Annual Service (I need pricing help)

B. Tice

Unbelievable.......I should move south. I credit you Guys to death for getting good money, but NO WAY could I get that here.

Jim_47

Annual Service (I need pricing help)

Ladies and Gents I need your help
I am an independant heating contractor in upstate NY. Recently I have found that my pricing of my annual service (cleanout) of Oil fired equipment is way off the mark in reference to the OIL company prices. I found this out thru the local VoTech as well as feed back from the large increase of new customers.
Let me tell you that every cleaning takes between 75 & 90 minutes and sometimes I am there for two hours. Now I am usually a flat rate guy when it comes to the cleaning. this is where I get my new customers, but this time I am gaining customers as well as loosing money and time.
I went to remove the stack pipe from an "oil company" customers boiler and they asked what the HELL I was doing. I told them that every cleaning gets a brushing and vac job and they said they were not paying for the deluxe service they just wanted the basic. I had to explain the entire service is preventive and diagnostic and will also include changing of consumable parts, as well as a cumbustion analization of the flue gases and efficiency test. I think I got a customer for life! THe stack had no hole for the testing of exhaust, and when I did test it was pumping a solid 340ppm of CO with a CO2 of 14.3%. I was able to get it down to 0 ppm CO and 11.9% CO2 with an eff. of 82.7% Not bad for an 15yo boiler. Please help, What are you getting for the "DELUXE but minimum in my book" cleaning??
thanks

Online Sheriff \"Murph\"

EVERY COMPANY...........

> Ladies and Gents I need your help I am an

> independant heating contractor in upstate NY.

> Recently I have found that my pricing of my

> annual service (cleanout) of Oil fired equipment

> is way off the mark in reference to the OIL

> company prices. I found this out thru the local

> VoTech as well as feed back from the large

> increase of new customers. Let me tell you

> that every cleaning takes between 75 & 90 minutes

> and sometimes I am there for two hours. Now I am

> usually a flat rate guy when it comes to the

> cleaning. this is where I get my new customers,

> but this time I am gaining customers as well as

> loosing money and time. I went to remove the

> stack pipe from an "oil company" customers boiler

> and they asked what the HELL I was doing. I told

> them that every cleaning gets a brushing and vac

> job and they said they were not paying for the

> deluxe service they just wanted the basic. I had

> to explain the entire service is preventive and

> diagnostic and will also include changing of

> consumable parts, as well as a cumbustion

> analization of the flue gases and efficiency

> test. I think I got a customer for life! THe

> stack had no hole for the testing of exhaust, and

> when I did test it was pumping a solid 340ppm of

> CO with a CO2 of 14.3%. I was able to get it down

> to 0 ppm CO and 11.9% CO2 with an eff. of 82.7%

> Not bad for an 15yo boiler. Please help, What are

> you getting for the "DELUXE but minimum in my

> book" cleaning?? thanks



MURPH' (sos)

Online Sheriff \"Murph\"

EVERY COMPANY...........

Jim every company is different, many different criterias go into a service companies overhead. that being said you have to "crunch" yo numbers to come up with a proper selling price for the service that you do !! Please do not feel that you have to charge the same as other companies if your work is superior, then your pricing should reflect that. there are many sites on the net and books on the subject, but most importantly ,know what your cost are before you put a figure on your cleanings !! E-mail me if you would like and I can send you some links that cover these topics (dan has a few great books in books and more also)


good luck!!
murph' (SOS)

Unknown

Jim based on the work

you say you are doing find out what the other guys are charging and add 25%. It seems to me if you are that thorough you deserve to be paid top dollar. I do not think you will lose any work. Do a good job of selling what you do and emphasis on safety and comfort is always a plus for customers. I used to sweep the cellar after every job around the boiler and wipe down the boiler, I always left it looking better than when I got there and pride myself on always going the extra mile on service and maintenance. It pays off in the end. Go get em kid you are doing a great job.

Online Sheriff \"Murph\"

WITH ALL DUE RESPECT ........

