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  1. #14
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633

    Norm

    I actually negotiated a deal where I often get paid more by the warranty company than I would have by the customer. They have this county broken up into four sections. I don't charge them a trip charge for my immediate city. But for some reason they have a penchant for sending me to parts of the other three areas, much of which is 20 minutes or less away. For example today I had a no cooling call from that warranty company that was a 15 minute drive at most. When I got there it was working fine. I had a pretty good suspicion what it was but couldn't confirm. A full priced customer would have paid X amount. But with the trip charge, the home warranty company owes me X + $20. Given all the trip charges I've been imposing, I'm not making much less than I would have otherwise. When you factor the cost of advertising that I don't have to spend on these customers, it isn't bad.

    It's nice also in the sense that they provide me a source of service calls. I was a full time service man and didn't care for install. Running a one man shop now means way fewer service calls and a lot more installation work. Since I negotiatied in my contract that I would not replace furnaces (literally couldn't make money at their rates), they basically provide me with nothing but service calls.

    And of course the original reason why a lot of new businesses deal with home warranty companies: new customers. I've made numerous new contacts. Two different realtors that I met through warranty work have already referred me out to their clients and coworkers. It's not hard to make them happy. I seem to get a lot of second opinion calls. When the customers have had to deal with the utter bufoons that the warranty company dispatched before me, they customers think me an HVAC god (little "g").

    It's only been six months. I'm sort of waiting for the excrement to hit the fan. But it hasn't so far. I realize my situation is the exception. But I wanted you to know it's not all bad out there.

    [Edited by Irascible on 08-01-2004 at 02:39 AM]

  2. #15
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633

    Chris

    Believe it or not, I've never been asked why it was so expensive. I call the authorization department; they spit out a series of questions for me to answer as fast as is humanly possible; they give me my autho number and say goodbye. There's been only one denial for coverage so far (for good reason) and coverage has been extended when it shouldn't have.

    Yes, yes I know. I'm living out what could be called a home warranty company fantasy. It will likely come to an end some day. And I know that most warranty companies attempt to wiggle their way out of paying on any technicality they can. Mine is likely to be the same way in many instances. But as far as my situation goes, I swear I'm telling the truth!

  3. #16
    Join Date
    Jun 2001
    Location
    Michigan
    Posts
    12,077
    Who the hell would insure a 30 year old system? I have no clue how these outfits work.

  4. #17
    Join Date
    Jan 2003
    Location
    Beaufort, SC
    Posts
    2,821
    If you can afford to work for $ 65.00 an hour go for it. If you can wait 60 to 90 days for your money go for it. If you like pissed off homeowners because they won't pay to replace as they promised go for it. If you go for it, " Here's your sign".

  5. #18
    Join Date
    Apr 2001
    Location
    Camel City, NC
    Posts
    6,232

    HW

    I get calls from folks with them. Sorry I say,you can not pick your contractor. You'll have to call someone they use.
    Be safe not fast. body parts don't grow back

  6. #19
    Join Date
    Oct 2003
    Posts
    2,866

    Re: HW

    Originally posted by selfemployed
    I get calls from folks with them. Sorry I say,you can not pick your contractor. You'll have to call someone they use.


    Yea well you dont need the call anyway. All you wanna do lately is cruise around in your boat, pull snakes out of the trees, wrestle alligators while singin bobolew to your wife. With all that goin on you still manage
    to keep that dam hat white.
    Anyway you could lead those potential customers my way if you were a true ambassitor of the trade.

  7. #20
    Join Date
    Apr 2001
    Location
    Camel City, NC
    Posts
    6,232

    Don

    I do, I know your on the list of approved contractors. Ya'll do quite a bit of work for them I think.
    Be safe not fast. body parts don't grow back

  8. #21
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,919
    Originally posted by Irascible
    I love AND hate. Though I do my best to act impartial.
    I always try to act impartial while making love

  9. #22
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633
    Too much information!

  10. #23
    Join Date
    Sep 2001
    Location
    East Stroudsburg, PA
    Posts
    13,215
    Originally posted by hvac45
    If you can afford to work for $ 65.00 an hour go for it. If you can wait 60 to 90 days for your money go for it. If you like pissed off homeowners because they won't pay to replace as they promised go for it. If you go for it, " Here's your sign".
    LOL.

  11. #24
    Join Date
    Feb 2004
    Location
    Midwest
    Posts
    9,919
    Originally posted by hvac45
    If you can afford to work for $ 65.00 an hour go for it.
    That's a shock. I dumped them a few years ago (after 13 years with them) after they sent me a sase letter stating that if I'd work for the prices in the enclosed flat rate price list, they'd send me a lot more business. After reading the flat rate price list, I realized that they were offering less than the hourly wage of an hvac tech, including benefits.

    I threw the list in the trash and never heard from them again for several years. They call me about once a year inviting me to come back, and the answer is always *NO*.


  12. #25
    Join Date
    Mar 2002
    Location
    Concord, CA
    Posts
    2,633
    They pay me $70 an hour (minumum one hour paid on all calls) plus trip charges for roughly 75% of the county. All but two invoices were paid within 30 days. Considering the newness of my business and therefore the gaps in the schedule, I'll take it. I only average two or three calls a week anyway. Apparently $70 an hour plus trip charges is more than they pay the "preferred" contractors.

  13. #26
    Join Date
    Jan 2003
    Location
    Beaufort, SC
    Posts
    2,821
    At $ 70.00 an hour you'll never get ahead, go figure your actual costs to run that truck 5 years, insurance, fuel, tech ect, don't forget to factor in the cost of the new van to replace the one you wore out. Plus the profit off the truck to cover its share of overhead, you will be surprised.

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