Yet Another Reason Why Sears Has Lost My Business

[cabinetman]

Think about being the "estimator". I don't charge to give an estimate. In fact some estimates could take a day or longer to figure out. Service calls to a home usually have a flat fee just to show up. More likely than not, the homeowner has called for several estimates for comparison. If you can't get paid for your time, you're working for nothing.
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[sweensdv]

I think the sweendv's point is that they did not offer to credit the estimate fee to the cost of repair. So they would pick up their $100 in addition to any repair work they did. If they'd said, "it's a 100 dollar minimum whether we fix it or not", that would change the whole situation. Perhaps that's even what they intended, but if so, they didn't explain it that way according to sweendv.

Thanks for translating my garbled thoughts, that's exactly what I was trying to get across. At no time did the nice lady ever indicate that the charge for the estimate would be waived if I had them do the work.

[crokett]

Thanks for translating my garbled thoughts, that's exactly what I was trying to get across. At no time did the nice lady ever indicate that the charge for the estimate would be waived if I had them do the work.

When I had my washer fixed it was waived, or at least it was included in the final repair cost. I specifically asked that before having them come out.

[cgallery]

I think you guys are being too sympathetic to Sears. Here is a recent thread at SMC over the same thing happening w/ GE:

http://www.sawmillcreek.org/showthre...stimate&page=2

Once upon a time, Sears provided estimates right over the phone. You gave them the part/model #, and they gave you a range of costs to repair the item, depending on the symptom. Remember those days? I did so twice, once on a washing machine, once on a trash compactor. Why did they stop doing it the old way?

The answer is simple: They make more money doing it the new way.

I'll bet you dollars to donuts that they make substantially more money writing estimates than they do performing repairs.

[woodturner]

Why did they stop doing it the old way?

The answer is simple: They make more money doing it the new way.

The simple answer is often not the correct answer.

Why did they stop doing it the old way? Consumers became unreasonable in their expectations. If Sears quoted a range of $200 to $400 for a repair, in the "old days" a consumer understood that there bill might be $200, $400, or somewhere in between.

Today's consumers think that means their bill will be no more than $200 - and they complain vociferously if you "overcharge" them by charging the real cost of the repair, if that cost is over $200.

[woodturner]

For $10/hour, they can get someone qualified to drive to your house and deliver an estimate.

Where do you live? In most areas, you can't get ANYONE to do ANYTHING for $10. When you consider that a clerk at any of the chain stores makes that or more throughout the country, and they can't keep people in the jobs because of the low wages, it's not surprising that no one will work for $10/hour.

$10/hour is effectively the "real" minimum wage.

[sweensdv]

.......................

Why did they stop doing it the old way? Consumers became unreasonable in their expectations. If Sears quoted a range of $200 to $400 for a repair, in the "old days" a consumer understood that there bill might be $200, $400, or somewhere in between.

Today's consumers think that means their bill will be no more than $200 - and they complain vociferously if you "overcharge" them by charging the real cost of the repair, if that cost is over $200.

Well, I know that I'm smarter than to think that! I think you do people in general a grave disservice by making such a general statement. But then again, the simple answer is often not the correct answer.

[cgallery]

The simple answer is often not the correct answer.

Why did they stop doing it the old way? Consumers became unreasonable in their expectations. If Sears quoted a range of $200 to $400 for a repair, in the "old days" a consumer understood that there bill might be $200, $400, or somewhere in between.

Today's consumers think that means their bill will be no more than $200 - and they complain vociferously if you "overcharge" them by charging the real cost of the repair, if that cost is over $200.

LOL. So you're implying that customers are happier with the current arrangement?

Of course not. Sears didn't do this because they were worried about that percentage of customers that were charged at the higher end of the range.

Every single thing that any business driven by MBA's has done in the last twenty years has been to one end: Increase short term profitability. Period.

[woodturner]

Well, I know that I'm smarter than to think that! I think you do people in general a grave disservice by making such a general statement.

Saddens me, too, that experience and surveys show that to be the case. Keep in mind "we" are not the typical consumer by definition - we (presumably) know how to use at least one tool, which puts us in a different class than 93% of consumers.

If we don't think every business is "the man" and out to get us, the class is even smaller.

[cgallery]

Where do you live? In most areas, you can't get ANYONE to do ANYTHING for $10. When you consider that a clerk at any of the chain stores makes that or more throughout the country, and they can't keep people in the jobs because of the low wages, it's not surprising that no one will work for $10/hour.

