Bubba wrote:
On 19 Feb 2006 16:55:33 -0800, "Stretch" wrote:

Now where in the hell are you going to find a service company that is
going to change a contactor and charge you $20 or $30 for that part +
a minimum labor charge? Nowhere! because if they do they wont be in
business but about a week or two. These trucks dont roll, salaries
dont get paid, health insurance doesnt get paid, gasoline doesnt fill
the truck, liability insurance dont get paid and the tax man wont get
his share by someone collecting $20 for a part and a minimum labor
charge.
Nice try though.
Bubba



Sorry Bubba, but I do that. So do some others. We charge $68/ hour.
The contactor I sell for about $20.00. We have a half hour minimum
charge for residential work. We have no trip charge. We are shooting
for 10% net pretax profit, which we have exceeded the last three years.
If I went on that call and it was a bad contactor, the charge would be
$34.00 labor + $20,00 Part = $54.00 total. Tax is included in the
part. By the way, I just bought a new 2500 Chevy van, paid 1/3 down.
We have more diagnostic tools than many larger companies that I know
of. We carry more parts than most any other company in our service
area. We are profitable.


Stretch,
Sorry bud but No freakin way. You have another company or something
subsidizing your ridiculously low prices. $54 to replace a contactor??
I used to charge that about 12 years ago and Im NOT kidding. No way
would your business survive with that kind of pricing.
Bubba

The OP said the outdoor unit ran constantly while the indoor blower
cycled. That sounds like a stuck contactor. You may free it up for a
while, but it will likely re-occur.

Stretch



Bubba,

You have not seen my books, so how can you say what my rate should be.
In your area, the labor rate may be twice what it is in my area. You
would have to charge more. The cost for rent/mortgage may be higher on
your building. You may run a sloppy operation. Any number of thjings
could run your costs up higher than my costs. You see how often people
post to this group asking prices. The answer is always: "Depends on
where you are." You assume too much. No one subsidizes me. I always
pay my bills on time and take fast pay discounts where offerred.

I know one contractor in my area charging over 2 times what I charge,
and he is not worth it. I also know contractors chargimg less. One
inherited his home and shop from his father. That keeps his costs
down. I can't charge what he does and stay in business, but he makes a
profit because his overhead is low.

But at the same time, if it takes longer than 1/2 hour to diagnose and
replace a stuck contactor, your techs are slow. What you charge for
travel depends on what it costs you on the average and what profit you
must have.

When we moved here to Myrtle Beach SC from near Pittsburgh PA, our
rates dropped because our costs and overhead dropped. Labor rates were
1/2 what we were used to.

As the building boom here continues, our costs and rates are likely to
go up. Don't assume it is the same here as it is where you are,
because it is not.

That is all I have to say.

Stretch