anywhere from 45 minutes to an hour and a half to perform proper maintenance on a system (at least it does if they check the 32 points* that we do). Using a minimum of 2 hours, (1 hour travel time; 1 hour to check equipment and using the lowest rate of pay ($15/hr), the minimum cost would be $30. Add to that "out of pocket cost", the expense of operating a $25,000 service van stocked with $10,000 worth of parts, materials and tools to say nothing about normal overhead like rent, lights, gasoline, depreciation, vehicle and liability insurance, health insurance, unemployment insurance, social security, unemployment compensation, telephone, radio, utilities, uniforms, office supplies, advertising, taxes and licenses, employee benefits...well, you get the idea…and also why we reiterate "Caveat Emptor"…let the buyer beware! Do you really believe that any reputable company, trying to make a profit in order to stay in business, can only charge $29.95/$39.95 UNLESS THE SERVICE TECHNICIAN IS ABLE TO PERSUADE YOU TO BUY SOMETHING? Voila! After all, there are companies around that even advertise that "business is bad" or "we need the work". Caveat Emptor. Let the buyer beware! We too, offer Seasonal
Preventative Maintenance Service for heating systems (not $29.95/$39.95/$49.95)
because we know that properly serviced, your heating system will operate
more efficiently and economically; neglected, it can result in costly
breakdowns and inconvenience. There is no wintertime emergency more serious
than a heating system that won't work. |
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