$10/hour is effectively the "real" minimum wage.

I respectfully disagree.

First, there are between three and five million workers in the US that make the minimum wage, which this week increases to $7.25/hour.

Second, if you read this study:
http://www.bls.gov/oes/2008/may/oes_nat.htm#b49-0000

You'll see that there are gobs of occupations that require no college education that pay approx. $10 per hour. Some a little less, some a little more.

Third, they show that the average for appliance repair guy is $16/hour.

So I stand by my position that even if you have to pay your guys $20/hour (throwing in benefits now) that at $160 per day, if you can generate five $100 estimate fees, you're doing pretty well.

But my entire point is, GE/Sears are looking for guys they can pay LESS than $16/hour. They don't want to fix stuff. They want to write estimates. I've been invited to seminars where they teach this method. Over twenty years ago a larger residential plumbing outfit went through the changeover to minimum trip charges + flat rates (quoted by the tech once he gets to your home). I was standing right there when the owner told my boss all about how it was going to revolutionize his business.

I'm betting that the major qualifications (in order) to be an appliance repairman for a national outfit are: (1) A clean driving record. (2) Knowing "righty-tightly, lefty-loosy."

[tfischer]

Sears lost my power equipment dollar many years ago, when I bought a self-propelled lawn mower, one of their better ones, and it died after 2 seasons. The replacement parts were going to be 90% of the cost of the mower, not including labor, which I was going to do myself.

I scrapped it for a Honda self-propelled, and then later after we moved, a John Deere tractor, and both have been trouble-free. Don't by Crapsman power equipment, it just doesn't last.

[Kristofor]

I'm betting that the major qualifications (in order) to be an appliance repairman for a national outfit are: (1) A clean driving record. (2) Knowing "righty-tightly, lefty-loosy."

Well, considering I've been able to fix issues on a washer, dryer, water heater, range, water softener, and air conditioner with no specific training on any of those systems, I would tend to agree that those are the requirements. However, pre-internet I probably would not have been able to complete one third or maybe even one half of those repairs in a timely fashion.

[dkerfoot]

It is pretty clear most of the people commenting think that the cost of a service call is the hourly wage of the person who shows up. That is in fact a small fraction of the actual cost. Consider:

1. The people and systems required to receive and schedule the trouble call. These people require management (direct management plus HR), office space, supplies, furniture, heating, cooling, electricity, taxes, accounting, vacation, health insurance, sick days, worker's comp, training, etc...

2. The local repair center that actually handles the call. They need management, office space, warehouse space, parts inventory, supplies, furniture, heating, cooling, electricity, taxes, accounting, vacation, health insurance, sick days, worker's comp, training, work vans, gas, liability insurance, background screening, tools, etc...

I am not even getting into the people and travel required to manage and maintain the various systems, credit card fees, charge backs, collections, etc...

To put it in perspective, I was a self-employed computer tech for a number of years. I charged $100/hour and was busy "working" an average 14 hours a day, six days a week. Best Buy charges an average of $165/hour for its Geek Squad on location service and can only handle a very limited set of pre-defined services. I was right in the middle for this area regarding my hourly charge and was capable of handling 100% of the needs for residential through businesses of up to 75 employees. I don't want to get into a resume, but I have excellent communication, business and technical skills.

My goal was to have 4 BILLABLE hours per day - reality was more like two. Remember - I was always busy - working with a focus that only a business owner has.

Clearly, many people think that I would be really easy and lucrative to run a small appliance service business. All you need to know is "Lefty Loosie" right? I encourage you to give it a try and see how that works out for you.

One final note. There was a criticism that Sears had changed its service model so that they can make more money. Um... That of course is the only reason there is a Sears - right? To make money?

And yes, someone will say "They'd make a lot more money if they provided better service." Perhaps. If that is true, there is an excellent opportunity for someone to makes lots of money running an appliance repair center in our area, right? It is easy to say, but hard to do. Good luck.

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[Uncle Cracker]

I do feel your pain, Doug...

[tfischer]

My comment had nothing to do with a service call -- I understand there are lots of expenses there. I just would expect that in a $350 mower, two small clutch parts deep inside the transmission should cost less than $280. In fact, the entire transmission assembly (consisting of several dozen parts) cost $250. Explain that one?? Again, this was parts only, no labor (save for the people employed to stock, ship, etc the parts).

Add that to the fact the thing broke down after 2 seasons, when my Honda and JD have been going strong for many years, and you have one disgruntled Sears customer.

-Tim