Tuesday, January 3, 2012

Reverse Auction For HVAC Services

Here is one that people have been playing for about 10 years now.  Running a Reverse Auction For their HVAC service work.   As I have seen so far it is a JOKE!!! 
For those of you that may not understand reverse Auctioning, it is where a company says I need 15 widgets and if you want to build these widgets for me you need to tell me how much you can build them for.  They then allow all bidders on the Internet based bid site and then the auction begins and the LOWEST bidder wins the right to build 15 widgets for the company. 
I participated in one of these such auctions-only one.  I spent several weeks visiting close to 100 locations for a company that wanted to consolidate their HVAC maintenance and service with one contractor.  I prepared my proposal-what I would like to get for the service and what my bottom line for the work would be.
It was, I believe, a Wednesday morning when they had the auction.  I input my first bid and watched over the next 45 minutes as each bidder subsequently lowered their bids for the work in question.  With in 20 minutes the pricing had reached my minimum for the work so I just continued to monitor the pricing-with in 30 minutes the work was below my direct costs for labor and materials-NO PROFIT OR OVERHEAD-by the end of the 45 minutes the LUCKY LOSER was priced at 25% below direct cost for the work.  I know this because I have several friends who worked for the lucky Loser so I know their overhead, labor costs, etc. 
Well in true fashion for most public bid projects they put the screws to the owner for the first year of the agreement.  They condemned as many pieces of equipment as possible and replaced them as extras under the agreement.  They made lots of money in the first year-they did little maintenance but made alot of money.  Then about half way thru year 2 they dumped the contract because they were losing money-leaving the owner holding the bag-little maintenance performed and that which was performed was by first or 2nd year level employees with little or no skill/experience-Poorly performed.
I have been asked to participate in this type of program on several other occasions and politely declined.  I have told each of them that when they want a program tailored to their needs so that they get a Premier Maintenance Program and I make the 10% profit I need to stay in business please call.  None of them have but as word on the street puts it they all have gotten far less than what was needed.

Everyone needs to make a profit to stay in business-but not at the expense of another.  I work hard to provide a quality service at an investment that permits the staff to do their job properly and completely and the owner can remain comfortable knowing we are true to our word. 

Reverse auctions are bad for both the provider and the owner.  Mr. Owner please wake up and smell the coffee-a contractor will not perform the level of service you expect if it means they are going to lose money!!!!  They are in the business of making money-once you realize this your level of service will go up along with the value of your investment in your Brick and Mortar!!!

Thursday, October 27, 2011

Be Careful about CARBON MONOXIDE!

 

The below article came from a local paper today.  Scary when a family barely gets out with their life!  It has been stated before on this blog but I will do it again. 

Be Sure the Company Installing Your Furnace Knows what they are doing.  This accident was due to someone taking the easy way out and exhausting the furnace thru the drier vent!!! 
If it was the owner of the property shame on him for not hiring a professional.  Worse yet if it was a professional they should be handled accordingly as well as never allowed to work in this industry again.
Carbon Monoxide is no laughing matter-it is colorless, odorless and tasteless.  For many the go to sleep and never wake up again!!!!  It is simple to address in your existing furnace if you have someone perform a proper furnace clean and check-which should include a combustion analysis and Carbon monoxide test with heat exchanger and flue inspection-not as an extra to your clean and check but included with the initial charge for the service. 
Please be safe this winter-for between 80-100 dollars you can have a reputable company come and perform the above service.  The Key is REPUTABLE-not the 19.95 advertisement. 


Carbon monoxide leak sickens Wilkinsburg family

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James Knox can be reached at 412-320-7832 or via e-mail.
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A Wilkinsburg family of seven was hospitalized this morning after being sickened by a carbon monoxide leak in their rented duplex.
The furnace exhaust had been poorly vented through a clothes dryer duct and the basement registered 1,000 parts per million, which can be fatal, according to Pittsburgh fire Lt. James O'Toole. The first floor registered 70 ppm.
The average level in a home without a gas stove is 0.5 to 5 ppm, according to the Environmental Protection Agency.
The family — five children and two parents — lived on the first floor of the building in the 1400 block of Marlboro Avenue and a woman lived on the second floor. The parents were taken to UPMC Presbyterian and the children were taken to Children's Hospital, O'Toole said. The tenant upstairs was evacuated.
Authorities are seeking the duplex's owner, he said.


