On Tue, 09 Dec 2003 20:18:33 -0700, DH in Denver
wrote:

My Kenmore refrigerator quit cooling. I called an appliance repair
company. The tech said I needed a new "pc board." I don't know why he
called it that, except it sounds more ominous than "defroster timer,"
which it really was, and was even so identified on the box that he
brought the next day.

Some of the new timers are all electronic. The older ones are usually
black or white plastic and just a mechanical timer.


Anyway, he didn't have that part with him; said he'd return the next day
with it. Before he left, I had to pay him $159.19 in advance for the
part. When I asked him how he came up with $159.19 (he hadn't looked a
any lists or made any phone inquiries), he said he remembered the price
from the last time he had needed the same part.

Before he returned the next day, I checked with Sears and two other
parts store in town and found that I could have bought the
part--retail--for between $55 and $62. (I knew the part number, because
Sears provides parts lists for almost everything mechanical it sells.)

So, he was charging me almost 3 times the retail cost for the part. I
assume he could have bought it even for less than my retail cost.

If they have a house account he probably paid around $40.00 for it.

QUESTION: is this typical of repair companies to charge exorbitant
prices for parts?

If that $159 was including labor you did ok. If not (and the part you
inquired about was the correct one at $55 your cost) you got hosed.

In most pricing books the "list price" is the manufacturers suggested
price on what the customer should be charged. With an account in good
standing the company will usually pay half that list price. If he
paid $40, a reasonable price to charge would have been $80.00.

In my line of work (commercial HVAC) I change the markup depending on
the price of the part. If it's a low priced part it will be doubled.
More expensive parts get a reasonable 30% markup.
Even if I truly despised a customer I would never jack the price up
4X.