Why ASKBOYD? Because It Was The Right Thing To Do!
September 30, 2008
Sometimes we need to say something out loud. We have such a strong conviction to do the right thing, and we must find a platform and shout our beliefs, especially when we think that there is an imbalance of justice. That is why I built ASKBOYD.
I am the creator of this information site. I think it is important for you to know why I felt the need to build and maintain this platform. Most of my last decade has been spent working directly with HVAC contractors at the wholesale level. My positions over this time have ranged from a sales rep. up to being the Vice President of a wholesale Distribution company. One thing that never changed over the course of that decade, was daily contact with contractors. We have helped them decide, what is the best equipment for them to install on individual jobs, and have helped them profit from these installations. Many of these contractors have been most demanding. They expect levels of service that are above and beyond the call consistently and yet negotiate pricing that barely allows the wholesaler to survive.
One constant that I noticed as I was trying to satisfy the needs of the higher maintenance HVAC contractors, was that they were very vocal about the level of profits that they were making from homeowners, to the point of flying in the face of logic when they were barely allowing their supplier to survive.
I may have told this story somewhere else on this site, but I think it bears repeating. Last year, just days before I left the wholesale HVAC industry to build ASKBOYD, I was visiting with a contractor customer. It was winter and extremely cold outside. This contractor, who has a very big presence in my area, with several highly visible service trucks, billboards, and huge Yellow Page ads and news print ads, felt the need to tell me about a job that they had just completed. For the sake of brevity, I will just give the highlights. They received a call from a family with young children whose heat pump had “failed”. They talked (code for pressured) the family into a very expensive system change-out ($8,500). With huge smiles they explained to me how they only paid (from my company) $2,100 for the equipment. They were able to send 2 employees in for 8 hours each and complete the installation. Simple math says, $8,500 - $2,100(equip.) - $400(labor) - $400 (supplies) = $5,600 PROFIT. This comes to $700 per hour profit for this job. My son is a neurologist. He does not make anywhere near that kind of money.
The worst part of the story is to come. It was also discovered that the “failed” heat pump was really just a burned out run capacitor and they planned on selling the used unit to someone else.
The above event was my last straw. I decide that my expertise and knowledge was being wasted on a group that did not appreciate me, and was not contributing to the greater good. Homeowners needed a voice and needed an ally. So ASKBOYD was created. Since then, I have also been involved in another project, Home Air Direct, that offers product and assistance for homeowners, both do-it-yourself and those inclined to just save money, who are struggling with the high cost of heating and air conditioning replacement projects.
In the days to come, ASKBOYD will be posting additional articles that will specifically help you with your need to replace your very expensive home heating and cooling equipment. Sign up for our newsletter to be alerted when these articles are posted. Saving thousands of your hard earned dollars is as simple as knowing what the pros know, where you can acquire your own equipment and how you can play a big part in a project that is yours to begin with.
Thanks and Stay tuned for more.
Boyd, from ASKBOYD.com
That is indeed very helpful. I hope ASKBOYD would greatly impact the high cost of hiring contractors and at least minimize if not totally stop those who charge high.
Interesting article and very true about the unfotunate practices of HVAC contractors. Being in the midst of technicians, I have heard ugly absive practices being purpetrated on the unwary customer. That’s why it is common practice to get sevral opinions from different HVAC companies before making an expensive decision. However, I must also come to the defense of the contractor in general.
The HVAC business overhead is the main killer of the business and leaves little in the way of profits. It’s not uncommon for annual earning to be as little as 5% after factoring city licence fees and permits, state contractor license fees, bond insurance, workmens comp insurance, contractors liability insurance, medical benefits, not to mention the most biggist of all which is: advertisement costs news paper, several yellow book directories, internet clicks, and tools, vehicle purchases and maintance cost; and finally federal and state board francise tax. Oh, and of course before I forget, the HVAC commercial building has other astronomical costs, building insurance, office workers, utility bills, telephone bills, not only the office, but the technicians have them too. And add office supplies, invoices and business cards, accounting cost.
While it’s easy to be shortsighted on percieved abuses, the broad picture is not pretty for the contractor either. The contractor is constantly being undermined by the technician when he does side jobs that take away from the contractor who has to play by the rules. I really don’t know of a contractor who is doing well these days. I have recently noticeD a HVAC parts house displaying a large banner saying “OPEN TO THE PUBLIC”. Now what does that say to that would have been 5% profit margin?
As it is right now, I can’t afford to hire any employees, so I do as much work as I can myself. That spells trouble when you have unavoidable overhead costs that can’t be met. So remember the true price parts of those installations is really in the cost of being able to provide a professional consumer safe service.
Joe,
Thanks for the response. I do understand completely that the business of HVAC business is a huge load and often when the fiscal towel is wringed out there is little left. And I also know and acknowledge that there are many good honest contractors. My example is not intended to disparage all, just the ones who place the black eye on their industry.
I wish you the best of luck with your business and thank you for being one of the good guys.
btw…. I looked at your website. Very nice.
Boyd