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Opinions wanted on diagnostic charge

Ken C.
Ken C. Member Posts: 267
The company I work for is flat rate. The dispatcher tells prospective customers that we have an $XX.00 trip charge to go to their house. There is no mention by the dispatcher of any other charges. However, if I go to a no-heat call, I am required to charge them a diagnostic charge, which is about twice the amount of the trip charge. We will waive the diagnostic if they buy a preferred service agreement (which is about the same cost as the diagnostic charge). Most of the time, the customer feels he/she has been misled, because no mention was made of a diagnostic charge, so they (understandably) assume the initial charge quoted includes an assessment of why they have no heat. Previously, I would do a basic, visual check for common causes of no heat as part of the initial trip charge. If I didn't find a problem in 5-10 minutes, then I would mention a diagnostic charge. Now, the owner tells me not to even go into the basement without getting them to agree to a diagnostic charge. So I tried that today, and a customer had a real problem and refused to pay anything (and I didn't get paid anything for that call either, since I'm on commission). I understand the owner's point that we should get paid for finding the problem (after all, on some calls, it can take longer to find out what the problem is, than it does to actually fix it). However, I think it would go a long way toward customer relations if they were informed of the diagnostic fee by the dispatcher. I feel like I'm caught in the middle when I have to surprise the customer with this diagnostic fee. I'd appreciate any thoughts/opinions. Thanks.

Comments

  • Boiler Guy
    Boiler Guy Member Posts: 585
    How Much

    I am inclined to agree with you. I know if someone tried to "hold me up" like that I would be calling BBB real quick.
    We advise the customer of a minimun flat rate of a 1 hour eqivalent which includes travel time, vehicle charge and up to .5 hr of diagnostic time.
  • i agree,

    a trip charge is just that,,,travel...and a diagnosis charge is most appropriate...however..the dispatcher should be up front about it..if the customer doesn't ask thats one thing, but if they do, then the only appropriate answer would be X amount for diagnosis, X amount trip charge..then we will let you know what it costs to repair/replace some item if need be...ive found most customers appreciate up front honesty..those that think your to expensive you dont want to work for anyhow..right?
  • Paul Pollets
    Paul Pollets Member Posts: 3,663
    Charges...

    I like to give the technician the option of charging a diagnostic fee...and tell the customer of the fees when booking the call. Then there is not an argument for any charges. We always charge a trip fee, except to customers who have a maintainence agreement.

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  • jim lockard
    jim lockard Member Posts: 1,059
    Trip/diagnostic

    Do you want to build a repeat customer business? If so then you need to give your customer a product. Pulling up to the door with your hand out is not my way of doing business. Just as you have a flat rate for the repair, have a flat rate for the door and diagnostic. The way I handle this is with a flat fee for up to the 1st half hour on site. Thats your door and a simple diagnostic and we go from there. If the furnace is in the attic or the crawl I charge a fee vs. sitting on the basement floor. J.Lockard
  • Dan_12
    Dan_12 Member Posts: 9
    service call charge

    We call it a 'service call charge' which includes trip and minimal diagnostic time. We then have a extended diagnostic time charge if needed. Also are flat rate, but call it 'up front pricing'.
  • Robert O'Connor_7
    Robert O'Connor_7 Member Posts: 688
    Trip charge

    New customers without service agreements get a trip charge, period. If they deside to use us, we'll apply it to the bill. One thing that we NEVER do is TELL THEM WHATS WRONG. Write it up, and get them to sign. If you don't collect $$ and you figure out the problem, and you give em a price. What makes you think there not gonna call some other company and use your price against you. Like every thing else their are always exceptions, After you hook um their less likely to call someone else. New installs and boilers that aren't broke we'll estimate for free. Everthing else has a price. Why troubleshoot for free?? boc
  • Joe_13
    Joe_13 Member Posts: 201
    Springing the diagnostic charge

    on them after you get there and only mentioning the trip charge on the phone sounds shady to me. If you're good and honest, why not lay out the prices up front? Here's a good example of why the public doesn't trust the trade and wants to DIY everything.
  • Kevin_12
    Kevin_12 Member Posts: 31
    Flate rate

    Where I work we charge a diagnostic charge only, no trip charge at all. you diagnos the furnace or what have you then give the customer the price for repair. Some times it can take an hour to diagnos the unit, but other times its just a few minutes, like say a bad hsi. Intermittent problems are the worse to figure out.
    the problem with commision pay or as we call it task pay is that the tech would be rushed to get out of there, and not build a relationship with the customer. The tech would be less likely to try and sell accessorries and such.
  • Bruce_6
    Bruce_6 Member Posts: 67
    ever called

    roto rooter???

    they are very direct and up front. They tell you their charges before you can tell them what you need. its direct, but it works, and weeds out the tire kickers!

