A CONVERSATION ABOUT PERCEIVED VALUE

A customer asked a contractor friend of mine how much it would cost to do this project.


My friend gave him a proposal: $4500

The customer responded: That’s seems really high.

My friend asked: What do you think is a reasonable price for this job?

The customer answered: $2500 maximum

My friend responded:  Ok, then I invite you to do it yourself.

The customer answered: I don't know how to.

My friend responded:  Alright, then how about for $2500 I'll teach you how to. So besides saving you $2000, you'll learn valuable skills that will benefit you in the future.

The customer answered: Sounds good! Let’s do it!

My friend responded: Great! To get started, you are going to need some tools. You will need a chop saw, table saw, cordless drill, bit set, router, skill saw, jig saw, tool belt, hammer, etc..

The customer answered: But I don't have any of those tools and I can't justify buying all of these for one job.

My friend responded: Ok. Well then for an additional $300 I can rent my tools to you to use for this project.

The customer answered: Okay. That’s fair.

My friend responded: Great! We will start the project on Monday.

The customer answered: I work Monday through Friday. I’m only available on the weekends.

My friend responded: If you want to learn from me then you will need to work when I work. This project will take 3 days so you will need to take 3 days off work.

The customer answered: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!

My friend responded: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.

The customer answered: What do you mean by that?

My friend responded: Doing a job completely from start to finish includes time spent to plan the project, pick up materials, travel time, gas, set up time, clean up, and waste disposal amongst other things. That’s all in addition to the actual project itself.  And speaking of materials, that’s where we will start on Monday so I need you to meet me at the lumberyard at 6:00am.

The customer answered: At 6am?!! My work day doesn’t usually start until 8am!

My friend responded: Well then you’re in luck! My plan is to start on the deck build by 8am. But to do so we have to start at 6am to get materials picked up, loaded and delivered to your job site.

The customer answered: You know, I’m realizing that a lot more goes in to a job than what a customer sees in the finished project. Your proposal of $4500 is very reasonable. I would like you to handle the project.

CONCLUSION:

When you pay for a job, especially a custom job, (whether it’s a physical project or digital project) you pay not only for the material and the work to be completed. You also pay for:

  • Knowledge
  • Experience
  • Custom Skills
  • Tools
  • Time to plan
  • Time to prepare
  • Professionalism
  • Work Ethic
  • Excellence
  • Discipline
  • Commitment
  • Integrity
  • Taxes
  • Licenses
  • Sacrifices
  • Liabilities
  • Insurance

If you request a proposal for custom work to be done, please don’t disrespect a service provider by trying to get them to lower their prices.

If their proposal exceeds your budget, there’s nothing wrong with getting other proposals.

Just remember.. you get what you pay for.

  • SERVICE PROVIDERS: Know your worth and be confident in it.
  • CONSUMERS: Recognize their worth and be respectful of it.

Why You Should Support Small Family Owned Business

Small business is – quite frankly – big business. The Small Business Administration identified that there are more than 28.2 million businesses operating in the United States as of March 2014, with about 63% of new jobs being created from small businesses between 1993 and mid 2013. Of these 28.2 million businesses, most are "self-employed" – making up about 3/4 of the U.S.'s total businesses. Meanwhile, approximately half of small businesses survive five years or more, many of which make up your local coffee shops, favorite local boutiques, preferred chiropractor or local service company.


When you consider how many small businesses surround you in your everyday lives, it is impressive to think about the amount of time, commitment and labor these hard working individuals contribute to make their businesses both come to life and stay alive.

Customers assume that pricing will automatically be higher at a small service company vs. a corporate owned service company, as well as they dismiss the perks that many small businesses offer such as customer care, inventory assortment and community support. However, did you know that many of these misconceptions about small businesses are just that… misconceptions?

Smaller service companies have the same access to vendors as big box stores do, therefore if you need an item and it's not available in their store, it's likely they can get in touch with the vendor right away and try and order it for you right away. Of course, there are always exceptions, but most small service company owners are eager to go above and beyond in their customer service support and this is just one way they can do so for their customers.

