My opinion is they took advantage of old, not in touch and desperate people. The fact that the company almost immediately offered a full refund tells me they knew it as well
5 k is about right…use to be 2k…but inflation is outrageous (thanks Biden)…there’s about a 400% increase…watch the video about a guy who hit the reorder now button at Walmart
My father, who was an extremely successful salesman told me once, "You can only screw someone once, but you can do honest and fair business for a lifetime". I do think that bill was over-the-top and so did they apparently.
Don't buy the $400 water heater from Lowes next time. In a pinch if money's tight do what you have to do. Buy the best warranty heater available from a plumbing supply house. They are manufactured different. 3 of the last 6 water heaters I've installed from HD and Lowes were leaking from the manufacturer ( bad welds around the weldlet's on the heating elements and the anode rod) They will honor the warranty but it is a pain in the ass removing the old ( new ) one , returning it to Lowes and installing another POS with pro-rated warranty. I believe it is only pro-rated until the third one. I hope you got a good one but next time or for anyone else always get the best one available and it will be worth it in the long run.
A friend of mine died a couple years ago at 97 who taught salesmanship in the 50s. All of it is still relevant. I only wish I got myself more comfortable with it sooner - when I was in my 20s (I'm 57). His mantra, "if you think it's billable, bill it."
Anytime a tech shows up with a tablet RUN them out the door!!!! Major gas corporation in my area came to my mother's for a water heater problem. It was done!!! I was shocked, same day service and was installed within 4 hours for 1850 and that included a 5-year warranty parts and labor. That company screwed that customer!!
Yeah I used to work for an appliance repair company that made us all use tablets. We started a timer when we walked in for $80 an hour, charged per minute, and upcharged 40% on parts. Then they let me go when business got too slow lol.
Reading the comments its clear people don't have a clue what it costs to be in a home service business. You call a real plumbing company and they come in a 100K truck with 50K in tools and parts and you think they can support that on few hundred in profit on an job. Nothing is stopping people fixing their own crap but they choose not to and when that is the case you have to pay! He said it, he made a $100K in a year and ended up with zero at the end of the year and making 200k does not mean 100k profit, most likely you may clear $40K which you can make at a 9 - 5 job.
I agree 100% this company has fully stocked box trucks. They all go back to a secure lot at the end of the day. All those employees cost a ton of money. The workman's comp, the taxes, the insurances, all the advertising they have to do to keep that many people employed. Its very expensive.
You said you need to make over 100k or you are working paycheck to paycheck. Well I retired 2 years ago at 55 and I didn't make over 100k we had a new house built and are living great. I guess it's how you spend your money
Same day service on the weekend with a 2k water heater yeah maybe $5k. During the week $4k. Going rate around here on high end would be 2-3k for a 40gal (not rush/same day service)
That's an absolutely wild number to me. I rent my water heater from the local electric utility. In the 24 years I've lived here, 2 of them have gone out and needed replacement. Both times the utility sent guys the same day with a new heater and installed it within the day. Zero cost to me. They seem to run a crew that only does that so they are really good and quick at it.
Im heading into year 2 of running my own handyman business full time. You are absolutely right! My first year i pretty much gave away my work and i was charging 75/hr and cutting people breaks. i was very busy but feel like i didnt get ahead. Now im starting to charge more and quote significantly higher than i used to. For reference i was scared to tell someone something was going to cost 1500 last year. Now this year i dont bat an eye at tossing out 5000 quotes
The same goes for buying cars, you go to a big name dealership and they'll overcharge several 1000s more over msrp on any buyer to pay for so much staff, their huge service area, the facility, amenities, advertising, financing dep. ... and on and on. Going to a "neighborhood" small auto dealer can make a difference (case for used cars), on the same car and approximately same condition, skipping so much overhead costs, but better to take the time, research and know a realistic price, to buy cars, water heaters with installation... in general applies to everything. Great video very helpful, thanks handyman!
They might have a huge warehouse, fully stocked, 2 or 3 trucks fully loaded, tons of tools with several employees, but that can't all be put onto one single job. They didn't send every truck out, all 7 or 12 or 15 employees, didn't use every single fitting and part from the warehouse, didn't pull in and use every single tool from the truck. They just use that line as an excuse. Of course they want to make as much money as possible, but there is such a thing as going overboard. I recently bought a new $200 laminate floor cutter. That cost was built into 3 separate jobs for a relatively modest amount. When I go framing (which I mostly do), I'm not going to add on $240 to every single job to cover the cost of the cutter that's already paid for and I'm not even using. I generally do increase the amount by what I consider a standard "tool allowance" which accounts for random maintenance & upgrades/replacement of my equipment, but that would NEVER cause me to charge $13,000 for what most plumbers would call a $2000 job. The biggest jump I did was what I'd normally ask $450, but billed for $940 because it was sudden, same-day "emergency" request.
