Wednesday, August 11, 2010

RIP OFF: Air Conditioning Repairs Rate Fixing.

I was burned once already by my Palm Coast ‘five star’ air conditioning sales and repair outfit. I always used “the best” when I was younger and my income and finances were much better. No more. My first clue was when they started a “duct cleaning” service. An almost worthless service for which they charged hundreds of dollars. It doesn’t take much research to discover how near useless that investment is.

Now, the air conditioner (heat pump) I purchased from them…the one that required their “special hand made air filters” that were premium priced (and looked like they were made by ten-year-olds)…has stopped working. I think it is a thermostat problem; but I am not sure. So I called them up to make an appointment:

$70.00 for a ‘service call’ to drive to my house. Then they want a ‘parts and labor’ payment payable on completion.

Well, I have to budget from my social security payment, so I asked what their labor charge would be. They don’t have a labor rate.  They charge a combined ‘parts and labor’ fee based on the part they replace.    Huh?

I used the yellow pages and called someone who was advertising a lower price for the drive to my house; the ‘service fee’. I could have sent a taxi for them and it would cost less. When asked their labor rate I got the same answer…”we charge a combined rate for the part needed and the labor to install it”. When questioned further, it turns out that MOST OF THE AIR CONDITIONING REPAIR OPERATIONS IN OUR AREA USE A NATIONAL ‘RATE BOOK’ TO ESTABLISH THEIR CHARGES.

This is a neat way to avoid head-to-head competition on rates, expertise and service. And it allows them to hire the cheapest, least qualified help, charge the “rate book” rate, and maximize their profits. I think it’s a monopolistic practice and a scam.

I am continuing to look for an individual with a good reputation who will give me a reasonable charge for coming to my house and diagnosing the problem-it’s not rocket science. I will pay a fair fee for that.

Then I should be able to decide about who will fix it at what price. This tightly coupling of the service call, the diagnostic exam and the fixed-price repair call into a "one call/one price/payable upon completion" policy is wrong.


I think I can find an air conditioning repair person to do travel to my house and do the diagnostic for a reasonable fee and then I can check my checkbook to see if I can pay for the work they say needs to be done or get a second opinion.

If you have a good Palm Coast air conditioner repair person who does not use the “national rate book” to establish rates, please drop me a comment..





RATE FIXING-A COMMON PRACTICE:  Most auto repair places use this same “rate book” monopolistic practice. But with auto repairs you can take your car to a shop, get your problem identified, and then shop for a repair price. With a plumbing or air conditioning or electrical problem in your home, you cannot.

I had one auto repair shop say I needed a new head gasket. Another said I needed a water pump. I finally took it to highly-recommended John who is US Auto in Bunnel. He said I had a leaky radiator and might also need a water pump, he had to look. He fixed the radiator and replaced the water pump after telling me what it would cost His bill was very reasonable and the car is running fine.

Gaaa! What if I had paid to have the head gasket replaced and the radiator still leaked!

"Made in America" is taking on a new meaning to me when it comes to repair services.  But No, I don't want the government to take over shopping for me!

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