Customer service is more personalized, hands-on and noteworthy from smaller service companies. Again, there are exceptions to every rule, but generally speaking you should expect that a smaller service company will deliver stronger customer service. Their personal commitment to their business certainly helps in these efforts, but even from their collective team – no matter how small or large it is – typically stronger customer care is experienced. Among the reasons why is that they have a more hands-on role within the company, therefore building a stronger sense of care for the job they do. Additionally, smaller service companies are more flexible in their customer support – with a willingness to bend rules if necessary (such as alter a return policy) or deliver VIP treatment when least expected. While every business is different, what also makes customer care among small service companies more valuable is just that – being different.

Local service companies are more likely to give back to your community. Beyond actual dollars being kept within your local community – which is significantly higher when dollars are spent at a local service companies vs. a corporate one – small service company owners are also more likely to "do good" for your community, as well. Small businesses deliver community character and economic advantages to the town they are positioned in, but also strengthen partnerships among neighbors, residents, other small business owners, community leaders and even schools by offering social and economic relationships. Many also support local causes, creating even more good within a community.

What is the family business?
A family-owned business may be defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family. Family-owned businesses may be the oldest form of business organization. Family owned businesses are economic powerhouses that drive local, national, and global economies.

Beware of the larger service companies rolling up to your door with a fleet of vehicles and too many employees to keep track of. Most all of the time someone has to pay for the new fleet of vehicles and cost associated with staffing a larger company and that someone is YOU!!

Contact Comstock HVAC,Inc today and let our family help you.

Rebate

Residential Natural Gas Equipment Rebate Program Available to NYSEG and RG&E residential natural gas customers.


NYSEG / RG&E Rebate Programs

Save energy, save money, and get a rebate?

YES! Say yes to your energy savings by participating in our residential natural gas rebate program. Install qualifying high-efficiency natural gas equipment and you could save more than $150 a year and be eligible for a rebate.

To view the list of qualifying equipment and available rebates click your supplier below.

NYSEG

RG&E

The Wrong Furnace

In the winter of 2014 I was called to a residence in North Cohocton NY for a no heat call.


Upon arrival I found a down flow LP gas furnace which was recently converted to natural gas by a local company. The furnace was short cycling on high limit and there fore not staying on long enough to raise house temperatures accordingly.

The house was a modular style house with this furnace installed in a closet off the kitchen area. I checked the duct system and it was obvious that this was not the original furnace that came with the house.

Upon further investigation and finding the users manual for the furnace online it became clear that this furnace was incorrect for the application. The users manual declared in bold letters that this furnace can NOT be installed or used in Modular or Mobile home applications and was unsafe to do so. I informed the homeowners of my findings and they responded to them by saying that they just purchased the home through a Realtor and the furnace was replaced by another heating company to complete the sale of the house.

Because of the liability issue I could do nothing to help them and got back to them with a price to install the correct furnace the next morning. I did not ever hear back from them.

So my questions are these:

Why did the original installing company use the wrong furnace? How did the local company miss the fact that they piped and left running a potential hazard?

Are both companies so money orientated that common sense and customer safety is last on their lists?

It Has To Be Replaced

So I got a call in July 2015 from a local business man who asked me to take a ride with him to look at something that was troubling him.

To this I responded absolutely. I picked him up and he rode over to his friend’s house with me. He had me look at a central air conditioner and asked me if it could be repaired.

So I went through and diagnosed the system and found that all that was wrong with it was the AC thermostat was not calling to the outside unit. In other words it had a bad thermostat.

I replaced the thermostat and the customer’s AC was back on, all within an hour.

I now asked him why he was troubled and he explained to me that the summer previous a local company told his friend that the entire AC unit was bad and needed to be replaced. The cost would be approximately $5000.00. Ouch!! I fixed it for $100.00. He thanked me for my expertise and I dropped him back off at his place of business.

I was left pondering the following issues.

  • Did this company really serve its customer’s best interest?
  • Were they only interested in cashing in on the misfortune of another by offering to replace something that was perfectly fine?
  • To what caliber was the field tech? It is hard to believe that a simple diagnostic procedure was overlooked or not used. In conclusion i can tell you that there are "Big Box" service companies out there that do have technicians who have no field depth. These are the parts re placers who lack the proper field diagnostic training for simple repairs. It also occurs to me that these same companies have policies in place that say anything over x years old will be replaced and not bother to repair.