After taxes you only have like $70k. A small 1 bed house rents for $36k to $40k per year. Car payment is another $12,000 per year. After all your other bills there isn't anything left over.
Definitely worth it… or wait a couple days without hot water and get it for half. Plumbing companies are expensive. My bond payment alone was $2200 for the year, that doesn’t include any of the things you mentioned like insurance, cost to store tools, gas, etc.
Had a plumber come by and told me $5k to replace my water heater. I went to Home Depot and bought the same water heater they were going to install and an "installation kit" for less than $1k. Took me an hour to replace it. $5k is highway robbery.
You charge what the market will bear. It's that simple. Learn to read the customer to see what they value. I run a small HVAC company, small truck (Transit Connect) that is 11 years old. Stocked (as an investment) with what I know I need that will get me in and out. I did a repair. The prior guy wanted to sell for $6k. I won the work. Did 2 hrs, walked away with $800. My cost was $169. The customer valued a working AC unit and maximize his profits on selling the home. I did a warranty insp., units had bad boards. warrantied. 3 hrs of work, no parts, $700. Customer valued warrantied replacements. Prior guy bad mouthed and wanted to sell new ones. It does not make a difference what they COULD have made, the other guy walked away with $0.00 for their effort.
The company I work for charges 1,400 for same day install, if we have the water heater stocked. Price can vary depending on what it takes to get the job done.
A few years ago, I had a water heater fail on a late Sunday afternoon. I called the company I contracted with for A/C maintenance, as they also had a plumbing service, and I had someone come out within half an hour. They guy quoted me a little over $5,000 to swap out my 70 gallon water heater for a 50 gallon water heater (all he could get on a Sunday evening). I must have had a "WTF" look on my face because he immediately started justifying his fee because it was an emergency call, it was on a Sunday, and he was a LICENSED PLUMBER. I told him I couldn't justify the cost and that I'd do it myself. I headed to my local big box store and purchased everything I needed, including adding an expansion tank that I did not have originally, and spent less than $900 for everything. New 50 gallon (gas) water heater, new brass gas flex line, new brass water in & out lines, new drain pan, and an expansion tank with all of the necessary fittings loaded in my truck right before the stored closed for the evening. It took me a few hours to get it done, mainly due to having man-handle the old one out and the new one in to a small closet about 18" higher than the floor by myself. $13,000 for the replacement was a complete rip-off and I'm glad the company was called out and shammed into correcting the situation.
Jeez that company still got out good with making 5k for a water heater replacement. That’s still an insane price for a 2 hour job. Technician is just a fancy word for crook.
Great advice. As a tax accountant, I see people leave money on the table daily. I mostly agree with your S-Corp comment, but it’s not that absolute…. Best to always have a trusted CPA to consider all factors.
$13000 for a tank water heater is pretty steep. Less than $1000 in materials and less than a day of a labor for one "technician" if they are at all competent. $5000 is probably on the high end even. The warehouse bs is just a marketing tool. You can get a water heater from any plumbing or big box store right off the shelf. $1000 in materials, no more than $1000 in labor. If they have over $10000 in overhead per tech per day then something is not right.
I don’t care where you live or what your overhead is 13k for a water heater replacement is gauging and taking advantage of someone……elderly seem to be the target of other things as well….
Depending on where you live and more importantly what you spend, 100k is still plenty. If uncle Bobby is making 100k a year as a plumber he’s probably working part time and taking a month or two to go on fishing trips.
$13,000 dollars for replacing a water heater is beyond ridiculous. Call around to at least five different companies, then call around to your trusted friends to see if anyone knows a plumber who does work on the side, you might get it installed for five hundred bucks.
Christ man, I replaced my MIL's hot water tank for $340. We got a great deal on the tank at Lowes. Then I helped a friend replace his dad's tank. That cost him about $700. Both of these tanks were electric, that made it easier. I have no experience in plumbing and was able to do it.
