Posted by ss55 on February 11, 2017 at 13:11:15 from (63.147.218.40):
In Reply to: OT Service economy? posted by Dave H (MI) on February 11, 2017 at 11:44:50:
It's possible that some of the bigger outfits specialize in new installations and they have become are very successful at that. They only need to hire or train employees (or subcontractors) to do new installations, no trouble shooting, no searching for hard to find parts, no surprises, and no badly under-quoted jobs. They can do a tear out and new installation in half a day. For them it may take more time for less profit to repair an existing furnaces than to replace it. Through good advertising, they get first crack at a most potential work and they can pick and choose which jobs they want. They can easily afford to leave all the repair work to the smaller one man shops and moonlighting retires who are not their direct competition.
The trick for the customers is to call the little guys for repair work and the big guys for new installations.
In any industry, few businesses can be all things to all customers. For most successful businesses it is a necessity to pick and choose which jobs they can do competitively and which ones they need to pass over. Some will "no quote" the jobs they don't want. Most try to avoid alienating future customers, so they quote a enough high price on the jobs they don't want so that if they do get the job it is well worth their extra trouble.
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