Appliance Repair Pricing
Appliance repair pricing can be a confusing topic when seeking out a professional to service one of your trusted appliances, because of the various methods being used in the industry. Believe me, every day we try and be as accurate as possible with our customers to avoid any confusion when the technician arrives. But the average consumer may not be aware of these differing ways in which they may be charged and may unknowingly be paying more than they expect, or in some cases, more than they should. Below I am going to outline the most common methods used in the industry for charging for our services and would advise everyone to pay attention, because how much you are going to pay can have as much to do with how you are being charged, as with what is being repaired.
Time and Materials
This is simply paying for the time and the material used in the repair and is used by many trade professionals from plumbers to lawyers. Generally, the customer is charged a service call fee (more on this later) which may also include the first 15 minutes or so of the repair, and then billed in time block increments. This method is seldom used in the appliance repair industry anymore, simply due to consumer pressure. Somewhere along the way, consumers began to realize they were paying more for slower, less experienced technicians, than a well-trained, experienced technician. If you find someone that still uses this method of billing, do try and get a firm estimate from the technician before beginning a repair because you may find you are paying for additional trips to get parts, or even for additional time on repairs not discovered in the initial inspection.
Flat Rate
The flat rate has proved to be a more popular method given current economic uncertainty because it allows for better budgeting by the service provider and the consumer. Simply put, the price charged is generally based on the make and model of the appliance rather than what is actually going to be repaired. The more complex the product, the higher the price you can expect to pay. This can be a very good way to go because as a customer, you at least know how much the labor is going to cost even before the tech shows at the door, and most companies will at least ball park the part price if you are able to provide a good description of the problem, and a model number. The one drawback I see in this method is for those failures that require very simple fixes you are still paying the same as someone with a more complex, time consuming repair. Some companies do, however, offer minimum service pricing in this event where they may resort back to a lower cost just to keep things fair.
Blue Book
And speaking of fair, our next method is commonly referred to as Blue book pricing, or job rate pricing, and between you and me, this is the fairest way to charge a customer. How it works is simple, the technician arrives and diagnoses the problem. They then consult their pricing guide for the labor rate, add this to the service call fee and part price and now you have the total charge. If this sounds familiar, it is commonly used in the auto repair industry and as I said, I think it is a good way to go because it ensures the customer is only charged for what is actually wrong. The service provider makes more money on harder jobs and less on quick easy fixes. Or read that as the customer is charged less for simple fixes and more for difficult repairs. Most of these books are updated annually and the fees are based on real work experience from technicians actually doing the repair. Once enough numbers come in, weighted averages can be used to determine appropriate charges for each job. But if it is so fair, then why isn’t everyone doing it you might ask? In my own opinion, I think it comes back to the customer wanting to know what to expect prior to having someone show up, and making comparisons between service providers. The blue book price can only really be determined with a good sound inspection and diagnosis of the equipment and any number provided over the phone is simply going to be a shot in the dark.
Now to the Service Call
This one takes on many names, be it a diagnostic fee, trip charge, travel charge, inspection fee, or whatever else it may be called, it is simply the fee to have a technician drive to your home and see what is going on with your appliance. Every trade that comes to a home or business to do work will have a service call fee. As the name implies, this is generally going to be the charge to cover the fixed overhead costs of having someone drive out, get out their tools and find the problem with the appliance. Please don’t confuse this fee with a bid from a contractor or other trade professional because they are not the same. Bids are generally going to be for high priced repairs or services and require general inspections to be completed. So when a technician comes to your home, spends 20 minutes to diagnose the problem and provides you an estimate, which includes the service call fee, do not assume this is a bid and you only pay if you want the appliance repaired. Which brings me to the main reason for this topic and that is what I call marketing smoke and mirrors. The service call fee has turned into a bit of a carrot for the consumer as different service providers use terminology like “fee service call with repair” or ”no trip charge with repair” to lure in their next customer. The truth is, every business has expenses and the service call fee is simply a way to recoup some of those expenses when the repair gets a little too expensive or is financially a bad idea for the customer. Anyone that says the fee is waived if you decide to go with the repair is simply playing a numbers game. For example, if the service call fee is $79, a good round number for the area I work in, and a typical labor rate for changing a motor coupler on a Whirlpool built direct drive washer is $40, this would bring the total charge to $109 which I would say is fair. Now if the service call fee where really waived, the tech would leave the home with the $40 plus the cost of the part. See what I mean. Using this method, the tech would be better off inflating every estimate and leaving with the service call fee, never really needing to get in and do any work. The moral of this story is nothing is free. You may not see the $79 charge on the receipt, but you are still paying for it, be it in an inflated labor or part price, or maybe it will simply be called by another name.
So in conclusion, I hope I have at least cleared up some of the murkiness surrounding the appliance repair billing process. My advice has always been the same, and that is to find a professional before you need service and make sure you have a clear understanding of how they charge for their services. Most people make decisions in desperation and don’t realize when comparing one service provider’s charges to another, you cannot easily make an apple to apple comparison. And always avoid the number tricks found on many advertisements trying to get you calling with the promise of a very low service call, or no service call fee. The reality is you are still going to be paying the same, but that money will end up in another part of the bill.
Brian is the owner of All Tech Appliance Service in Clackamas, Oregon and is a Master Certified Appliance Professional with over 20 years of field service experience.