I replaced (personally) my 40 gal water heater in December 2003 and the heater cost $160 and replaced it again in December 2023 and the heater cost $640 plus misc fittings. Draining and installing using sweat fittings took less than 4 hours for a electric heater. A plumber working a 30 hr week for 50 weeks is putting in 1500 hrs a year. If he's making $200,000 yr gross income (55% of sales) then he needs $363,637 in sales per yr ÷ 1500 hrs = $243 man-hour rate x 2 man crew = $486 per hour for a full day $3,888 labor. Assume water heater cost is $1,280 after 100% markup= $5,168 billing. Even at this price I'd be taking cold showers for awhile and for $13,000 I'd need it to cool down from sticker shock from the cost of labor. This big company sounds like they are a big supply house or plumbing company that subs work out to plumbing companies.
Applewood Plumbing and heating in Denver Colorado charged an older couple $13,000.00 for a water heater. They went to the news and social media and Applewood had to refund there money. They did end up paying $5,000.00 for the water heater.
Isn’t the whole point of having your own supply house and in house staff to cut out the middle man and reduce your costs overall to do work as a company?
I just had a 60 gallon tank installed 2 months ago in 🇨🇦, for $2700. I can’t believe someone would think a 40 gallon tank install, would cost even close to $5000 let alone $13,000! These poor old people
I sold multiple solar water heaters for 9,000 to 12,000 a few years ago And sold hybrid water heaters/nat gas tankless water heaters for under 5k So I’m sure that same company is charging 40% more these days
JFC. Even $5K is bonkers! While I understand elderly abuse is a real-thing, let’s be honest here. Anyone not suffering from dementia or mental illness should realize immediately that a five digit price tag for any basic service call is batshit crazy.
I own a rental property, my tenant called me one day and told me they had to pay $8,000 for a new hot water heater and told me they needed paid back for that No, you never gave me a chance to fix it , I’ll reimburse you what it would have cost me to do it myself and that’s it
If anyone.....ever.....needs a water heater installed for $13,000. If ya'll just have to spend that much, because you want to, I'll install it for you myself minus the cost of the water heater. I dont carry insurance and I dont warranty it, but ill put that shit in. Really, I'll fly to you for that amount of money.
they ended up paying 5k for it?? thats wild. we pay 1100 for a water heater installed in my area. thats funny that her daughter called in to help her and still didnt check actual prices.
So when young people are ripped off at every turn it's their own damn fault but when elderly people who've had 7 decades to find out the cost of a water heater replacement fork over their credit card it's a crime? Lol
I'm at $800:$1200 for a water heater replacement. I'm sure every area is different. If they're older I'll cut them a break. My parents are old and I wouldn't want anyone taking advantage of them
Like you have said ymmv by area, in the Nashville or Memphis market the big companies are charging $3000 to replace a 50 gallon gas water heater. Small companies are around $1500.
In So TX (cost of living not sky high) a 40 gallon elec w/h runs around $475, bigger snooty plumbing companies charge around $400-$600 for installation and price w/h around $800, good handymen do installs from $100-$200 for installation just as good as an unlicensed plumber (working under greedy owners license) going to your house and not trying not TO LEAVE ANY MONEY ON THE TABLE, famous salesman quote. As far as permits companies don't even pull them, not needed around here, I've never seen or heard of a catastrophic leak ever as far insurance purposes.
The customer is shopping for an installed water heater, not investing in the "big company" mistakes in oversupplying inventory, bloating your staff with salesmen worse that car salesmen, and overpaying so you can have a better retirement. The skills required for that installation could be done by a friend or neighbor who is not a scammer for his "services".
My opinion is this is going on all day everyday. I don’t know anyone that wouldn’t charge a few thousand for a $400 heater install 😂. $5000 isn’t fair either.
Of course we all know $13k is too high. Remember to look out for your elders if you care for them to make sure they aren’t making these types of decisions on their own, if they aren’t all together there any longer. That being said, welcome to America, charge whatever you like. As stated in this video your body won’t hold up forever. Make good choices. Clearly the contractor question got caught doing something. They probably shouldn’t be doing, and have been on trial by the court of public opinion and I’m sure it has negatively affected their business. However that sentiment will soon fade, as the service they provide is valuable, and there are people that would gladly pay it, or it would never work.
13k for a basic water heater replacement? I’m wondering if they accidentally added an extra 0 - but seriously, even if a 40 gallon water heater cost $1,000 which is on the high end, I don’t see how there’s $4,000 in labor just to remove and install a new one…. Maybe $500-$1,000 in labor if you live in Los Angeles or Manhattan or Chicago or a really big city..
