Beware of Furnace Fraud

The Denver District Attorney has sent out a warning to watch out for furnace fraud. Here is some of what he has to say:

Fraudulent contractors and furnace salespersons often use scare tactics. They may insist that you must buy a new furnace immediately due to leaking as and the potential of a catastrophic explosion. They may tell you that the "heat exchanger" or "combustion chamber" is cracked or has a hole. Or they may simply say that your furnace is too small and should be replaced with a larger one. If a contractor says you need expensive work immediately, don't panic. Keep in mind the following tips:

• All heating contractors are required to be licensed and to get a permit from the Building Department before doing any major work. Ask for verification of a license and the permit. To verify if a contractor is licensed in Denver call 720-865-2770 or go to www.denvergov.org/contractor_licensing
  

• Check out all contractors with the Better Business Bureau, by calling (303)758-2100 and your city Building Department before inviting a serviceperson into your home for an estimate or service.
  

• If you are told your furnace needs to be replaced, get a second opinion from a licensed contractor whom you have checked out with the BBB.
  

• Remember that once the old furnace has been removed, proof of its original condition is impossible to verify, making it difficult to recover your losses or to prosecute for fraud.

RESIST if a salesperson gives you a high-pressured sales pitch, especially if you are solicited at your door or by phone by an unfamiliar contractor.

This is good advice. As a handyman I don’t repair or replace furnaces. I do know of some good companies who do though. If you need a referral, give me a call.

Philip

Overcharge

An elderly customer called me a couple weeks ago. She wondered if I could be with her when she met with the representative of an electrical company who had done some work for her. She felt she was being taken advantage of. She also explained that the electrician told her that she needed new smoke alarms without ever looking at the ones she already had.

The company is called Mister Sparky Electric. It’s related to One Hour Heating & Air Conditioning and Benjamin Franklin Plumbing.

The issue that had her attention was that she was being told that it was now the law that she had to have a Carbon Monoxide Detector on her furnace. She put down a deposit on the unit that was going to cost around $500. After talking to her daughter and doing some research she found out that it was not the law and the units that Mister Sparky was selling were not even ready for sale yet. This made her angry and suspicious.

The three companies mentioned above are the type that advertises "No Surprise" Straightforward Pricing. What this means is a guy comes out, looks over the job and then gives a price. If you accept it then you sign a contract. It sounds good but what I keep coming across with many companies like this is the price they give seems excessively high. That’s not to say they don’t do good work, it just costs a LOT! A way the company drums up business is by offering “free” electrical inspections.

My customer cancelled the Carbon Monoxide Detector and said she would not be using this company any longer. She showed me the bill from the previous work and I was astonished at the charges. Here is what I saw: After doing an “inspection” the electrician determined she needed her whole house surge protector replaced. Contrary to the claim of pricing being up front, he replaced it and told her after. He also replaced three circuit breakers.

The cost for the whole house surge protector was $258. You can buy the surge protector for under $100 retail. That means the labor charge was over $150. The installation consists of disconnecting and reconnecting a few wires – maybe a ten minute job. The cost for the three circuit breakers was $251. The circuit breakers probably cost under $10 dollars each and about five minutes to replace. To me that is an excessive charge.

He also told her she needed a GFI on her kitchen outlets. He was going to charge $169. The parts would have cost $15 to $25 and maybe fifteen minutes to install. She was wise to turn down the job.

The truth is that most people have no idea how long these jobs should take or what the parts actually cost. They trust the company because the “troubleshooter” recommends them.

In my Handyman business I am fair and honest with my customers. If someone wants an upfront price I will take all possibilities into consideration when I give them the price but would consider it unethical to charge them two or three times what the job is worth.

The lesson is to look beyond shiny trucks, spiffy uniforms and well-known names. Find service people who do good work for a fair price. When you call The Handymen, I guarantee you will get both.

Philip

Would You Like $1000?

Would you like an extra $1000? Then be careful who you hire for service work. That’s what one of my regular customers learned today.

I received the call last Friday. Would I be willing to clean out a sump pump pit? It seemed that an odor was coming from the pit. It was located under the basement bathroom vanity that may need to be removed to get access to the pump.

When I arrived this morning I heard more of the story. They had called a plumber (AppleTree Plumbing) who told them the pit needed to be cleaned out but it seemed the plumber didn’t want to do the job. He also told them if the pump needed to be replaced it would cost $1200.

When I took a look at the sump pit I could see that it wasn’t very deep and the vanity wouldn’t have to be removed; that was good news. I removed the sump pump from the pit and found out there was a cement pad in the bottom of the pit. That was good because it keeps the pump out of the mud. There was a small amount of debris in the pit but not more than a handful.

I tested the pump and found out it wasn’t working. I picked up a new one and soon had the pit back in working order. The smell was probably coming from stagnation because the old pump didn’t work.

A new pump cost about $100 and with labor the bill was a little over $200. By calling me, my customer ended up saving $1000.

It hear this type of story on a regular basis. Companies take advantage of a customer not knowing what is involved in a job and how much it should really cost. Of course what they do is not illegal but I don’t think it’s ethical. I understand that when a job is bid there is a cushion built in for unforeseen circumstances but I think the difference between $200 and $1200 is what most of us would call a rip-off.

The lesson here is to be careful who you hire. It really means a lot to have a workman who is honest and cares more about helping you than making a quick profit.

Philip

How much is this handyman job going to cost me?

Most of the work I do is billed by the hour. Sometimes a customer wants a bid on a job. I'm glad to work either way.

I understand why people want a bid - it lets them know how much the job is going to cost.

Whenever one of my customers requests a bid, I explain that, while I am glad to do so, it will cost them more in the end.

Let me explain how a bid works. I am going to go through the job and everything is going to be figured from the high end. I'm going to consider what could take more time than normal and what could cost more. A cushion will be built in. When the job is all done, I don't want to come up short. That's how the process works.

Some people are willing to pay more for the assurance of knowing what the job is going to cost up front. I understand that.

Usually once I have worked for someone, they realize that I am very fast and efficient. They see that doing the job by the hour works in their favor. If I worked only by bid, I would make more money but that's not what I'm interested in. I would rather have a long-term relationship with a customer than to make a lot of money one time.

Another way I do business that benefits my customers is in how I charge for supplies. When I buy materials for their job I give them the receipt and that is how much they pay. I don't mark it up at all.

Recently I have heard a lot of advertising by service companies that encourage "up-front-pricing". In some cases, it is an honest and fair bid but many times the price is ridiculous.

I had a customer some years ago who didn't know that I installed garbage disposals. She called a well-known plumbing company (big orange trucks and the words apple and wood in their name). They used the "up-front-pricing" model. She was given a price of $500.00 for the job. She thought it seemed high but the plumber gave her a spiel of how expensive the disposal was, etc. She ended up approving the work and later realized she was overcharged.

The disposal she had installed retailed for about $70.00 and there could have been a few dollars in other parts. It would have taken between 15 minutes to an hour (if complications) to do the job. Add some traveling time on top of that and the job still wasn't worth half of what she was charged. I felt sorry for her.

Businesses like this are all over town. Many handyman companies, especially the big franchises operate this way. Sometimes it's hard for the consumer to know what a fair price is. That's why it's good to have a company you can trust.

I have been in business since 1984. On my website, I have a list of my satisfied customers. The pleasure I receive from those testimonials is far greater than the short-term gain of overcharging.

Philip