We see it everywhere: "Lowest Price in Town!", "50% OFF!","HUGE SALE!!", "We Are the Low Price Vendor!"
The low-cost selection is so pervasive in our culture today that it seems price is the number one factor in many peoples' buying decision process. I'll admit, that I have bought a good/service based on lowest price as I am sure everyone who reads this has. While this is perfectly logical when it comes to small purchase of like items, it is not the most effective buying process for many things, especially those that have a significant impact on our lives. Today, I want to look at this issue in the HVAC maintenance contracts arena and the impacts that it has. I truly feel it is in the best interest of the clients that we, as contractors, serve to move away from this sales and marketing angle. I will start off by saying selecting the lowest-cost vendor is absolutely not going to translate to the least expensive maintenance program.
I understand that may seem like a biased statement, based on the fact that I spend a majority of my awake hours selling contracts. However, I see my role and responsibility as more of an educator than a sales person; more of a partner than an transaction agent. As an educator or partner, I want what is best for the party that I am assisting, and that means securing a program that will produce the best results over an extended period of time-not just at the time of signing the contract.
I feel the following phrase has been uttered by someone around us at some point in time: "You get what you pay for." If you have not heard it before, I think it makes sense. How about another phrase to further simplify: "Good Products/Services are not cheap, and Cheap Products/Services are not good" If or when you are in the process of getting quotes on maintenance contracts and one contract is significantly lower than the other, ask why. I have been in numerous conversations where I am the higher-priced vendor, and I have been asked why I am higher than the other contractor. I, in turn, have asked why they are lower. The work needed to correctly service the equipment is the same regardless of who is performing it. So, how can it be done so much cheaper? When deciding based solely on cost, something is typically left suffering. It has been my experience that maintenance is not performed to the needed level, which leads to a whole host of complications (and expensive complications at that). Be sure to compare the scope of work on the contract proposal.
When the maintenance is not performed to the needed level, the aforementioned complications are three-fold: increased repair, decreased comfort conditions, and decreased equipment life. The increased repair calls are due to the lack of proactive maintenance, that could typically catch the issues prior to it becoming a large problem. When a contract is the lowest-priced, the contractor simply cannot afford to perform the amount of maintenance needed. They are in business to make money, plain and simple. Another reason, and perhaps more controversial, is the practice of selling an extremely low-priced maintenance agreement and then "making it up" on repair billing. Again, with reduced maintenance comes reduced performance. Inconsistent heating/cooling, poor Indoor Air Quality, and downtime due to equipment breakdown are potential consequences of the low-cost contract. Finally, HVAC equipment has an absolute finite life just as any other piece of mechanical equipment. With proper maintenance we can extend the life of that equipment, but without it we can severely limit how long we can claim that equipment as an asset. Think about your car, and how much longer it will last if the oil is changed, tires are rotated, etc. We can expect hundreds of thousands of miles with service and maintenance. However, if we slack on these relatively inexpensive tasks the engine could seize up, or we could require very expensive repairs to keep the car of the road.
Instead of buying and selling based on the bottom dollar price, let's focus on the value we can bring. Be sure that your contractor puts together a program that will help your organization reach its physical and financial goals. Ask questions, be sure you understand what you are paying for. The high price doesn't always mean the contractor is trying to "get one over on you" and the low price doesn't always mean the best "value" or the cheapest overall cost. As the last post outlined, put a process in place to measure the effectiveness of the plan and keep it on track. By acquiring this mindset, I can say with absolute certainty that the costs of your HVAC system will be reduced-and not because you selected your contract based on cost.
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