I don’t like charging elderly. Every time I get asked to go look I’ll fix whatever it is at cost for whatever the part. Almost every single time they give me a huge tip. Or try’s to give me something.
$5k for a tank water heater installed is too high. Home Depot can install same day for less than $2k. $3500 would be more reasonable for the ability replace same day and exceed customer expectations. I would have gave them nothing, the client had to go to the news.
Even 5K is well above fair price for this (what is pictured)….should be a roughly $2500 (give or take a little) job for a legit company….maybe up to 3K for the higher priced company’s out there
@@TheHandymanBusiness Wow, Maybe I'm just used to buying a decent used truck cash so no bill, insurance is nothing, And living outside of a city, In the country a little more, I mean but only 10 miles from a couple city's. So mortgage is only 16k per year, Taxes and insurance on it only 4k a yesr. But it's a 2000sq foot remodeled home. It is pretty nuts how much more to live in a city.
Was it only the water heater or was there more to the job. A lot of information left out to really know what the estimate should have been. If it was only a water heater swap that’s just ridiculous.
Did I charge to much ? Make sure you watch the video before commenting. ua-cam.com/video/o6D7vejfG3A/v-deo.html
My opinion is they took advantage of old, not in touch and desperate people. The fact that the company almost immediately offered a full refund tells me they knew it as well
I can't 'like' this comment enough! They should arrest the owner for theft/fraud and abuse of the elderly.
One thing this industry is missing? Honesty, Integrity and fair pricing. So sad.
I understand making as much money as possible however $13k is complete fraud. $5k is still outrageous. I don't care what your overhead is.
5 k is about right…use to be 2k…but inflation is outrageous (thanks Biden)…there’s about a 400% increase…watch the video about a guy who hit the reorder now button at Walmart
I’m a licensed plumber in cali we charge between 1,900-2,500 for a 40 gal and that includes new supply lines and hauling away old heater
Thats fair and for a good heater probably like a Bradford white not the cheapest rheem
What is your yearly business EBITDA
That's totally fair and I would be inclined to pay that instead of bothering to do it myself because it's a pain in the basement
I paid $1,600 for a 40 gallon water heater replacement.
Yeah, if he keeps on doin that he can file for bankruptcy…good for you tho, you stole that thing
1350 for a 40gal atmospheric draft is the going rate in chynahda
1650 for a 50gal
@@travlangley1 that's like 900-1000 take home pay for a couple hours.
I think $1500-2000$ max for same day water heater. 13k is total BS.
A quality water heater will cost you at least $600-800
@@fern3832$600 heater and one hour job my math says $900 profit 🤷♂️ on $1500
Charging $13,000 for a water heater replacement is robbery. You're just using a wrench instead of a gun.
My father, who was an extremely successful salesman told me once, "You can only screw someone once, but you can do honest and fair business for a lifetime".
I do think that bill was over-the-top and so did they apparently.
Fortunately for the scammers, there's a sucker born every minute.
For $13,000 dollars that "technician" better have some really soft hands to seal the deal.
I went to Lowes and bought a water heater for around $400 and installed it myself and saved a bunch of money!
Don't buy the $400 water heater from Lowes next time. In a pinch if money's tight do what you have to do.
Buy the best warranty heater available from a plumbing supply house. They are manufactured different. 3 of the last 6 water heaters I've installed from HD and Lowes were leaking from the manufacturer ( bad welds around the weldlet's on the heating elements and the anode rod)
They will honor the warranty but it is a pain in the ass removing the old ( new ) one , returning it to Lowes and installing another POS with pro-rated warranty. I believe it is only pro-rated until the third one.
I hope you got a good one but next time or for anyone else always get the best one available and it will be worth it in the long run.
A friend of mine died a couple years ago at 97 who taught salesmanship in the 50s. All of it is still relevant. I only wish I got myself more comfortable with it sooner - when I was in my 20s (I'm 57).
His mantra, "if you think it's billable, bill it."
Anytime a tech shows up with a tablet RUN them out the door!!!!
Major gas corporation in my area came to my mother's for a water heater problem. It was done!!! I was shocked, same day service and was installed within 4 hours for 1850 and that included a 5-year warranty parts and labor. That company screwed that customer!!
Yeah I used to work for an appliance repair company that made us all use tablets. We started a timer when we walked in for $80 an hour, charged per minute, and upcharged 40% on parts. Then they let me go when business got too slow lol.
