# What kinds of extra charges are there such as consumables that other HVAC co. charge



## cool2000mac (Mar 1, 2011)

Just curious as to what kinds of extra line charges doother HVAC companies charge. We bill all of our commercial service calls T&M. Our company charges fuel/truck charges and consumable charges but are looking to increase out bottom line since the labor rate we charge is close to what we are playing some of our senior techs. We charge $5.00 for consumables and $15.00. Just curious what some other companies charge for these lines amounts.


----------



## griz (Nov 26, 2009)

HVAC/Ref guy around here charges a service call, trip fee & an EPA surcharge. It runs about $148.00 for the Tech to set foot on the job. Same charge residential or commercial.


----------



## cool2000mac (Mar 1, 2011)

thanks for the update. we get calls from customers (occassionaly) that ask what the consumable entails. do you get these calls about the service charges, trip fee, and epa charges.


----------



## Snobnd (Jul 1, 2008)

Sounds more Like you are the Customer.........Care to Explain?


----------



## cool2000mac (Mar 1, 2011)

nope, no customer. i am the head biller at a large HVAC company. Like all companies, we are trying to raise our margins without losing customer's. i know from what i hear that some of the other HVAC companies charge other misc. charges on their T&M invoices. I am making a report for my Service Manager of what kinds of other charges are out there that we should or could consider. Sorry to make you think i was a customer, but really, do you think a customer would use acronims like HVAC?


----------



## DPCII (Mar 14, 2010)

cool2000mac said:


> Just curious as to what kinds of extra line charges doother HVAC companies charge. We bill all of our commercial service calls T&M. Our company charges fuel/truck charges and consumable charges but are looking to increase out bottom line *since the labor rate we charge is close to what we are playing some of our senior techs.*


Rather than play follow the competition and look for nickel and dime charges to pad the bill, why not address the basic fundamental underlying problem right there in front of you.


----------



## cool2000mac (Mar 1, 2011)

sounds like the solution, but we bill T&M and our large customer base knows how much we charge an hour. We will be increasing that labor rate in July when the techs sign a new labor agreement. But it is near impossible to change it in midstream without tons of complaints. One of our office employess used to work for T**** . He told us of what they had charged as far as trip charges etc. I didn't want to contact the other large HVAC companies in our area and ask them what they charged. I thought i would use this forum. Now if anyone wants to send me a message instead of posting the charges in the forum i will understand. But in response to DPCII we can not raise our labor rate in midstream or does the upper management want to raise the labor rate at this time.


----------



## Snobnd (Jul 1, 2008)

cool2000mac said:


> nope, no customer. i am the head biller at a large HVAC company. Like all companies, we are trying to raise our margins without losing customer's. i know from what i hear that some of the other HVAC companies charge other misc. charges on their T&M invoices. I am making a report for my Service Manager of what kinds of other charges are out there that we should or could consider. Sorry to make you think i was a customer, but really, do you think a customer would use acronims like HVAC?


Why yes a customer would do that!

I have seen all types on this Site.....It seamed to me that you are close to asking a HOW MUCH question, and That is Highly frowned Upon!


----------



## cool2000mac (Mar 1, 2011)

Okay, I give. you are right. it was a very ballsie question. I thought on this site we had anominity and I was only looking for suggestions. I was not asking anyone what company they worked for and what did their company charge. If it is too senitive, then so beit. I will look elsewhere. Thank you Griz for your suggestion.


----------



## flashheatingand (May 3, 2008)

Nickleing and diming your customers to make up for your high labor costs, will only upset your customers. My phone bill is advertised as ...$45.00 /month.... but my paper bill shows a $1.25 paper handling fee. Stuff like that irks me. 

Unfortunately, we all have to do more with less. I know it's easier said than done, but, I would ask how I can get more out of my senior techs.


----------



## beenthere (Mar 5, 2009)

First. You/your company needs to step back and find out how much an hour of labor cost them. And then, YES, raise their labor charge to cover that cost and provide a margin/profit on labor. If they can hold out until teh new contract fine. Its their money to lose.

ALL over head is on labor, not on parts or materials.

Billing a ton of consumables is a great way to whiz off your customers.

A simple listing such as recovery charge $75.00 will keep many customers happy. And that charge should include the recovery machine and tank. If the refrigerant is going to be disposed of, then a small disposal fee can be added.

No reason to make 3 separate charges for brazing rod, torch and nitrogen. 1 brazing charge for the brazing rod, torch, and nitrogen on small repairs. Only break down for larger repairs/usages. Such as multiple fittings, and pipe/line set replacements.

Recovery charge $75.00
Vacuum pump use $25.00
Brazing charge $50.00
Refrigerant disposal/tank clean out $75.00
Misc electrical connectors/materials $25.00 (weather 1 wire nut, or 20 wire nuts)
Misc Mechanical connectors/materials $25.00(weather 1 sheet metal screw, or 20 1/4" nuts and bolts)


----------



## beenthere (Mar 5, 2009)

flashheatingand said:


> Nickleing and diming your customers to make up for your high labor costs, will only upset your customers. My phone bill is advertised as ...$45.00 /month.... but my paper bill shows a $1.25 paper handling fee. Stuff like that irks me.
> 
> Unfortunately, we all have to do more with less. I know it's easier said than done, but, I would ask how I can get more out of my senior techs.


Its not how to get more out of the senior techs. It how to charge the customers the proper amount now, after many years of charging too little.


----------



## flashheatingand (May 3, 2008)

The internet and technology has got to have the biggest effect on the hvac field since Mr. Carrier (don't know his first name) invented air conditioning.

Today, a hucklebuck like me can go out and make a living and juggle all tasks necessary in running a business. We don't have the overhead that a bigger outfit has. The internet has made it easier on us as we aren't dependent on the phone directory. 

Many years of charging too little? I don't think the numbers are going to go up? Want to increase revenues? Gotta increase services. Nickeling and Dime-ing will just anger the customer. 

It just comes down to a matter of supply and demand.I suspect when you started out there weren't as many hvac outfits?


----------



## gene2 (Apr 27, 2009)

You really have to figure your costs & a decent profit, then charge accordingly, otherwise you will go out of business. Your boss ( owners ) should be leading this. If they are challenged on this they need to get their accountant involved. 

If your company provides good, on-time service & cover the inevitable screwup at no charge, there should be little backlash. If backlash is feared, the owner(s) should compose a letter to be mailed to major customers stating that as a result of a review of operations, it is necessary to raise the labor rates on such a date.

Our little company has had to do this several times. We have not sent a letter but anyone in contact with the customer is prepared to explain our position. We have only had one complaint from a client who protests no matter what the charge is, but he pays & calls again. There is little reason to provide a service if a reasonable return on investment can't be collected. I do not want customers that won't pay a fair price, justified by good service.


----------

