"No Service Charge With Repair"

When companies charge a very low fee or provide a 'free' diagnostic price they often fall into one of the following categories:

• A "foot in the door" approach: They offer a very attractive fee, but once there, they intend to charge as much as they can. The fact of the matter and the highest statistical probability is that most customers do proceed with the repair, once the technician has entered their home. 

  An inexperienced or unestablished repair entity (or individual)

• A company that has a technician in the area (anyhow, or idle staff on a payroll).

• A lone technician or a small, unknown company, that are working “off the books”, or do not have a solid infrastructure. We have heard and seen several such cases with people who found technicians at online bulletin boards such as CL. There is a risk, but you could find highly qualified and established technicians at bargain pricing too.

• Where there is a high probability of a 'positive outcome' (defined as a likely repair, or high profit margin). In this scenario we are often prepared to charge a very low service fee!

  TIP: The best way to compare for pricing is to base the price rate (comparison between competitors) based on a tangible repair example or on a measurable "hourly rate" of the company, or on the basis of a "flat rate" for a specific repair objective (for example: compare 'freon leak' quote, or "capacitor", replacement, "Control board" replacement, "condenser motor replacement" total cost)

  A knowledgeable technician is often able to tell you the expected repair cost depending on the symptoms!

• An established company during a slow season, or off season, or on a slow day.

We believe that many companies may mark up the parts several considerably which might give an impression of "cheap labor". I find that some companies find it easier to charge for "parts" than confidently charge the normal labor rate. Keep in mind that for many repairs (and estimates) the technician has to spend time traveling to and from the customers home, and there are insurance fees, fuel, and vehicle expenses too.

If you ask a company to provide you with an "estimate" over the phone, we often are told that most companies typically say that they "can not" diagnose over the phone. This is especially true when you are talking to a receptionist. I suggest that you ask to speak to the technician over the phone.

In our experience, it is often possible to provide an educated diagnosis and expected price range "estimate" over the phone for most given malfunctions (and yet it is hard to find a someone that will give an estimate. There are several reasons for this as we mentioned above.)


Higher rates for Commercial Appliances & HVAC Diagnostic Service call

Typical HVAC repair net earning after parts:
Editorial note: It appears that many companies use an informal "sliding scale" system where they try to earn between $190-$400 per repair, the earning will average out across multiple repairs.  

With some customers or situations, repair companies may  lose money and time by spending more time than initially estimated, especially if a second problem surfaces, or if they get caught in rush hour traffic. When the equipment is inexpensive to replace, or is old, the technician may be find himself unable to charge what he would the technician has no choice but to keep the price within the range that the customer was initially willing/able to pay. 

This creates a disparity between what an appliance technician can earn in contrast to what an equally skilled HVACR (heating ventilation and Air Conditioning/Refrigeration) technician and auto mechanic peer charges with out much misgivings.  

I think that the laws of 'supply and demand', the "declining cost" of  new appliances and the lack of motivation of customers to pay high labor rates are the (invisible) factors that created the apparent lack of standardized hourly rates (and the cheap replacement cost is competing and squeezing the livelihood earnings of the skilled tradesman). At peak summer season or peak winter companies can recoup some of their losses with charging for emergency services when the 'supply' of service is low.

I feel that technicians should be upfront and transparent about the labor that they need to charge and avoid "selling" parts. But customers often do not like paying for labor, especially when some competitors conceal and lower the 'labor' rate through marking up parts several hundred percent (%).

It is sometimes challenging to give a quote by phone due to the practice of many competitors to not disclose the expected profit, or likely repair rate. This could make them sound less expensive.

It seems to work to the advantage of the service company when they do not provide a price quote over the phone. Since we find that most customers do proceed with a repair once they made a commitment to pay the technician for the service call ( therefore, providing pricing, from a pure marketing point of view seems counter productive (in light of the norms in the industry).

When calling for service, please keep in mind that repair circumstances vary and several factors could determine the final quote price. It is always a wise to ask the technician to communicate clearly what his pricing structure is.  Also, emergency service rates and variables such as travel time and distance, brand and type of appliance could all have an impact on repair and service call rates. Some companies in the field will charge more for high-end products, for refrigeration, imports, front loading washers and stackable washer/dryer units.

For people on a budget, or for those whom are comparison shopping for the best price, they might find it useful to ask the repair company or tech for a quote, or a price range for a repair (in the "best case scenario" the "worst case" plus what in his assessment is "most likely cost". I encourage you to get this quote over the phone. The technician will need to know the make, model, approximate age of the appliance and a good description of the symptoms and malfunction. 

The pricing information provided here intended to provide a snapshot of common rates for   consumers by service and repair companies. If you would like to know exactly what we will charge you on our next service call please call us first. 

This page is intended to provide a general overview about Appliance and HVAC service industry pricing trends and consumer behavior with regard to shopping for service. the pricing information provided here does not necessarily represent the rates that 24/7 Express charges. We hope that consumers would find this information useful when considering servicing an appliance or HVAC system.

Disclaimer: The information provided here is an opinion based on impression! The writer of this article did not use a scientific method of data analysis. He approached this  using observation alone [with a focus on economic trends, consumer behavior and general patterns observed]. 
Why is it hard to find a fixed "repair" "price list" on repairs
Our experience is that many companies only offer a fixed price for the initial visit or estimate. When I called GE and Sears for a specific quote for a given repair, I was not able to get a price. It appears that what one normally finds is a repair "price range" and not a fixed rate.

When I attempted to collect data from major players in the Major appliance repair industry, no company that I contacted was willing to provide a concrete pricing quote beyond the service call/trip charge. A former Sears employee told me that Sears used to charge a $240 flat rate for repairing a refrigerator plus parts. He also told me that technicians were encouraged to sell accessories.

I think that many companies avoid giving pricing over the phone perhaps because they are afraid of starting a bidding war where the rates will diminish or the customer will go to the lowest bidder. 
In fact, when I initially tried to establish a price structure for our company, I called GE and Sears and I was very frustrated that the actual repair pricing appeared to be shrouded with secrecy.  I was not able to get a quote, not even if I specified a specific type of repair. The pricing mentioned in the ezine article are lower than I have seen in my area.