$13k is way too much, big companies make more $$$ as they get more jobs, max $2500. I usually charge $1500, but I have zero overhead.
A new water heater around here is maybe 2K give or take, and that's all it's worth imo.
Reading the comments its clear people don't have a clue what it costs to be in a home service business. You call a real plumbing company and they come in a 100K truck with 50K in tools and parts and you think they can support that on few hundred in profit on an job. Nothing is stopping people fixing their own crap but they choose not to and when that is the case you have to pay! He said it, he made a $100K in a year and ended up with zero at the end of the year and making 200k does not mean 100k profit, most likely you may clear $40K which you can make at a 9 - 5 job.
I agree 100% this company has fully stocked box trucks. They all go back to a secure lot at the end of the day. All those employees cost a ton of money. The workman's comp, the taxes, the insurances, all the advertising they have to do to keep that many people employed. Its very expensive.
@@TheHandymanBusiness I agree that it may be expensive but to charge 13k and for that to be televised is going to cost this company big time!!
yeah today the $100 bill is the new $20 bill of 2003.
I want to go back
You said you need to make over 100k or you are working paycheck to paycheck. Well I retired 2 years ago at 55 and I didn't make over 100k we had a new house built and are living great. I guess it's how you spend your money
Yup and where you live and how big of family/expenses
@@JonnyDIY
I can get an entire HVAC system and water heater replaced for less than 13K. This was gratuitous
Same day service on the weekend with a 2k water heater yeah maybe $5k. During the week $4k. Going rate around here on high end would be 2-3k for a 40gal (not rush/same day service)
Yep. These plumbers think money comes from trees that I planted...😅😅😅
That's an absolutely wild number to me. I rent my water heater from the local electric utility. In the 24 years I've lived here, 2 of them have gone out and needed replacement. Both times the utility sent guys the same day with a new heater and installed it within the day. Zero cost to me. They seem to run a crew that only does that so they are really good and quick at it.
Im heading into year 2 of running my own handyman business full time. You are absolutely right! My first year i pretty much gave away my work and i was charging 75/hr and cutting people breaks. i was very busy but feel like i didnt get ahead. Now im starting to charge more and quote significantly higher than i used to. For reference i was scared to tell someone something was going to cost 1500 last year. Now this year i dont bat an eye at tossing out 5000 quotes
The same goes for buying cars, you go to a big name dealership and they'll overcharge several 1000s more over msrp on any buyer to pay for so much staff, their huge service area, the facility, amenities, advertising, financing dep. ... and on and on.
Going to a "neighborhood" small auto dealer can make a difference (case for used cars), on the same car and approximately same condition, skipping so much overhead costs, but better to take the time, research and know a realistic price, to buy cars, water heaters with installation... in general applies to everything. Great video very helpful, thanks handyman!
There is a special place in hell for that plumber
They might have a huge warehouse, fully stocked, 2 or 3 trucks fully loaded, tons of tools with several employees, but that can't all be put onto one single job. They didn't send every truck out, all 7 or 12 or 15 employees, didn't use every single fitting and part from the warehouse, didn't pull in and use every single tool from the truck. They just use that line as an excuse. Of course they want to make as much money as possible, but there is such a thing as going overboard. I recently bought a new $200 laminate floor cutter. That cost was built into 3 separate jobs for a relatively modest amount. When I go framing (which I mostly do), I'm not going to add on $240 to every single job to cover the cost of the cutter that's already paid for and I'm not even using. I generally do increase the amount by what I consider a standard "tool allowance" which accounts for random maintenance & upgrades/replacement of my equipment, but that would NEVER cause me to charge $13,000 for what most plumbers would call a $2000 job. The biggest jump I did was what I'd normally ask $450, but billed for $940 because it was sudden, same-day "emergency" request.
$13000 for a $1200 water heater? Thats criminal.
Freaking robbery
$100k/year here in Indiana is definitely not check to check
After taxes you only have like $70k. A small 1 bed house rents for $36k to $40k per year. Car payment is another $12,000 per year. After all your other bills there isn't anything left over.
@@TheHandymanBusiness that’s true. But cost of living is so low. I agree with your point though.
My wife is from Indiana. We looked at moving back there. The cost a nice house near good schools isn't cheap
It is about 50% less expensive than where we are at now though. For a Million bucks you can get a pretty nice place in IN.
