Air Conditioning / May 29, 2019
The Real Cost of a Service Call
Warmer weather is on the horizon — that means your air conditioner is about to be put to the test. You turn it on for the first time this year and notice it’s not blowing any cool air. You’ve researched a few HVAC companies in your area, shopped around for pricing, and wonder why Mauzy’s service call fee is $139? First, it’s important to point out that our service call fee is a flat rate. We do not charge by the hour.
We often get asked, “Why do you charge the same fee if the technician was only out there for 20 minutes?” or “Why is your fee so much higher compared to other HVAC companies?” Well, we wanted to shed some light on this. Let’s break down our costs to run a service call:
Starting with our Fully Loaded Cost. Meaning, our cost to pay our technicians after factoring state and federal taxes, which comes at a cost of about $77 per hour.
Next, we dive into our Fully Burdened Cost which is our overhead. We wish we could say our office magically runs like a well-oiled machine but, no, it takes a team of experts! All of which includes: a team of dispatchers to book the calls, warehouse staff to manage deliveries and stock, administrative staff to oversee bookkeeping, and of course, we can’t forget the expense of keeping our fleet of service vehicles fully stocked with the necessary tools and equipment to complete same-day repairs. All of this “magic” comes to a cost of about $104 per hour. Add this to our Fully Loaded Cost and we’re looking at a cost of about $181 per hour.
Let’s talk Profit Margins. A 10% profit margin is considered average. At that rate, Mauzy would make a profit at $199.10 per hour. At a flat rate of $139 per call, we actually lose money on each call. So, why we don’t charge by the hour? With a standard service call being 2 hours long, we could increase our profit margins if we charged by the hour, but we know charging a flat rate instead benefits the majority of our customers. Furthermore, our technicians do not make any commissions on repairs; their responsibility is to diagnose problems with the system and educate homeowners on how to prevent potential future problems.
Speaking of losses, let’s talk about tune ups. Annual tune ups are important for ensuring your system runs as efficiently as possible and increases the longevity of your system. Like service calls, we run tune up specials as low as $89 per tune up (per unit). With tune up appointments averaging 2 hours long, it’s another service we provide that operates at a loss.
At this point, you’re probably wondering why we don’t increase our margins to make these calls profitable. See, our theory is, if we can get our foot in a customer’s door (whatever cost that might be), we then have the opportunity to service them “The Mauzy Way”. That is, you get what you paid for. No upselling and no hidden fees. Instead, we’ll educate you on tips to take care of your system. We’re certain that just one visit from us will convert you to a Mauzy customer for life!
With all that in mind, even at $139, we know we’re not the cheapest. But, we’re confident in our rate as unlike other contractors, we provide:
Fully Trained and Licensed Technicians: To stay ahead of this competitive market, we employ only the best of the best. This means a team of licensed technicians with an extensive HVAC background. Not only that, but we send our team to annual training courses to ensure they are up to date on the latest technology on the market.
Confidence and Trustworthiness: Two words you might not associate with contractors. At Mauzy, our technicians are paid highly competitive wages by the hour, not by commission. There is no incentive to upsell homeowners into buying things they don’t need. In addition, our team is passionate about what they do. We’re not here to just repair your equipment; we’re here to educate you on your heating and air system.
Security: When a technician is dispatched to your home, you will receive an automated text to let you know we’re on the way. For added security, we’ve equipped our entire fleet of vehicles with GPS tracking. Through our app, you can track your technician to see exactly when he will arrive to your door. Our technicians arrive in branded uniforms, wearing a Mauzy badge (including their name and photo), in a branded Mauzy vehicle. We understand the security risks of letting someone inside your home. That’s why all of technicians are clearly identifiable.
The next time you have an issue with your heating and air system, be wary of choosing a contractor based on the lowest rate. With Mauzy, you can be sure you’re hiring a team of experts who you can trust. Contact us today!