TIMMIE ,and you do deserve it, how do you know the other guys are charging the right prices?? there is many companies doing service as a sideline to sell feul or replacement funaces !! it is very common in my area and i am sure all across the land !!


murph' (SOS)

Dan S.

Pricing

I live in NJ and I charge on a first customer basis basically
a service call around $75.00. The difference though depends if
its just ROUTINE MAINTNANCE or smoke-pipe replacing, plugged boiler, plugged chimney etc. etc . It then goes more time and material. The fact is if you keep your customers and you are the only one doing the work year after year it going to get easy routine because YOU know whats going on. Cost of living in your area is also important on your price..

Floyd

The only way to flate rate a cleaning...

would be to figure basically a worst case scenario and price things that way....
If this was a perfect world and all things were equal allt he time it would work.....
however,

things can and do go wrong and you should be able to CYA wthout ripping off
the people that don't deserve it!!!!

Figure your costs per job and charge accordlingly and don't give a rip about
what the other guy's are charging!!!!!

heatboy

The first thing to do is.........

forget what anyone else charges for whatever services they provide. You must know your costs or you wouldn't be in business, right? Preventative service is, to my business, a break-even deal. I do it to get back in the home every year and let them see me. My base price to service a boiler, whether it be oil or gas, is $210 plus consumables. Much higher than everyone else around here, but that doesn't matter. Gotta' cover costs.

Warm Regards,

hb

"Expert in Silent Warmth"™

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Bob W._2

Just had my boiler serviced....

gas boiler, no heavy cleaning. Charge for 1 hour was $60.00 for the man hour, $55.00 base truck charge for the trip (all of 2 miles) and consumables. I'll bet they make money doing it that way, especially with a day full of small similar jobs.

tim from Reed Wright

heatboy's routine charge.

heatboy, I think your pricing is right in where the market should be for boilers. We have been in business since 1938 and we have one of the best reps in the business. I feel a thorough routine maintenance will take appx. 2 hrs. At our rates that would be appx. 183.00 + tax + parts. If more than the norm, it can go up from there. If the boiler has been ignored for more than 2 yrs, this can go up by $100.00 - 200.00 depending how dirty it has gotten. Great to hear the different ideas. Thanks, Tim

heatboy

Thanks, Tim.

If you aren't going to breakeven on things like preventative maintenance, don't do them. No such thing as making it up with volume. How anyone can start the truck and service a boiler for a $100 is beyond me, but I see it all the time. I wonder how many guys actual clock the meter, check manifold pressures, pull the burners on a gas boiler, confirm lockout and stick their Testo/Bacharach in the exhaust. Or on oil, check fuel pressure, measure cad cell resistance, confirm lockout and stick their Testo/Bacharach in the exhaust.

I was called in the other day to set-up a Viessmann Vitola with a Riello Gas burner that has been running for 4 years and has never had a combustion test. I meausred the exhaust and registered 0% excess air and 6,500 PPM CO! The boiler is rated for 170K input and was running at 240K input. How's your gas bill?

Every time I am told I charge too much and I can't get that kind of money, I just give 'em a big smile.

Warm Regards,

heatboy

"Expert in Silent Warmth"™

610.250.9885

To Learn More About This Contractor, Click Here to Visit Their Ad in "Find A Contractor"

Mad Dog

gotta get atleast...................................

$250 for the stuff your doing...if they think its too much move on there are plenty out there who know a good job and will pay mad dog

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Unknown

Murph I would be looking

at other local reputable outfits who are doing similar service. You have to really research this and do some cost comparison. I am sure as we all know there are going to be those jobs you flat rate that you run into trouble. You have to either eat that one or make your flat rate limited to a time and certain limit as to what you do. Anything beyond that would be parts and labor.

Unknown

I recommend

to those that ask that a good thorough check especially on gas forced warm air systems (inspect heat exchanger) should take no less than two hours. A good price to me is $100 per hour.