It’s all good in Terre Hood
Definitely worth it… or wait a couple days without hot water and get it for half. Plumbing companies are expensive. My bond payment alone was $2200 for the year, that doesn’t include any of the things you mentioned like insurance, cost to store tools, gas, etc.
Had a plumber come by and told me $5k to replace my water heater. I went to Home Depot and bought the same water heater they were going to install and an "installation kit" for less than $1k. Took me an hour to replace it. $5k is highway robbery.
The white-collar professionals don't have a problem charging, so get your money back when they call you!
You charge what the market will bear. It's that simple. Learn to read the customer to see what they value.
I run a small HVAC company, small truck (Transit Connect) that is 11 years old. Stocked (as an investment) with what I know I need that will get me in and out.
I did a repair. The prior guy wanted to sell for $6k. I won the work. Did 2 hrs, walked away with $800. My cost was $169. The customer valued a working AC unit and maximize his profits on selling the home.
I did a warranty insp., units had bad boards. warrantied. 3 hrs of work, no parts, $700.
Customer valued warrantied replacements. Prior guy bad mouthed and wanted to sell new ones.
It does not make a difference what they COULD have made, the other guy walked away with $0.00 for their effort.
The company I work for charges 1,400 for same day install, if we have the water heater stocked. Price can vary depending on what it takes to get the job done.
A few years ago, I had a water heater fail on a late Sunday afternoon. I called the company I contracted with for A/C maintenance, as they also had a plumbing service, and I had someone come out within half an hour. They guy quoted me a little over $5,000 to swap out my 70 gallon water heater for a 50 gallon water heater (all he could get on a Sunday evening). I must have had a "WTF" look on my face because he immediately started justifying his fee because it was an emergency call, it was on a Sunday, and he was a LICENSED PLUMBER.
I told him I couldn't justify the cost and that I'd do it myself. I headed to my local big box store and purchased everything I needed, including adding an expansion tank that I did not have originally, and spent less than $900 for everything. New 50 gallon (gas) water heater, new brass gas flex line, new brass water in & out lines, new drain pan, and an expansion tank with all of the necessary fittings loaded in my truck right before the stored closed for the evening. It took me a few hours to get it done, mainly due to having man-handle the old one out and the new one in to a small closet about 18" higher than the floor by myself.
$13,000 for the replacement was a complete rip-off and I'm glad the company was called out and shammed into correcting the situation.
Once a plumber charged me 6,500$ for a water heater replacement. It was at my business, i have now learned it should have been closer to 4.5k.
Inflation. my parents bought a new development house in NJ 1962 for $14,000. it now goes for $620.000
Yep. That's right.
Jeez that company still got out good with making 5k for a water heater replacement. That’s still an insane price for a 2 hour job. Technician is just a fancy word for crook.
Great advice. As a tax accountant, I see people leave money on the table daily. I mostly agree with your S-Corp comment, but it’s not that absolute…. Best to always have a trusted CPA to consider all factors.
5. F-ing. THOUSAND dollars???? That is still assinine.
$13000 for a tank water heater is pretty steep. Less than $1000 in materials and less than a day of a labor for one "technician" if they are at all competent. $5000 is probably on the high end even. The warehouse bs is just a marketing tool. You can get a water heater from any plumbing or big box store right off the shelf. $1000 in materials, no more than $1000 in labor. If they have over $10000 in overhead per tech per day then something is not right.
Years ago you could walk into Lowes and buy a Whirlpool water heater for about $330, not anymore
I don’t care where you live or what your overhead is 13k for a water heater replacement is gauging and taking advantage of someone……elderly seem to be the target of other things as well….
Depending on where you live and more importantly what you spend, 100k is still plenty. If uncle Bobby is making 100k a year as a plumber he’s probably working part time and taking a month or two to go on fishing trips.
$13,000 dollars for replacing a water heater is beyond ridiculous. Call around to at least five different companies, then call around to your trusted friends to see if anyone knows a plumber who does work on the side, you might get it installed for five hundred bucks.
What was the job scope though? Did they upgrade it to a high efficiency unit or was it a swap out. That all factors into the price.
Christ man, I replaced my MIL's hot water tank for $340. We got a great deal on the tank at Lowes. Then I helped a friend replace his dad's tank. That cost him about $700. Both of these tanks were electric, that made it easier. I have no experience in plumbing and was able to do it.
