Risk of Competing on Price

By Burt Robertson

Many contractors have lowered their standards thinking they have to sell low end, low quality equipment. They maybe saving their customer a few dollars, but what does it really cost them? As reported by the February 2005 Consumers Report, the lower end bottom of the barrel cheap equipment are listed at the bottom of the ranking. Goodman for instance, was among the more repairprone of the 12 big brands in Consumers Report 2004 annual questionnaire. What does this mean for you if you are selling the low end equipment? A reputable heating and cooling contractor selling and installing equipment should stand behind their equipment and workmanship for one year. The contractor has to figure into his price the cost for any unforeseen service calls for any parts failure or service problems. When selling the low end as reported by Consumers Report you can expect to have more service calls, in spite of the quality of your installation. Your customers can also expect to have heat outages, when purchasing the low end equipment. Why have your company’s Many contractors have lowered their standards thinking they have to sell low end, low quality equipment. They maybe saving their customer a few dollars, but what does it really cost them? As reported by the February 2005 Consumers Report, the lower end bottom of the barrel cheap equipment are listed at the bottom of the ranking. Goodman for instance, was among the more repairprone of the 12 big brands in Consumers Report 2004 annual questionnaire. What does this mean for you if you are selling the low end equipment? A reputation tarnished by installing low quality, low end equipment. Now lets talk about Ruud’s very competitive “Weather King” builders line of equipment. What is the difference between a builders model and low end equipment.? Ruud’s Builder model is the same high quality furnace sold under the Ruud logo with a few minor changes to lower the price. The integrated furnace control comes less the connections for humidifier and electronic air cleaner. The insulation is removed from the furnace jacket, as the builders model is usually installed inside the building in a heated area. The warranty is lowered from Ruud’s standard five year to a one year on the Weather King line. The low end equipment manufacturers have no high end to scale down. For a copy of Consumers Reports heating equipment you can download it from our web site, yaunco.com / Downloads.doc.

Copyright © 2002-2008 - Yaun Company Inc.
All Rights Reserved
Last Updated:02/07/2008
yaunco@yaunco.com