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02-18-2011, 10:09 AM
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#1
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Montana Master
Join Date: Jul 2006
Location: K.C.
Posts: 11,731
M.O.C. #5980
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Why the Pizza costs so much....
I do commercial refrigeration as well as heating and air conditioning and electrical service work.
I just completed work on this little 'Make table' they call it.
I spent over 10 hrs. on it, fixing a difficult problem, can't charge the guy that labor plus welding charges, refrigerant, dryer, and so on...sometimes you have to give the business owner a break.
Often they don't really appreciate it, but that goes with the type of work I do. When it goes back to him, it will be fixed right.
http://tinyurl.com/Ozzrefrigeration-work
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02-18-2011, 11:17 AM
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#2
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Montana Master
Join Date: Feb 2008
Location: Lincoln
Posts: 860
M.O.C. #8154
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Jim,
From an owner of a small pizza ( & Italian) restaurant, I appreciate what you have done for them. I just looked at what we spend last year on refrigeration....almost $6000. We had some issues with one of our units, had to be replaced. Then a major roof problem and all of our outside compressors had to be relocated...ouch. The $6k doesn't include all of the cost to move the units and lines.
One has no idea how expensive it is to be in business these days.
Thanks!!
Ken
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02-18-2011, 12:29 PM
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#3
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Montana Master
Join Date: Jul 2006
Location: K.C.
Posts: 11,731
M.O.C. #5980
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Thank you Ken,
I would like to work for you, as you appreciate what we repairmen do.
I think me being an owner of my small HVAC company allows me to use discretion. I want the transaction to work for the business owner, after all, if they do well, I can return for more work.
For service calls, I get $100.00 for the call. I charge an hourly rate of $75.00, no trip charge, or truck charge added, most do. But when I run into a difficult repair like this, I only charge for what a repair should be, if I have to eat 5 or 6 hours, I do so.
If I charge 60-70% or above what a new unit would cost, I am doing my customer a dis-service. Often we have little idea on how entailed a repair job like this may be.
I never cut quality for profit, my word and reputation matters to me.
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02-18-2011, 12:39 PM
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#4
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Montana Master
Join Date: Feb 2008
Location: Lincoln
Posts: 860
M.O.C. #8154
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All to often, you cannot charge for the time involved to do the job right. All of us in business have experienced this at one time or another. You are an example of the back bone of this country and what makes it work.
All the best....
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02-19-2011, 01:13 AM
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#5
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Montana Master
Join Date: May 2006
Location: Delaware
Posts: 504
M.O.C. #5841
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OT, Ozz, I like your new avatar. Great picture.
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02-19-2011, 01:57 AM
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#6
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Montana Master
Join Date: Jul 2006
Location: K.C.
Posts: 11,731
M.O.C. #5980
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The lady is pretty, but that fat silly-looking guy needs some Photo-shopping work..
Thanks
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02-19-2011, 02:16 AM
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#7
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Montana Master
Join Date: Aug 2008
Location: New Bern
Posts: 4,372
M.O.C. #8728
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Ozz,
I can relate. There are times that I will eat some of the labor for the exact same reasons that you stated. Repeat business means more to me than gouging a customer once and never getting a referral or return call later on.
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02-19-2011, 02:38 AM
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#8
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Montana Master
Join Date: Jul 2006
Location: K.C.
Posts: 11,731
M.O.C. #5980
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Jim, it's tough for guys like you and I. The customer often has no idea how much labor and materials go into the job. As you know, the labor is very often 4x or so the materials cost.
When you have small companies like ours, when I am the guy on the job, it's much easier. We can't expect our guys to work for nothing. That's where it gets tricky.
I hate it when you do all you can and still lose a customer.
I was doing 3-4 calls a day for a property management company, the standard combustion blower motor was around $130, I ran into a Carrier high-end furnace the COST on the combustion blower motor was $375.00. The you had to take the gas valve off, all the piping and the burners out to change it. New tenant, the gas company wouldn't turn on the water heater because of some flex gas line rubbing. I had to fix that also.
As a result of that one job, I lost the account. I took pictures, explained, did no good, at that point, they lost confidence.
If I had it to do over, I would eat the whole job except the standard $130.00
Part of the business. The next guy will run into the same scenario eventually.
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02-19-2011, 04:05 AM
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#9
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Montana Master
Join Date: Apr 2007
Location:
Posts: 992
M.O.C. #7128
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You can please all of the people part of the time and part of the people some of the time, but you can't please all the people all the time.
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02-19-2011, 09:07 AM
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#10
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Montana Master
Join Date: Mar 2010
Location: Land O Lakes
Posts: 2,783
M.O.C. #10246
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Quote:
quote:Originally posted by Ozz
I do commercial refrigeration as well as heating and air conditioning and electrical service work.
I just completed work on this little 'Make table' they call it.
I spent over 10 hrs. on it, fixing a difficult problem, can't charge the guy that labor plus welding charges, refrigerant, dryer, and so on...sometimes you have to give the business owner a break.
Often they don't really appreciate it, but that goes with the type of work I do. When it goes back to him, it will be fixed right.
http://tinyurl.com/Ozzrefrigeration-work
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Ozz, while some may not appreciate your fair business ethic, you can sleep well at night knowing you are not one of those people who over charges for substandard work. Good for you!!! Michael
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