I replaced (personally) my 40 gal water heater in December 2003 and the heater cost $160 and replaced it again in December 2023 and the heater cost $640 plus misc fittings. Draining and installing using sweat fittings took less than 4 hours for a electric heater.
A plumber working a 30 hr week for 50 weeks is putting in 1500 hrs a year. If he's making $200,000 yr gross income (55% of sales) then he needs $363,637 in sales per yr ÷ 1500 hrs = $243 man-hour rate x 2 man crew = $486 per hour for a full day $3,888 labor. Assume water heater cost is $1,280 after 100% markup= $5,168 billing.
Even at this price I'd be taking cold showers for awhile and for $13,000 I'd need it to cool down from sticker shock from the cost of labor.
This big company sounds like they are a big supply house or plumbing company that subs work out to plumbing companies.
I previously worked for a regional hvac company and this $13k price is lower range for a new hvac system
If the customer accepts the estimate, it is fair. It's on them to get more than one estimate.
Applewood Plumbing and heating in Denver Colorado charged an older couple $13,000.00 for a water heater. They went to the news and social media and Applewood had to refund there money. They did end up paying $5,000.00 for the water heater.
Commission based service business. He forgot to sell them the protection plan! Could have tacked on some more $$$
I don't understand how this isn't illegal. I mean, it's definitely bordering on fraud.
Isn’t the whole point of having your own supply house and in house staff to cut out the middle man and reduce your costs overall to do work as a company?
And increase profits year after year.
Problem with that is you have capital sitting in a warehouse not making money.
I am a plumber on the east coast and thats outrageous. I work for a large company and they charge 2500$
same day service to replace a water heater is 3k maximum
I just had a 60 gallon tank installed 2 months ago in 🇨🇦, for $2700.
I can’t believe someone would think a 40 gallon tank install, would cost even close to $5000 let alone $13,000! These poor old people
Did mine myself for ~$1k, 50 gallons w/12 year warranty, plus new copper valves.
I sold multiple solar water heaters for 9,000 to 12,000 a few years ago
And sold hybrid water heaters/nat gas tankless water heaters for under 5k
So I’m sure that same company is charging 40% more these days
JFC. Even $5K is bonkers! While I understand elderly abuse is a real-thing, let’s be honest here. Anyone not suffering from dementia or mental illness should realize immediately that a five digit price tag for any basic service call is batshit crazy.
I own a rental property, my tenant called me one day and told me they had to pay $8,000 for a new hot water heater and told me they needed paid back for that
No, you never gave me a chance to fix it , I’ll reimburse you what it would have cost me to do it myself and that’s it
If anyone.....ever.....needs a water heater installed for $13,000. If ya'll just have to spend that much, because you want to, I'll install it for you myself minus the cost of the water heater. I dont carry insurance and I dont warranty it, but ill put that shit in. Really, I'll fly to you for that amount of money.
13k for a water heater? Sounds like something you would do.
$5k for a 40gal water heater? That's still crazy. At most, that thing was $1k, and even considering overhead and emergency call, $4k is gratuitous.
they ended up paying 5k for it?? thats wild. we pay 1100 for a water heater installed in my area. thats funny that her daughter called in to help her and still didnt check actual prices.
So when young people are ripped off at every turn it's their own damn fault but when elderly people who've had 7 decades to find out the cost of a water heater replacement fork over their credit card it's a crime? Lol
I'm at $800:$1200 for a water heater replacement. I'm sure every area is different. If they're older I'll cut them a break. My parents are old and I wouldn't want anyone taking advantage of them
Company way over priced the job. They know it cause they offered a refund after the news story. Be fair and make yourself a good profit. HandyOn!
Like you have said ymmv by area, in the Nashville or Memphis market the big companies are charging $3000 to replace a 50 gallon gas water heater.
Small companies are around $1500.
This is what you call a Sales-Tech. A salesman dressed up like a service tech.
“I don’t work for the elderly.” Sheesh. That comes off harsh!!
Its an honest answer. I don't have time to do discount work for single moms and old people.
@@TheHandymanBusiness That single moms line is even harsher- and I LOVE it!!!!
In So TX (cost of living not sky high) a 40 gallon elec w/h runs around $475, bigger snooty plumbing companies charge around $400-$600 for installation and price w/h around $800, good handymen do installs from $100-$200 for installation just as good as an unlicensed plumber (working under greedy owners license) going to your house and not trying not TO LEAVE ANY MONEY ON THE TABLE, famous salesman quote. As far as permits companies don't even pull them, not needed around here, I've never seen or heard of a catastrophic leak ever as far insurance purposes.