Read more: Carbon monoxide leak sickens Wilkinsburg family - Pittsburgh Tribune-Review http://www.pittsburghlive.com/x/pittsburghtrib/news/s_764115.html?_s_icmp=NetworkHeadlines#ixzz1bzFnCGv9

Monday, October 10, 2011

Sam's Club Sells coal/wood furnaces

http://www.samsclub.com/sams/shop/product.jsp?productId=prod4850649&pid=20111010_InsiderROL&rid=1191639370&cid=promoemail

The above link is from an e-mail I received today from Sam's Club.  They are offering a coal/wood furnace so you can eliminate your HIGH OIL BILLS!   What are they going to think of next.  If says fits right up to you duct work.  They make it sound like a 2 hour job based on the little I have read. 
I am not sure what to say about this.  Anyone have any thoughts? 
Cut Your own wood! Dig your own Coal!  Just takes a saw and a pick/shovel and you are now self sufficient. 
Does anyone remember the days of burning coal for heat?  I do and I am not that old.  I lived in a little community in North Central Pa.  The neighbor across the street burned coal. The filth on my car each morning.  The dust on the porch,  the dirt on the windows.  Certainly made for alot of Grumbling on my part.

I must say though the folks at Walmart/Sams Club certainly want to be the one place you will go to shop.  A lot of Chinese products-putting US workers out of jobs. 
I have a novel Idea-lets see how many of us can quit shopping at Sprawlmart and begin helping America again.  Buy American-such as Bully Tools-a small company in Steubenville ohio that manufactures 100% american made tools.  At a better quality and a more competitive price than the Chinese can bring to our country. 
Look around-ask around-you might be suprised! 
Oh and for those of you who do purchase this unit-Best of Luck!

Monday, October 3, 2011

Can you Trust the technician performing your furnace inspection?

Maintain, troubleshoot, and repair various HVAC systems including furnaces, boilers, air conditioners and heat pumps.


Knowledge of electrical and gas diagnostics and airflow.

Both residential and commercial settings.

EPA certification and clean driving record required.



We are an excellent company with an outstanding reputation in the Pittsburgh area. Included in this position is a great benefits package, including health, dental, vision, 401k and life insurance.




Location: North Hills Pittsburgh

Compensation: hourly + commission

Principals only. Recruiters, please don't contact this job poster.

Please, no phone calls about this job!

Please do not contact job poster about other services, products or commercial interests
 
 
Do You SEE THE ABOVE HIGHLIGHTED?  This is an actual Craigslist advertisement for an HVAC Service technician.  You obviously see the Commission portion of the ad.  How can you trust a technician that gets paid commissions on what they sell you.  Not what you need but most often what it is they want to sell you.  Do you need a new furnace?  Maybe not but with the technician getting commission on a new furnace installation perhaps he may tell you an untruth/LIE to scare you into a new furnace which is good for his pocket-and bad for yours.  Would a new furnace have been a good idea?  If you have an 80% efficient or perhaps an even older 60% efficient furnace than YES it would be a good idea.  You begin saving money the minute they install it but does it mean your old furnace NEEDED to be replaced.  Unless it is a danger to leave it operating then no it does not need to be replaced.
Is the above a common practice with Residential HVAC service technicians?  I believe more than any of the HVAC service companies would like to admit to. 
I have seen numerous occasions where technicians have directly lied to home owners about the condition of their furnace or air conditioning unit which is generally followed by the line "But we can get you taken care of immediately by replacing this old one with a brand new one!" 
I have seen it  2 days before Christmas where a client of ours, a business owner we serviced, was flat lied too about parts availability for the furnace in his home.  He was told that most of the parts required-that his kids shorted out having a water fight-were obsolete and alternates were not available, but they, the company on the service call, could get him a new furnace installed that same day!  After he called me, as he was not in a financial position to afford a new furnace, I dispatched a technician.  He arrived at the client site and just for kicks took the model and serial number then contacted the one and only local supplier for this manufacturer.  GUESS WHAT?!  All parts needed for the repair were on the shelf locally at the supply house in Pittsburgh-we had their heat back on by 8 pm that evening.  NO NEW FURNACE NEEDED-and no commission check for the other companies technician-oh yeah-and no commission check for our technician because he is paid well on an hourly basis-no commission-no incentive to lie. 
If you call a company to come inspect and/or repair your hvac equipment at their home-ASK IF THEY PAY THEIR PEOPLE COMMISSIONS!!!  The majority do!! 
 
