HVAC company upselling ripoffs.

[zzyzzx]

Originally Posted By: PR1955
No. I mean that these businesses many times pay MORE for these items than an individual can buy them for on Amazon.


Sounds to me that these businesses don't know how to shop!

 

[hattaresguy]

Of course they mark stuff up, they have to make a living just like everyone else. And no Amazon prices are not always higher than the supply house, sometimes they are a lot less!

 

[KD0AXS]

Originally Posted By: zzyzzx
Originally Posted By: PR1955
No. I mean that these businesses many times pay MORE for these items than an individual can buy them for on Amazon.


Sounds to me that these businesses don't know how to shop!


No, they gladly pay more to get their supplies from a local trade supplier because the service they receive is worth more than saving a few bucks.

 

[Pop_Rivit]

Businesses need to make a profit to stay in business. Most people, and clearly the original poster is in this category, don't have any idea how much it takes to keep a business profitable. If you think you can do it better and cheaper, I would encourage you to do so, but I think you'd be in for a rude awakening.

Out of that markup comes inventory costs, insurance costs (building, vehicle, health, life, liability, workmans comp, etc), taxes (payroll, county, state, federal, social security, property, vehicle), wages (for the service person, warehouse personnel, office personnel and owner), property costs and maintenance, vehicle costs, ongoing training for service personnel, office overhead, and a host of other items. Amazon can sell the items cheaper because of their sheer volume, size and ability to negotiate deep discounts with suppliers. Even a moderate size business simply can't compete at that level, nor should they be expected to.

Do you also whine and complain when you go to a restaurant and have a dinner for two that costs $38 plus the tip, when the same dinner would cost you $11 if prepared at home? Have some wine with that dinner and the markup on the wine is around 400%. Have a soda with that meal instead of wine? The markup is about 1,100% on the soda.

Do you have a text plan with your phone? The markup is around 5,000% on texts. Valentine's day roses for your sweetie? It's around 220%. Taking her to a movie? About 192% just for the tickets. Having popcorn with the movie? It's marked up about 900%. Yet I didn't see you post anything about those massive markups.

 

[Pop_Rivit]

Originally Posted By: zzyzzx
Originally Posted By: PR1955
No. I mean that these businesses many times pay MORE for these items than an individual can buy them for on Amazon.


Sounds to me that these businesses don't know how to shop!


Small businesses don't purchase direct from the manufacturer. Amazon does. Trying to compare the two is a vacuous comparison.

 

[JustinH]

I agree with Poprivit, the issue is not the price of said items. The price sounds about right for keeping a business afloat.

However, I have never heard of any of these devices in an HVAC system.

I had to look up each one and figure out what it was.

I have just been replacing air filters in my HVAC system, and pouring a little bleach in the drain lines once a month.

I read somewhere that the bleach can destroy the glue that they glue the drainlines together, so they recommend white vinegar.

So now I am using white vinegar.

Once a month I do this service.

Cost is pretty much nothing.

 

[DBMaster]

I work for Lennox. HVAC dealers, who are mostly small businesses, DO purchase directly from us through our Parts Plus stores. We sell finished goods (A/C, furnaces, etc) at them. We are the manufacturer. Other manufacturers have stores like ours. The profit margins on the stuff are actually pretty slim compared to other commodities. Most of the markup is coming from your dealer.

If you're not concerned about some minor cosmetic damage and do want to go the new unit route ask your dealer to look into "scratch and dent" items that are marked down substantially.

 

[Kruse]

You really can't compare your local HVAC shop against Amazon. Your HVAC dealer probably has a fleet of trucks that they have to maintain. They also make house calls, something that the medical profession gave up on decades ago. The HVAC shop also buys a lot of their parts as they need them and they need to buy them from places that are local and have them on hand. A shipment from Amazon will possibly take days to make it to your door. Your HVAC shop will also have to employ at least one (but probably several) person(s) who just answers the phone, even though this person probably does not do any repair on your system. When you get the bill from your local HVAC company, the wages to pay for the person you talked to are partially paid by the check you write. Your local HVAC company pays local taxes that help your school, police department, city services, etc., stay operating, something Amazon does not.
I will agree that HVAC shops can and do have a high mark up. Buy anybody who complains that the price quoted by the HVAC shop is X amount higher than Amazon has obviously never run a local business and would obviously be clueless in that line of expertise.

 

[sciphi]

Figure out where it's efficient to DIY and where it's efficient for the sake of time or workmanship to have a pro do it. DIY where possible to save for when hiring a pro makes more sense. The pros need to eat, too.

 

[HTSS_TR]

I don't have central A/C in my previous houses where I lived for 25 years, I have one now in my new house. What are the things they do for a "Tuneup" ?

I do change the filter once in a while(may be every 2-3 years since I don't have it run more than 50-60 minutes a week for 3-4 months).

When I have A/C on it is running well, i.e., the cool air coming out the vents cool down the house fairly quick, from 80F to 78F in about 8-10 minutes.

 

[hattaresguy]

In the Northeast if you have good filters they should be changed every spring and fall.

I do them myself because I have 12 of them and I buy them off Amazon for $40 +/- each. If I got lazy and paid my HVAC guys it would cost me $100 each at least.

It takes about 30 seconds a filter and provides me with a chance to check over everything in the utility room every six months.

Figure out where DIY'ing saves you money and do it.

 

[FSully1]

Originally Posted By: 2civics
I feel the same way. It's two tuneups or you void your warranty.


Void who's warranty? I've never seen a manufacturer warranty that states twice a year "tuneups" required.

 

[javacontour]

You do realize that even if they buy in bulk, those warehouses are not free.

Delivery drivers or shipping those parts to the tech isn't free.

Many look at the E-bay or Amazon price and think that's what they should be charged. They don't consider the labor and investment required to have the part in the warehouse show up for the service activity.

I do something similar for my employer. I do IT hardware and software service and installation. People always groan about the prices charged for enterprise disk drives and other parts.

What I tell them is you are paying for having the part in the Regional Stocking Location available to you at 2am, should your mission critical server go down and you need it.

If it's not mission critical, feel free to cancel your service contract and order grey-market pulls from E-bay or Amazon.

Originally Posted By: 2civics
Ironman- I get what you are saying. I believe the smaller companies are what you are referring to as mine is one of the largest in Indianapolis so they have warehouses scattered all over central Indiana and I am pretty sure they order in bulk. Big company reaping the rewards.

I do get that the smaller companies rely on up-selling though.
Some good info, thanks.