billing a customer for a product that needs repair on day 1

[huggytree]

installed a waterheater for a customer this afternoon and it didnt work

i set up the repair for tomorrow with a repair company..it should be functional in 24 hours

i billed him and collected $1,280 for my work, but he did gripe about paying for something that doesnt work, but in the end agreed to pay

it has a 6 year parts warranty and a 1 year bumper to bumper warranty...so the repair will be no cost

what should i have done?

1. collected the $ like i did
2. waited a few days and sent him an invoice

i wouldnt be happy either paying for something that doesnt work...especially $1,280

the way i looked at it is i did everything i was supposed to do and did it correctly....it was the water heater companies fault....but on the other side im the one who supplied the defective unit...and now i got paid before its functional

[nealrm]

From the customer's view you didn't do what you were supposed to do. He hire you to get the hot water working in his home and you didn't do that. Not only that, he now has to wait around without hot water for 24hrs. Is he now going to lose a days work staying home for the repairman? If so, then the repair does cost him a days pay.

At the very least, I would have waited until after the unit was working to collect.

[seolman]

I think you said it best yourself huggy: "i wouldnt be happy either paying for something that doesnt work...especially $1,280". If you want them to call you back or recommend you it is a good idea to put yourself in the customer's shoes.

[Dan Furman]

Ultimately, this will be seen as your fault.

Personally, I'd say "no, take it out and get me another one, or I'm not paying". No way I accept a water heater that broke on day 1.

[Steve B]

I would have wanted another unit also (and refused to pay). He paid for a brand new working unit - and he didn't get one. After day two - he's going to have one with a repair on it already. If I were you, I would have taken it back to where I got it and let them deal with the warrenty. That's B.S. that the customer has to deal with a repair/warrenty on his first day of ownership.

[huggytree]

he is not working right now and is around the house...so scheduling isnt a problem

i think i should have invoiced him, but told him to pay after its functional

as far as the repair---its not like they are going to replace some minor part....its going to be the whole controller most likely...that doesnt mean the heater will be a lemon and need future repairs......

to replace the whole heater is a MAJOR thing....its more time than the original replacement because i have to have the old one drained and dissembled for when they drop off the new one...it will end up being a 3 hour project and i wouldnt have been able to schedule it until the exact same time as the repair....so he wouldnt get hot water any sooner....it just would have been $400 out of my pocket

did i lose this customer for future jobs...probably......i do agree with pretty much all your statements......but my greed is making it difficult to accept..

i will be calling him today....if there are any further issues that arent resolved today i will be there tomorrow with a new heater!

thanks for the input....its what i expected and deep down know myself

[Spider]

... i do agree with pretty much all your statements......but my greed is making it difficult to accept..
i will be calling him today....if there are any further issues that arent resolved today i will be there tomorrow with a new heater!
thanks for the input....its what i expected and deep down know myselfCongratulations! Realizing this is probably the biggest lesson you have had to learn in business, Dave. If you are wise, this will be a turning point for your company. Until now, you have been on the road of being just another well-paid self-employed journeyman plumber. Now you have the opportunity to turn this into a real business - and by "real business" I mean a flourishing, prosperous model of free enterprise entrepreurship, with happy employees, happy customers and a happy, abundant lifestyle, at peace with the world around you.

Do you think Bill Gates set out to be the richest man in the world or to help put a computer on evey desk and in every home? Do you think he worried about spending an extra $400 to keep a customer happy? If he had set out to be rich, Microsoft would have remained a little software company on the fringes of the tech world, not the huge satisfying business it is today.

Go Waukesha Plumbing! Go Dave!

[Dan Furman]

i will be there tomorrow with a new heater!


This is what needed to happen regardless - even if it cost you money. But you alread know that.

I definitely agree w/ spider here - it's things like this that differentiate the little guys from the big guys.

