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America's new millionaire class: Plumbers and HVAC entrepreneurs

(www.wsj.com)
185 points hhs | 9 comments | 13 Oct 24 15:35 UTC | HN request time: 0.548s | source | bottom
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antisthenes ◴[13 Oct 24 16:38 UTC] No.41829398[source]▶
I wonder if that's the reason my HVAC guy tried to charge me $700 for running a thermostat cable less than 8 feet (that I later did myself in less than 30 minutes).
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SoftTalker ◴[13 Oct 24 16:41 UTC] No.41829435[source]▶
This is the typical trade tactic for rejecting a job that is too small to be worth your time. He still has to come out to your place, with his truck and tools, and install that 8 feet of cable. He could spend that same overhead doing an 8 hour, much more profitable job.

So he bid an outrageous amount. If you had said yes, he covers his overhead. If you reject it, he does something more profitable with his time.

replies(1): >>41829615 #
1. asdefghyk ◴[13 Oct 24 17:05 UTC] No.41829615[source]▶
RE ".... If you had said yes, he covers his overhead..." Really - a overhead of several hundred dollars. Seems far fetched to me.
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2. RyanCavanaugh ◴[13 Oct 24 17:09 UTC] No.41829650[source]▶
It's not just the overhead of showing up, it's the opportunity cost of not doing contiguous hours at a bigger job. It's very difficult to fill up a day with 45-minute jobs all over town, so he's basically working part-time if he takes a small job.
replies(1): >>41832438 #
3. ghaff ◴[13 Oct 24 17:17 UTC] No.41829718[source]▶
Even easy job is probably going to take a few hours between scheduling overload, driving to and from the site, figuring out what needs to be done, and actually doing the work. Expensive? Possibly. But doesn’t seem out of bounds. How much would you charge to drive to an office to solve some problem even if it turned out to have an easy fix? I can’t imagine quoting much less than that.
4. bryanlarsen ◴[13 Oct 24 17:23 UTC] No.41829761[source]▶
Let's say he can do two such jobs per day and has 50% overhead. That puts his hourly rate at $700/4/2 = $88. That's good money, but it's probably less than what you make.
5. somerandomqaguy ◴[13 Oct 24 17:25 UTC] No.41829780[source]▶
Overhead which probably includes warranty of the work and materials, and liability in case he damages something doing the work along with the additional regular costs.

Not to mention there's the possible, "I don't like you," fee.

6. sokoloff ◴[13 Oct 24 17:27 UTC] No.41829799[source]▶
It takes time (plus money) to drive all over the place giving quotes for simple jobs that people end up getting multiple bids for and/or end up not hiring anyone in the end. Those costs aren't provided as charity, but rather has to be baked into the price of the jobs that do get accepted.
replies(2): >>41832471 #>>41833787 #
7. asdefghyk ◴[13 Oct 24 22:50 UTC] No.41832438[source]▶
Where I live , there is a "call out fee". that prevents tradesmen from not being paid for time costs driving to job investigations .... The customer also pays for the needed diagnosis time too. So I do not see a reason why not do small jobs.
8. asdefghyk ◴[13 Oct 24 22:55 UTC] No.41832471[source]▶
Charging a callout fee ( charge for tradesman to just come to job site) solves this problem. Any diagnosis time is also charged.
9. FireBeyond ◴[14 Oct 24 02:51 UTC] No.41833787[source]▶
Hah, most places here charge a callout or quoting fee that they will refund when you order from them.