As well, the benefits listed above as Excellent, may not be.  I have one current employee who worked for a company for a short period that Paid commissions on the sales.  Well the excellent benefits were there if you sold a minimum amount of parts and equipment each month.  If you did not sell the minimum amount then your excellent benefits costs came out of your hourly rate.  If you are living check to check like alot of people that could provide additional incentive to not tell the truth. 
 
If you call a company to come inspect and/or repair you home hvac equipment as them if they pay commissions to their technicians.  Another hint-if they do not want to tell you then most likely they do.

Tuesday, September 27, 2011

Green House Project

I was at a meeting yesterday at Action Housing here in Pittsburgh on their Green House Project.  This project is to be a place where home owners can go to get educated in what is being termed GREEN.  They can put their hands on it-see how it works-see how it is installed. 
Contractors can come for training, get some hands on time in a home designed to let them see and do with some of the new technologies.  Gain insights that perhaps a contractor might not get unless they installed something incorrectly. 
Provide opportunities for new business owners to explore technologies that they otherwise might only read about.  Provide Vendors/Manufacturers a place to display their Green products and show the consumer why it is not just good to go green but it is the right thing to do for our future.
Many home owners only hear what a contractor tells them.  This Green House will be a place where they can see it, feel it and hear about it without it being part of a Sales Pitch.  I am really excited to be a part of this along with the URA, Habitat for Humanity, Pittsburgh Green Inovation, MWELA and many more organizations.   If you would like to see more about it, perhaps participate in planning, be able to offer training,  anything to help move this forward you may contact Lindsay Ruprecht at Action Housing.
Learn What Green Is, Learn What Green Can Do For You, Learn It At The Pittsburgh Green House.

Tuesday, September 20, 2011

Fall Clean and Check

Wow, can you believe that the hot weather is gone?  I know I sure can not.  It has been such a busy summer season.  I have had some wonderful opportunities come my way that have allowed me to learn and grow.  I hope that throughout this coming year I can provide some insight into that learning to help you.
It is that time of year again-The cold weather is coming and the furnace needs to be looked at so you have a reliable, efficient heat source for when it is cold outside. 
Along with this need to have a professional service your furnace come the ever increasing tv, radio and print advertisements $19.99 furnace clean and check, Free __________ with furnace clean and check and on and on....... 
Remember what Dad/Mom used to say "If it seems too good to be true then it probably is" 
Have you everbeen to one of those "Timeshare" presentations where it is so high pressure you think your eyeballs are gonna pop-or maybe you are at the used car lot down the street getting suckered into that vehicle that "the old lady used to drive on sundays".  Well that is what you are in for if you fall for one of these Schemes!
A proper furnace clean and check performed by a well trained proficient technician requires anywhere from 45 minutes to an hour to perform.  This would include but not be limited to-Checking all electrical connections, inspection of the heat exchanger/exchangers, change the filter, clean the blower compartment and return elbow of the duct work, inspect the flue/chimney both internally and externally, leak check the gas line, Oil/grease the blower motor/bearings if applicable, check the thermostat and change the batteries, check your smoke and carbon monoxide detectors and change the batteries, perform a combustion analysis on the furnace and check for carbon monoxide leaks, Check all relays and valves for proper operation, visually inspect the ignitor, and provide you with a clearly written report of their inspection for your signature and explaining in common terms(so you can understand them) what if any repairs/upgrades they might recommend or need to be performed.
You can expect to invest around $80-100 for this service from a reputable company-yes there are some who will ask for a little less and some a little more but not $19.99!
If you have any questions please feel free to contact me directly. 
Until next time Aloha and Mahalo!