service guy

I posted this at the Ridgid forum, and I thought it would be good here too:



Yet another reason I am slowly transitioning to mostly drain-cleaning. Not only are water heaters being made worse and worse every year, but the cost keeps going up and up. Here in NC, it is supposed to be illegal for anyone to install a water heater without pulling a permit and having a plumbing license. Yet, every day unlicensed handymen install water heaters without a permit.
Now that water heaters are so expensive, and my unlicensed competition is so cheap, its gotten to the point that I rarely ever get to replace one. Most people call for a price, then they keep calling until they get the cheapest guy in town who has no license, no insurance, and will not bother with a permit.
I used to get upset about it, but now I have come to accept it. It wont change, the almighty dollar drives the market and people will continue hiring unlicensed, uninsured installers as long as they are cheaper than a legitimate plumber.
I just decided to move one. I sell a water heater maybe once a month for customers who are willing to pay a little more for quality, permitted, inspected, insured work. Other than that, I get lots of "I'll just get it at lowe's" (and have my handyman install it).
So now I have some of the best drain-cleaning/inspection equipment in the county and hopefully within a few years I'll have so much drain business that I won't even bother with the ridiculous politics of water heaters installs any more.

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Ron

We don't have that problem here, but yes all water heater installs require a permit.

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Stephen Hawking: If the government is covering up knowledge of Aliens, they are doing a better job of it then they do at anything else.

Wiser

Have you ever thought of doing work for Lowes? Our Lowes informs their customers of code requirements (water heater stand, exp. tank etc.). From what I understand you decide how much you want to do for them. It may be a way to gain valuable customers.

We love doing water heaters because that is the most profitable for us. However, we don't do them for Lowes.

service guy

Lowe's pay absolutely garbage pay. No way I will work my way into bankruptcy working for them. They get the lowest bottom-feeders around to do their installs for peanuts.

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Wiser

I think our Lowes pays $240.00 for 40 gallons or less, simple swap on electric. Extra money for expansion tank, shut-offs etc.

Ron

Is that labor only?

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Stephen Hawking: If the government is covering up knowledge of Aliens, they are doing a better job of it then they do at anything else.

service guy

Last I heard, they were getting $300 for an install around here. Of that money Lowe's takes HALF! So the plumbing contractor gets $150. He has to pick it up at Lowe's and bring it to the customer's house and install it to code for only $150!!! I can't do that.

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Wiser

Plumbing labor only. It doesn't sound like much, but when you factor in you didn't spend anything to get the customer (let's use $50.00), $290.00 for 2- 2.5 hours work isn't bad for the small guy starting out. A local contractor with 8 trucks started out that way - I thought it might be a good way for Carl to get his name out there.

Wiser

I know a guy who works at Lowes here, I will ask if they keep 50%.

As a side note - our Lowes laid off all their full time employees and only kept part timers due to the slow economy.

service guy

Money isn't the only reason I won't work for the DIY stores. Working for the bigbox stores I consider "sleeping with the enemy."

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