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Air Conditioning Repair Pricing

JeffPMR
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  • 1 month later...
bantar Community Regular

bantar

Posted
Posted

We charge a flat rate of $129.99 for Evac and Recharge, which includes a 2nd Evac and Recharge for any repairs.  Many around us have pricing ranging from $49.99-$89, either with 1 lb 134a included or none included.  Many seem to charge twice if repairs are needed.   Our typical COGS for R134a is about $5-7.    From memory, I think folks are selling 134a for $3-4/ounce, but my memory on this is iffy.   Frankly, I chose the flat rate model to reduce the accounting of the 134a used and the variable price points.   We document our findings, but don't adjust billing.    We do have to communicate well with our pricing seemingly higher than others, but we utilize the "one time charge" that helps to close it.  

Looking at the R1234yf, but demand is not there.  We are up to about 4 jobs missed, but this doesn't yet justify a new machine.   I'll reconsider when we hit 10+.  We will then move to a service + freon model pricing for that service as the COGs is too high - $70-$120 depending on the car.   Right now, I'm sending folks straight to the dealer for this service and the accompanying sticker shock.  It won't hurt for them to get beat up on their new technology pricing.

  • Like 1
bantar Community Regular

bantar

Posted
Posted

I'm intrigued at the "return at least twice".   We generally ask the to return a week or two later for a single leak check.    I'm guessing that you are just giving it more time to manifest.    If you do find a leak in one of these checks and let's say replace a high side line, do you charge for the recharge a 2nd time?   We bill for the new work only.  We generally don't if it's in our leak check window.   If they have a known leak, and they don't fix it, then the next recharge is on the customer again.

What it interesting is that this method of pressure leak checking, waiting to see if a leak is present, is (seemingly) wrong for 1234yf as the loss of refrigerant is too expensive.  I'm trying to figure out how we will approach leak testing for 1234yf.   We currently utilize dye and a leak detector (sniffer), but don't currently use CO2 or Dry NO2 pressure testing.  There seems to be risk with over-pressurizing, when improperly used, by a careless tech.   I'm considering a service + refrigerant charging model to deal with leaks after service.   Much more work, and more expensive machine, so the service should be priced much higher.  I've been hearing a low of $350 on Honda's to about $600 on trucks.

I do like your dual pricing model and might consider the same.

  • 1 year later...
Hands On Community Regular

Hands On

Posted
Posted

I am reviving this thread. I had my first R1234 car in, we replaced an engine. I paid the dealer $550 to recharge it for me. that is 10% of a machine cost. I am considering pulling the trigger. I was hoping to find some reviews on machines.

10lb bottle is under $600

  • Like 1
Hands On Community Regular

Hands On

Posted
Posted
56 minutes ago, Joe Marconi said:

Before I sold my company, I purchased a Robinare. Good unit, good support.  You will need to charge. The $550 you paid is not uncommon. Make sure your register it and buy the warranty. 

My R134A is robinaire. I found complaints online that robinaire can not get replacement parts for their 1234 machines.

  • 3 weeks later...
Hands On Community Regular

Hands On

Posted
Posted
12 minutes ago, DUFRESNES said:

Last year we had 5-6 people that had yf1234.  We purchased a robinair in December, thinking we would need it this year.  We have our 1st job tomorrow.  The best price we could get on freon was $675.00 for 10 lbs  The job takes 1 lb.  Question is how much are people charging for  labor.  

I paid the dealer around the corner from me $550 to fill a 2017 pilot. I was going to put myself at $499 for the service for now, and continue to monitor the market.

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  • 2 months later...

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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