Dual pricing schedules! (Long, but informative!)

Discussion in 'General Chat' started by SNEEEZY - Erika, Aug 13, 2011.

  1. SNEEEZY - Erika

    SNEEEZY - Erika M/A Wrenchin' Babe!
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    ===LET THE RANTING COMMENCE===

    Let me begin by saying that I understand wholesale pricing, overhead, retail markup, etc.

    If a manufacturer (Company A) has printed materials that clearly state a specific cost or labor hours billed, a customer should expect to pay costs as stated, yes?

    Well, that's not the case if Company A has a dual pricing schedule!

    I am considering purchasing an item that has a retail price of $500+ because I can get it for only $190. (GREAT DEAL!)

    However, I need to find an authorized installer and there are only two in my area that I've found so far.

    Company A's printed material states that labor for the installation & computer system update only requires .75 labor hours (.25 for installation + .50 for computer system update).

    I would be performing my own installation, so the only labor remaining would be the .50 labor hour for the computer system update.

    Here's where it gets interesting...

    Installer A = $125/hr labor (2 hour drive one-way)
    .50 x $125 = $62.50

    Installer B = $124/hr labor (30 minute drive one-way)
    .50 x $124 = $62.00

    So I call Installer A to schedule the appt & confirm the pricing...and that's when I am informed that I was given incorrect pricing by Installer B. I ask for an explanation and this is what I'm given:

    Company A only allows billing as shown in the printed material. (Ok. So far, so good.) However, the labor shown is if I had purchased the item as an add-on when my system was originally being put together. It was also explained to me that I could've opted to have the upgrade installed at a later date, but I would've had to make those arrangements (schedule appt & payment) the very same day I picked up my original system.

    Since my system is no longer under warranty, a different pricing schedule goes into effect: 1.5 x the printed cost/labor allocation.

    :mad5:

    Installer A = $125/hr labor (2 hour drive one-way)
    .50 x $125 = $62.50 x 1.5 = $93.75
    .50 x 1.5 = .75 x $125 = $93.75

    Installer B = $124/hr labor (30 minute drive one-way)
    .50 x $124 = $62.00 x 1.5 = $93.00
    .50 x 1.5 = .75 x $124 = $93.00


    Ok, not what I expected, but still decent pricing, so I decide to schedule the appointment...and then I find out it get EVEN better!

    Installer B claims that even though I will be doing my own install, they are REQUIRED by Company A to bill me for the FULL 1.125 hour job instead of JUST the .75 computer upgrade labor.

    WTF?!

    He explains that Company A doesn't allow "partial billing" even if the customer performs their own install.

    So let's look at those numbers AGAIN:

    Installer A = $125/hr labor (2 hour drive one-way)
    .75 x $125 = $93.75 x 1.5 = $140.63
    .75 x 1.5 = .75 x $125 = $140.63

    Installer B = $124/hr labor (30 minute drive one-way)
    .75 x $124 = $93.00 x 1.5 = $139.50
    .75 x 1.5 = .75 x $124 = $139.50

    :mad2:

    I politely let Installer B know that I will call back later. I never let Installer B know that I had already contacted Installer A (and vice versa).

    Something about Installer B's explanations just didn't seem right and I wanted to see what Installer A would say about "printed billing", etc.

    So I give Installer A a call and they say, yes, there is a dual pricing schedule as mandated by Company A. (Ok, so far info is matching what Installer B told me.)

    I asked what it would cost me for just the computer upgrade portion of the job since I would be doing the installation myself.

    Installer A replies that it would be $93.00 plus tax.

    Awesome! (Wait, what?!!! What about the "mandated full price billing" as stated by Installer B?)

    I mention what Installer B had told me and I was put on hold for maybe, MAYBE 20 seconds, if that long!

    Installer B gets back on the phone and tells me since I would be driving 2 hours one-way they can do the computer upgrade for only $62.50 plus tax.

    (WooHoo!)

    So I ask why the discrepancy between two installers who are required to follow Company A's mandates?

    Installer B says that Company A gives the Installers quite a bit of flexibility
    and unfortunately some installers rely on distance vs. price and don't always put a lot of customer service "thinking" into how they do business.

    It's a shame because I bought my item :wink: brand new from Installer B but now all of my future business will be given to Installer A and I really think the backwards-baseball cap look of the 2012 version is charming! :biggrin5:

    (END RANT)
     

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