Parts Cost - Jake Raby - Scarcity and Cost
09-09-2023, 06:02 PM
#17
Nordschleife Master
Join Date: Oct 2015
Location: Zuffenhausen, Georgia
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I can empathize with everything in that video. I work service in the commercial HVAC industry and getting functional parts and equipment is a constant challenge. By that I mean brand new parts and equipment. Everything made is a complete POS. Doesn't matter, top name manufacturers or not. Getting a large piece of equipment installed and working right at start up is 50/50 at best. There's almost always something wrong with it. QC is nonexistent.
It's almost impossible to make money on jobs. How do you cost in warranty work for defective equipment on a bid? Is it a couple hours labor or days? It's always a loser even if you go back after the manufacturer for reimbursement. They never pay your full costs and make you justify every penny when it's their screw up. Plus the look on a customers face when you tell them their brand new Air Conditioning equipment doesn't work and the fix is weeks or even months away, priceless. Trane, Carrier, York, doesn't matter. Same problems either one. Bad engineering, sloppy or negligent manufacturing or bad components at start up. Tells me it was never tested before it was shipped.
Same story for replacement parts. Bad out of the box or fails in a day or two. That means call backs, warranty calls and that service call made $0 or even negative dollars. The tech does everything right and we still lose.
It's a tough business these days
It's almost impossible to make money on jobs. How do you cost in warranty work for defective equipment on a bid? Is it a couple hours labor or days? It's always a loser even if you go back after the manufacturer for reimbursement. They never pay your full costs and make you justify every penny when it's their screw up. Plus the look on a customers face when you tell them their brand new Air Conditioning equipment doesn't work and the fix is weeks or even months away, priceless. Trane, Carrier, York, doesn't matter. Same problems either one. Bad engineering, sloppy or negligent manufacturing or bad components at start up. Tells me it was never tested before it was shipped.
Same story for replacement parts. Bad out of the box or fails in a day or two. That means call backs, warranty calls and that service call made $0 or even negative dollars. The tech does everything right and we still lose.
It's a tough business these days
09-09-2023, 09:53 PM
#18
Rennlist Member
All these parts go into manufacturing new equipment and the QC sucks. The prices have gone up 30-40%, there's typically a 6 month lead time and they're just pushing them out the door. Brand new equipment missing PC boards, flat on charge, or just don't work. We started up 3 large roof top units last week. 1 of the 3 was flat with an obvious leaking expansion valve. It's impossible that it could have been charged correctly from the factory but that's how they shipped it. They just don't care. That's the HVAC biz these days.
Yeah, capacitors take a beating from the heat. Luckily they're about the most inexpensive part to replace.