The customer is shopping for an installed water heater, not investing in the "big company" mistakes in oversupplying inventory, bloating your staff with salesmen worse that car salesmen, and overpaying so you can have a better retirement. The skills required for that installation could be done by a friend or neighbor who is not a scammer for his "services".
Did mine for 710$.
WH, romex, breaker and some copper pipe.
I rarely dip into handyman work, so it can be done if you're able
$13,000, I have to work 462 hours at my job (net pay) to cover that. I am a professional that makes decent money.
A decent 40g power vent water is $800 to 1k . Even after overhead and labor that math doesn't add up
Thanks for lowering the value of your trade. I just paid 5 dollars for a plain cheeseburger
My opinion is this is going on all day everyday. I don’t know anyone that wouldn’t charge a few thousand for a $400 heater install 😂. $5000 isn’t fair either.
$13k. For a water heater that averages $550? Come on! No wonder the news got involved.
I would do that for $2500.00 same day. $1900.00 within 3 days. $13k is a joke.
i see you your link for Jobber. Is it a software you actually use. If so, how do you like it. Im thinking of switching from Markate.
No way,I just paid $1800 for brand new electric tank instal, including"Rheem water tank here in Vancouver Canada!
electric even cheaper bro. They still made 600-800😂
Of course we all know $13k is too high. Remember to look out for your elders if you care for them to make sure they aren’t making these types of decisions on their own, if they aren’t all together there any longer. That being said, welcome to America, charge whatever you like. As stated in this video your body won’t hold up forever. Make good choices. Clearly the contractor question got caught doing something. They probably shouldn’t be doing, and have been on trial by the court of public opinion and I’m sure it has negatively affected their business. However that sentiment will soon fade, as the service they provide is valuable, and there are people that would gladly pay it, or it would never work.
Girlfriend got hers replaced in a confined mechanical room. Last year when I was in the hospital for $1200
The majority of water heaters can be had at Lowe's/ Homedepot in the same day. Including all the parts. Geezers
Whatvmarket are you in
I think it looks worse for them that they refunded them $8000. Than if they had stood there ground.
I wouldn't use that company for anything.
13k for a basic water heater replacement? I’m wondering if they accidentally added an extra 0 - but seriously, even if a 40 gallon water heater cost $1,000 which is on the high end, I don’t see how there’s $4,000 in labor just to remove and install a new one…. Maybe $500-$1,000 in labor if you live in Los Angeles or Manhattan or Chicago or a really big city..
I don’t like charging elderly. Every time I get asked to go look I’ll fix whatever it is at cost for whatever the part. Almost every single time they give me a huge tip. Or try’s to give me something.
Seen it! Thanks! Handyman Gonna make me Mo' Money
$5k for a tank water heater installed is too high. Home Depot can install same day for less than $2k. $3500 would be more reasonable for the ability replace same day and exceed customer expectations. I would have gave them nothing, the client had to go to the news.
I make 150k, and it’s garbage. Only upside is I work from home and it’s easy tech money, and I can do side gigs during the day if I want.
Even 5K is well above fair price for this (what is pictured)….should be a roughly $2500 (give or take a little) job for a legit company….maybe up to 3K for the higher priced company’s out there
I think 13k is about the limit
40 gallon natural gas $1700.
Anton's HVAC out St. Louis, Mo is one of these companies. Be careful dealing with them.
Inflation math is a real wake up call.
Show me the money. Great advice
No matter what you charge the important thing is to charge everyone the same!
How are your bills that much?
What do you have 2 100k trucks, A 5 million dollar home, And eat at the best places every night?
Taxes takes $35,000. Rent for a 1 bedroom condo is $35k to $40k a year.
@@TheHandymanBusiness Wow, Maybe I'm just used to buying a decent used truck cash so no bill, insurance is nothing, And living outside of a city, In the country a little more,
I mean but only 10 miles from a couple city's. So mortgage is only 16k per year, Taxes and insurance on it only 4k a yesr. But it's a 2000sq foot remodeled home.
It is pretty nuts how much more to live in a city.
Was it only the water heater or was there more to the job. A lot of information left out to really know what the estimate should have been. If it was only a water heater swap that’s just ridiculous.
Only the water heater. No information was left out. The picture is of the actual water heater installed.
I think $2300 is good, and that's with an expansion tank replacenment since I see one in the system.