[AllCeasonsDesign]

Huggy,
I see both sides of your dilema. As the business person I would have wanted to be paid and as the customer I would have been very angry. I think however; that while $400 out of your pocket seems like a huge amount, in the long run, it would have been a small price to pay for a happy customer. Word of mouth is the BEST marketing you can have. And a happy customer who tells everyone how you went out of your way to solve a problem for him would have paid out in the end. Just my opinion.

[huggytree]

i called the customer this morning to assure him the issue would be repaired today or else i would be there tomorrow with a new heater...he didnt seem worried and is taking it in stride

when he calls back this afternoon when the repair is done i will offer him $100 for his troubles....at this point its the best i can do to try and salvage this customer... he used to be in the construction business and seems to understand the whole situation....$100 pays for his time today to be available for the repair person..im guessing i have a 50/50 chance of retaining him with the financial offer

[Dee2x]

I want to point out one more thing Huggytree. We live in a world where one complaint online can cause you to lose not only the one customer you disappointed but all those potential customers that read the bad review. I go to Angie’s list, BBB and other websites looking for reviews for repairmen and products. I tend not to buy a service or product that has bad reviews. With online reviews, it’s very important, now more than ever to do your best to please your customers.

[huggytree]

repair man found the new heater was leaking....so the homeowner goes another day w/o hot water

i will be replacing the heater tomorrow...homeowner is taking things very easy....he even said 'take care' when we said our good bye's today...we talked 3x today

he said he knows its not my fault and the repair man said he never saw a leaker on a brand new unit with this brand name.....so the repair man helped me a bit by telling the homeowner its a quality unit....just bad luck

all will end well...i think i got lucky it is an easy going homeowner....a bitchy type could have ended on craigs list or BBB for sure...

new policy: if its defective replace it myself and dont ask for a check until whatever it is is working properly....its a new problem that i havent really run into before and a new policy to make myself more professional...........

i may be able to collect some $$ from the waterheater company...im not expecting full payment, but ill bet i can get 1/2 back

[Steve B]

I think that's a great way to turn this into a positive situation. You may get the extra leeway because of his experience in construction.

[Dan Furman]

repair man found the new heater was leaking....so the homeowner goes another day w/o hot water

i will be replacing the heater tomorrow...homeowner is taking things very easy....he even said 'take care' when we said our good bye's today...we talked 3x today

he said he knows its not my fault and the repair man said he never saw a leaker on a brand new unit with this brand name.....so the repair man helped me a bit by telling the homeowner its a quality unit....just bad luck

all will end well...i think i got lucky it is an easy going homeowner....a bitchy type could have ended on craigs list or BBB for sure...

new policy: if its defective replace it myself and dont ask for a check until whatever it is is working properly....its a new problem that i havent really run into before and a new policy to make myself more professional...........

i may be able to collect some $$ from the waterheater company...im not expecting full payment, but ill bet i can get 1/2 back

You did good, Huggy.

[KristineS]

Sounds like things turned out well, and you learned how to go forward with a similar situation in the future. So all's well that ends well.

[huggytree]

so im backing in to the guys driveway and my bumper(which sticks way out) breaks a lawn ornament next to the driveway.........i havent broken anything like this in over a year....of course it happens on THIS job

swapped out the heater in 45 minutes (since everything lined up)

homeowner said he understood, but the wife was very angry...he told me about how he boiled water on the stove for the wifes bath water and how they cant do any dishes....but he said he was understanding and it wasnt a big deal to him

i offered $100 for the damaged lawn ornament and for his troubles...he declined....he said to give him a discount NEXT TIME he uses my services...then gives me a Soda and offers me a snack....

i turned on his water heater and Whooosh it fired right up....hot water in 45 minutes i told him....we shook hands and it ended well

i filled out the paper work to attempt to get $120 from the water heater company (its the max they offer).....i figure ill get nothing since the repair plumber i called in will probably file first and get the $

oh well....it was a slow day, so i had time to handle it....

lesson learned! and customer kept!