We had B&B AC & Htg come out to fix our A/C a few years ago and were told we could save a lot of money on labor for the repair by purchasing a "Certified Maintenance-Service Agreement", so we did. We paid $540/year for the contract, which included 2 inspections per year and if any repairs were needed, we were told we would be charged for "parts only" and "NO labor charges", for a significant savings.
The first year, in addition to the $540 contract, they charged us $180 in materials to clean 2 coils and flush 2 lines (which reflected a 10% discount for paying in full that day). During the 2nd year with a contract, they said we needed a new gas valve & quoted a cost of $418.13 for the replacement part only (no labor charges, per contract). Prior to okaying this, we found the part online (new) for approximately $100 so we asked Cameron, the Asst Svc Mgr at B&B, if the quoted price was correct and mentioned the $100 price online. He said "I understand you can probably find em online for cheaper but that's the best price we have" and said they have to figure in overhead..."with every part you're paying for the trucks, gas to get out there & all of that's all included with the price of the part".
Despite the $300 markup, he reminded me we'd be "saving" approx. $300 in labor for the 1-1.5 hours this repair should take since we had a contract. We expressed that the price/markup still seemed excessive, considering we were told that we'd be SAVING a considerable amount of money via "no labor costs" with the $540 annual service contract, which we assumed also went towards overhead costs. Both he and his VP/GM, Chris G., stood firm on their price so we let them know that we would not be using them to replace the part nor would we be renewing our contract, as we saw NO advantage in paying for an annual contract if the labor "savings" were simply to be offset by a 400% "overhead markup" on parts! We then had another company come out and replace the part for only $285 (total parts AND labor, with NO annual contract), and it's been working fine ever since. B&B has repeatedly sent us mailings inviting us to renew our contract, which we've returned with reminders that they could save on their overhead costs by not wasting the time/money to mail them to us.
Additionally, we've noted that "CHECKED filters" was indicated on some of our svc reports and on one visit we specifically asked if the filters needed cleaning/replacing (as we had extras if they could replace them). Tech replied that they DID need replacing but that was not part of the contract & he even wrote on our service report "Filter is dirty" and "Remember: Change air filter and wash filter". However, when reading over our contract (after severing ties) we saw that it actually states that the Seller agrees to "Inspect air filters and clean or replace with new filters" as part of the two regular inspections per year. (??!!)... We would NOT recommend this company or their Svc Mtce Contract.
0 comments