Here's an ethics question

Bob Murray

Or it could be a simple business question as well.

Scenario: Water heater replacement quoted prior to replacement with price agreed upon. I didn't look at the serial number to see the year (I've already beat myself up for that, so please don't). And ...yes, it is still under manufacturers warranty. I am not the original installer.
Customer is very happy he is going to save money. He has yet to find out how much.

The question is, do I simply deduct MY cost for the water heater and pocket the difference, or deduct the SELL price of the water heater and take it as a lesson learned?

Mad Dog

If we didn't install it.........................................

it is up to the homeowner to deal with any necessary paperwork et cetera - we need to be paid as if we were coming in on an after-warranty replacement. Don't feel bad, I usually don't check the numbers either - If its leaking, its out. Mad Dog

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Tony_8

What I do

I charge for the labor and materials to do the change-out plus a half hour for warranty paperwork. It wouldn't be right to make mark-up on a warranteed item whether you're the original installer or not.

Besides, who's he going to remember for treating him right ? A few dollars now may cost hundreds later in lost opportunity and reputation. And... The Golden Rule

Grumpy_2

Here's what we do.

> it is up to the homeowner to deal with any

> necessary paperwork et cetera - we need to be

> paid as if we were coming in on an after-warranty

> replacement. Don't feel bad, I usually don't

> check the numbers either - If its leaking, its

> out. Mad Dog

>

> _A

> HREF="http://www.heatinghelp.com/getListed.cfm?id=

> 299&Step=30"_To Learn More About This

> Professional, Click Here to Visit Their Ad in

> "Find A Professional"_/A_

Grumpy_2

Here's what we do.

In one of my affiliated companies, we change about 1600 water heaters a year. When it is a warranty issue on one of OUR installs, it is handled this way: Customer pays for a complete installation of the new water heater - labor and material charges. Since all water heaters are pro rata on replacement, we then issue a check to the customer for the amount of credit issued to us by the manufacturer once we receive their (the manufacturers) notice of credit issuance. We however, issue a credit voucher to the customer for $50 to be used against future replacements when required. End result, customer is made whole again, has a credit of $50 to use on the next replacement, and we are guaranteed to have a repeat customer. If it is a tank that we are not prime installation contractor on, we issue the same credits as above, and of course solicite a full mechanical maintenance agreement on all of the existing equipment. About 40% closure rate on the maintenance contract offerings. The money is out there guys, just go get it!

Ken D.

Warranty

I agree with Tony. Do the right thing. If the customer should ever find out, your name is Mudd. If you are totally up front he will remember how upstanding you are and tell others. I would use the wholesale price plus tax.

Grumpy_2

Here's what we do.

In one of my affiliated companies, we change about 800 water heaters a year. When it is a warranty issue on one of OUR installs, it is handled this way: Customer pays for a complete installation of the new water heater - labor and material charges. Since all water heaters are pro rata on replacement, we then issue a check to the customer for the amount of credit issued to us by the manufacturer once we receive their (the manufacturers) notice of credit issuance. We however, issue a credit voucher to the customer for $50 to be used against future replacements when required. End result, customer is made whole again, has a credit of $50 to use on the next replacement, and we are guaranteed to have a repeat customer. If it is a tank that we are not prime installation contractor on, we issue the same credits as above, and of course solicit a full mechanical maintenance agreement on all of the existing equipment. About 40% closure rate on the maintenance contract offerings. The money is out there guys, just go get it!

RELY

I Agree

> Or it could be a simple business question as

> well.

>

> Scenario: Water heater replacement

> quoted prior to replacement with price agreed

> upon. I didn't look at the serial number to see

> the year (I've already beat myself up for that,

> so please don't). And ...yes, it is still under

> manufacturers warranty. I am not the original

> installer. Customer is very happy he is going to

> save money. He has yet to find out how much.

> The question is, do I simply deduct MY cost for

> the water heater and pocket the difference, or

> deduct the SELL price of the water heater and

> take it as a lesson learned?

RELY

I Agree

with Tony and Ken you will get a person for life

S Ebels

Simple

It's the Golden Rule my friend. How would you like to be treated and who's the guy going to remember when he needs a boiler or a furnace or A/C?

Bob Murray

This is where my instincts were leading me. I will take it on the chin, have a happy customer, and make it up somewhere else. It is a VERY small town here.

Thanks for your input folks.

Bob