  • Ken C.
    Ken C. Member Posts: 267


    You make some good points, but I'm curious, does your company tell the customer about any diagnostic charges when they call, or do you tell them after you show up on site? I have no problem with a diagnostic charge; I just think my company should tell customers about it over the phone, so I don't have to surprise them with it when I arrive at their house.
  • jim lockard
    jim lockard Member Posts: 1,059
    Bob

    In my area there is a lack of service people. I think its really mean to not tell your full price in advance. To drive all the way to a customers home then demand a door fee before you will pass thru then what another fee, to do other then stare at the furnace. I think people understand that it costs to get to the site and to stay at the site. But most repairs are fairly simple R/R the HSI is not that hard. I know attic and crawl for which I charge a seperate fee. J. Lockard
  • GaryDidier
    GaryDidier Member Posts: 229
    Fees

    My company charges a flat fee for a service call and this includes the first half hour of labor. Repairs are then flat rate. Never a problem with customers and We get thanked often for being there for them.
    Gary from Granville
  • B. Tice
    B. Tice Member Posts: 206
    Charges

    I would say that the trip fee and then another fee is not good. Too confusing. I get a service / diagnostic fee, then a flat rate repair.
  • John R. Hall
    John R. Hall Member Posts: 2,245
    Nothing is free

    I doubt you'd find a doctor who would give you a free diagnosis or an auto mechanic who will give your engine a "look-see" for free. You folks are all professionals who have spent years crafting your trade and developing relationships. People will pay you for your opinion -- especially those aware of your reputation. Free check ups are for the lowballers and "Dateline" subjects. Making money is not a crime -- it is your right and you deserve it.
  • Tony_8
    Tony_8 Member Posts: 608
    I charge

    An hour minimum plus a nominal drive-up fee. Most calls are handled in that time or less. If not, it's hourly plus the drive-up and parts. Quite often I quote the repair price once it's diagnosed, including the diagnosis. If they want to shop, I get my minimum anyway. If I get the job, I credit the diagnosis against the quoted price. I get paid once for what I do and for almost everything I do. I NEVER quote a repair on someone else's diagnosis. I WILL quote a replacement unit for free if that's what they really want and they seem honest, etc. I won't however, dig into the causes for the need of replacement for free. Take the other guy's word for it and live with it. If you want my professional opinion you pay.

    My favorite response for the question of a "free estimate" of a inoperative piece of equipment is " Does your Dr. give you a free estimate to cure your illness?" Works for me :)

    I do tell my charges for such over the phone if asked, but most don't ask, they want it fixed ASAP. Most of my work is repeat and referral as I've been "in it" for 20 yrs and have an excellent reputation. It pays to be honest and "particular" with your work.
  • Einsiedler
    Einsiedler Member Posts: 61
    I am surprised

    On a no heat call, if you are going to charge the "trip" charge simply for going there... why were you going there in the first place? to say hello, show off a smily face?

    You were asked to goto a no heat call. The service charge for this visit should entail; travelling there, finding the problem, & either fixing it or giving the customer an estimate. Period.

    If you bought say a large freezer and asked the store about "delivery" and was told there is a delivery charge of $xx.00. ok. now the time comes, the truck pulls up to your yard and sits there... when you ask him to unload the unit, he advises there is an "unloading" charge + an additional "cartage to door" charge. Think your being cheated??? - you bet. Hello?
    Lets drop all this "creative-criminial-business-practises" and get the heat on!

    Sounds like your boss is borderline criminal & should get into another business, & you my friend should not be working on commision, thats for people who sell appliances & houses. You should be paid hourly with bonus's for after hours calls.


    Sometime this industry & the way some people approach things are beyond my comprehension.

    Still learnin & yearnin..
    Einsiedler





  • sounds like

    sounds lik he works for Union Energy
  • Ball Valve
    Ball Valve Member Posts: 18


    Where I work we charge an hourly rate, port-to-port. All of our customers know this when we show up. Generally one hour is considered minimium but depends on the tech, for a quick fix to a good customer we usually sweep the whole call under the carpet. This goes miles for customer relations. The only exeption to this is for preventive maintenance which is bid per peice of equipment. I have been able to drum up alot of service jobs at a local university by using an hourly rate, not to exceed XX hours, as opposed to a flat rate. This is especially effective in small plumbing and hvac repairs.
  • Mad Dog
    Mad Dog Member Posts: 2,595
    I did service for a company that did things that way

    They would fail to tell the customers the charges and I would be thrown to the wolves. After a while, you just get good at selling yourself, and most everyone paid. Once every six months, someone would refuse, but then then the office took care of that. In our company, there are no hidden charges. Do some people hang up when we tell them ? sure! Do alot of them sigh? sure! But at least we don't waste each other's time. It avoids alot of headaches at the jobsite. One reason I love flat rate is the upfront pricing - take it or leave it. Mad Dog

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  • jim lockard
    jim lockard Member Posts: 1,059
    Ball valve

    I am with you on the hourly and I can hang with you on the flat. Once you put the not to exceed on the hourly your killing me as you just gave up the farm. My thoughts J.Lockard
  • jim lockard
    jim lockard Member Posts: 1,059
    The golden rule

    do to them as you would have them do to you. Now call them at 7pm tell'em its ten degrees out and you have No Heat 3 kids ,ageing parents whatever.
    Or what if Mcdonalds had you order the bread, meat, and cheese seprate when all you want is lunch. Never forget "everything speaks" A simple phone statment "This is our fee to come to your home and diagnose the problem.Once we have a diagonsis you will be presented with a price for the repair or replacement as warranted Best Wishes J.Lockard
  • Ball Valve
    Ball Valve Member Posts: 18
    Jim

    Did not mean to sell the farm, but with some of our customers they need to get an approval for the job from their boss or supervisor. Not to exceed is a good way to give a firm number, and still look like a hero by coming in under estimated time. Most of our customers are businesses or large facilities with bean counters that thrive on things that look good on paper.
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