Why a Diagnostic Fee

Derek Cole explains why HVAC, electrical, and plumbing companies charge diagnostic fees. A fully stocked, insured technician costs money to send out, and most companies can't absorb fuel, insurance, and labor. His company offers a service club where members skip the diagnostic fee and get discounted repairs.
Chapters
Why do I have to pay a diagnostic fee? So diagnostic fee is something that is charged in the industry, is very standard, and it gets a qualified technician to your house in a fully stocked vehicle with all the training, all the insurance around him, on the vehicle, all the parts on the vehicle. All that has a cost to it. So to show up at your house for a, you know, it's this price. So that cost has to be offset somehow. I mean, they're in vans that get like 8 miles to the gallon. So depending on where you live, it gets very costly as to where they are and where they're going. So I've gotten the question quite a few times, why do you charge it? Because I want to pay it. And this was actually from a doctor. I said, well, the difference between us and you is that I'm coming to your office, I'm coming to you, you charge me $125 $200 for a consultation, right? I'm coming to you, but we're actually putting a technician in a truck with $6,000 worth of inventory and insurance and all that training and bringing them to your house for that small, small fee. So it's something you have to charge to be in business. I mean, I think it's— if you want to call it service fee or diagnostic fee What do you charge it? Most companies in this industry, HVAC, electrical, plumbing, charge some type of diagnostic fee because you have that cost that you obviously, you can't just eat it all the time. Now, if you're opposed to paying that fee, our club members never pay that fee because we guarantee when we come to your house twice a year and do the service on your system, We do such a good job, your system will not break down. If it does break down, we come to your house at no additional charge and find the problem and fix the problem at a discount. So that's a 2-for-1 there. So I kind of like the analogy with the doctor because he was giving me a hard time about why we're charging this. I'm like, look, I'm coming to you and you charge me this. At least we're going to your house.
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