Why is everything such a rip off?
I have had some rather bad luck this last couple of weeks including my AC unit dying, my patio doors disintegrating and now my garage door has sprung a spring. Since I operate my business with the highest degrees of ethics, I thought I could expect the same from the various contractors I contacted to fix my stuff. Uh....you can stop laughing now. What was I thinking?
From five different AC guys to my home warranty company (what a joke that is) to some of the dumbest garage door "sales" people on planet Earth, my experience has been enlightening to say the least. Here's what I've learned.
1. If their lips are moving, they are lying. These people couldn't tell the truth if their life depended on it. Their entire motivation is to sell you things you don't need at the highest possible price.
2. AC guys affiliated with home warranty companies are all about scamming you. I've learned that they don't make any money simply doing the repair. The only way they can make a living is to find other things to do - usually at insane pricing and for unneeded repairs.
For example, the first AC nit-wit wanted to charge me $20 per pound of freon (should be more like $10 - and is included in my insurance/home warranty) and $425 to install a new drip pan under my AC unit. He claimed my unit didn't have one and it was required by code. It turns out my unit HAS a pan - it's integrated into the unit. Plus, the actual cost of installing a pan is about $25.00. Nice.
3. Garage door repair folks think you are stupid. I work with sales people all day long. These guys come out here and try every low brow tactic in the book - from bait and switch and "don't tell my boss", to additional service charges and high pressure techniques. What bothers me is that the average homeowner probably falls for it most of the time. These companies are famous for running multiple, full page yellowpages ads - all with different company names - so you think you got three independent quotes. Instead you got three inflated numbers so you are mislead on the going rate. In case you are wondering it should cost about $150 to replace two springs.
No wonder clients are so skeptical. From buying cars to consulting services it seems like everyone is out to take advantage. Every time I have a need, I have to do hours of research just to protect myself. I know more than I'd ever want to about air conditioning and patio and garage doors. But it disgusts me that I have to operate this way.
When I talk to a prospective client I have to pay for the sins of every liar and scammer who came before me. Is this anyway to do business?
What keeps me going is the belief that being totally honest and transparent with customers will reap far more rewards over the long run than any amount of opportunistic thievery. Case in point: that first AC tech who wanted to take me for $505.00. I ended up buying a $5,000.00 system from a gentleman who has proven to be absolutely ethical and honest. That's a lost opportunity cost of $4,495.00 not counting the referrals he isn't going to receive.
Ouch.
From five different AC guys to my home warranty company (what a joke that is) to some of the dumbest garage door "sales" people on planet Earth, my experience has been enlightening to say the least. Here's what I've learned.
1. If their lips are moving, they are lying. These people couldn't tell the truth if their life depended on it. Their entire motivation is to sell you things you don't need at the highest possible price.
2. AC guys affiliated with home warranty companies are all about scamming you. I've learned that they don't make any money simply doing the repair. The only way they can make a living is to find other things to do - usually at insane pricing and for unneeded repairs.
For example, the first AC nit-wit wanted to charge me $20 per pound of freon (should be more like $10 - and is included in my insurance/home warranty) and $425 to install a new drip pan under my AC unit. He claimed my unit didn't have one and it was required by code. It turns out my unit HAS a pan - it's integrated into the unit. Plus, the actual cost of installing a pan is about $25.00. Nice.
3. Garage door repair folks think you are stupid. I work with sales people all day long. These guys come out here and try every low brow tactic in the book - from bait and switch and "don't tell my boss", to additional service charges and high pressure techniques. What bothers me is that the average homeowner probably falls for it most of the time. These companies are famous for running multiple, full page yellowpages ads - all with different company names - so you think you got three independent quotes. Instead you got three inflated numbers so you are mislead on the going rate. In case you are wondering it should cost about $150 to replace two springs.
No wonder clients are so skeptical. From buying cars to consulting services it seems like everyone is out to take advantage. Every time I have a need, I have to do hours of research just to protect myself. I know more than I'd ever want to about air conditioning and patio and garage doors. But it disgusts me that I have to operate this way.
When I talk to a prospective client I have to pay for the sins of every liar and scammer who came before me. Is this anyway to do business?
What keeps me going is the belief that being totally honest and transparent with customers will reap far more rewards over the long run than any amount of opportunistic thievery. Case in point: that first AC tech who wanted to take me for $505.00. I ended up buying a $5,000.00 system from a gentleman who has proven to be absolutely ethical and honest. That's a lost opportunity cost of $4,495.00 not counting the referrals he isn't going to receive.
Ouch.
posted by Pete Monfre at 2:18 PM
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