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  1. #27
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633
    I'm glad you know my business situation better than me. When you'd otherwise be sitting on your arse at home, $70 an hour plus travel gets you ahead just fine. Think of it as filler work like contract maintenance. Most companies have maintenance accounts that pay less than even $70 an hour.

    I know my costs and I am the tech. I don't take a lot of work from them. They fill in some gaps. Even when there are no gaps, I either work late or just put them off till I have time. Once my customer base is built up enough, I'll drop them like a hot potato.

    [Edited by Irascible on 08-02-2004 at 01:13 PM]

  2. #28
    Join Date
    Mar 2004
    Location
    NJ
    Posts
    1,214
    Irascible
    Member

    Registered: Mar 2002
    Posts: 910
    I'm glad you know my business situation better than me. When you'd otherwise be sitting on your arse at home, $70 an hour plus travel gets you ahead just fine. Think of it as filler work like contract maintenance. Most companies have maintenance accounts that pay less than even $70 an hour.

    I know my costs and I am the tech. I don't take a lot of work from them. They fill in some gaps. Even when there are no gaps, I either work late or just put them off till I have time. Once my customer base is built up enough, I'll drop them like a hot potato.



    I agree they help put food on the table, not bad to do business with when your new until you build up your base, but not the kind of thing you want to get sucked in full time. They kind of promote bad work habits as they are just looking to put the cheapest band-aid on the problem. But they fill in the gaps nicely and I have gotten customers who stuck with me long after they ripped up their home warranty contract.
    thehumid1-------I live in NJ, a state where it's free to come in but you have to pay to leave!

  3. #29
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,932
    Having had 13 years experience as a warranty contractor, I'd have to say that the profit you make from them is less than it appears to be at face value. I often would run into situations where they would pay to correct some of the problems with a system, but not all of them. So the system would invevitably fail again, and the warranty company expected me to correct the problems for free.

    Also keep in mind that when you receive an authorization from them to do the repairs at an agreed on price, it's not over yet. Once I gave them a price to replace a condensing unit, and they authorized it, and I replaced it. I'm driving back from the install and a supervisor from the warranty company calls me to renegotiate the price.

  4. #30
    Join Date
    Apr 2001
    Location
    Camel City, NC
    Posts
    6,232

    HW

    I'm trying to keep kinda quiet on this subject but, if the indoor coil is leaking, freon is added, coil is not replaced. Maybe that has changed, maybe not. Customer did not renew his warrenty.
    Be safe not fast. body parts don't grow back

  5. #31
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,932

    Re: HW

    Originally posted by selfemployed
    I'm trying to keep kinda quiet on this subject but, if the indoor coil is leaking, freon is added, coil is not replaced. Maybe that has changed, maybe not. Customer did not renew his warrenty.
    One of the HW's I worked for had an *unwritten* rule which wasn't in the contract. If the unit was less than 3 lbs low it was considered "routine maintenance" and not covered by the contract.

    Picture yourself explaining this to the ho.


  6. #32
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633
    Originally posted by midhvac
    I'm driving back from the install and a supervisor from the warranty company calls me to renegotiate the price.
    I hear ya. I'm waiting for something like that to happen. If they ever ask, the answer will be no. If they insist, they'll only insist once. They won't have opportunity to do it again.

  7. #33
    Join Date
    Oct 2001
    Posts
    90

    warranty cos.

    When I started my business a couple of years ago I signed up with about 8 hw cos. but have since dropped all but two. Because of this my business was almost instantly successful.
    My first year I grossed a little over 100K and netted 50k for myself. Two thirds of my customers are hw but that ratio is changing as I'm becoming more established. I have since moved into a shop, hired a tech and a part time office worker and just got approved for a 30k SBA loan.Yes the margins aren't great but if I work hard, effeciently and intelligently I can do ok. I make about 30% less doing hw work but a number of these hw customers have not renewed their warranties and now I am their hvac guy. I have run several hundred hw calls and almost without fail the hw cos. have treated me and the customers well. I intend to drop them in a year or two because the margins aren't that good and I prefer not to have the extra hassle with paper work, waiting to get paid, on hold, etc., but it's been a great way to kick start a business.

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