Business ethics question

After tinkering unsuccesfully with a broken washing machine for a while, I decided to call a repair company. They said they could send someone out that day, for a $34.95 diagnostic fee, & if they fixed the machine, the diagnostic fee would be waived save for $9.95, ensuing labor at $58/hr plus parts.
When the guy got here, he told me that “if a repair was done during the course of diagnosing”, a flat fee of $68.00 would be charged, and would that be OK…Sure, go ahead, I told him. Two minutes later he pulled a sock out from between the tubs & handed me a bill for $68.00.

I sort of feel scammed, not because I resent paying the money for a few minutes work (I don’t mind that) I just feel that somewhere the line between “diagnose” and “repair” got blurred.

Was this ethical?

Bottom line: because the repair was “done during the course of diagnosing”, they are justified.

Arguably, they should’ve told you the results of the diagnosis, and then let you decide whether or not you wanted it repaired right then and there, or whether you wanted to wait. If you did choose to have the repair done, then the diagnostic fee would be waived because the repairperson had only had to come out once – they’re already there, so they just fix what they know is wrong and charge one, higher, coverall fee.

IMO, the guy should’ve told you what was wrong, and then let you fix it …

I don’t think the guy did anything dishonest, but I do think he showed poor business judgement. I wouldn’t use that companies servoce again, nor would I recommend them to anyone.

I would have at the most charged you the flat diagnostic fee of $39.95 to cover my overhead and time for coming to your house, but I would be tempted to waive even that. I probably wouldn’t make a good business owner.

Considering that you own your own business Carina, how would you have handled it if the situation was reversed?

My feeling is that it’s unethical and here’s why:

The repair people probably know that in a LOT of cases, the problem is a simple one that can be easily fixed by the customer if he knew what the problem is.

Not only that, but they didn’t give you much time for that thought to occur to you. They made the diagnosis + repair offer at the last minute.

So IMHO, they took advantage of their superior knowledge under circumstances where they knew you would be vulnerable.

It looks like exactly what they told you on the phone.

34.95 was waived save $9.95
1 hour labor $58.00
Parts $0.00
Total $67.95

I understand that he only spent a few minutes at the machine but I assume that they count drive time, labor time, and the time he spent writing up the bill and have a 1-hour min.

He could have charged you the $34.95 (not waived) to diagnose it and then gave you a price of $33.05 to repair it and you would have wound up at the same place.

I think it’s ethical, just handled (sold) badly. If they would have told you that many repairs can be made during the diagnosis and in the event they could diagnose and repair your machine within the first hour on the job it would be a total of $68.00. That would include all charges for drive time, diagnosis, repair and tax.

Would you feel better about it?

BTW I am not in the appliance repair business but it seems to me that they often charge prices fairly close to what new things cost. If they got you up and running for $68.00 you may not have done bad at all.

waxteeth…I think you’re right, that it was ethical but the communication was poor, like lucwarm said. Like I said, I don’t have a problem with paying that much because I realise I’m not just paying for his time actually working on the machine. It just seems that a stuck sock…well, I don’t know…I suppose it’s technically a repair. And I realise the arithmetic adds up.

I think I was irritated because I had the whole back taken apart, hoses off, & everything, because I suspected it was an obstruction…But the clips that allow one to get between the tubs are invisible; you have to know they’re there.

Purd…I would perhaps have handled it differently, but I’m a small contractor who relies only on repeat & referral business…I don’t advertise at all. So I regard spending time giving estimates & little call backs & stuff as good PR & cost of doing business. This was a big company, so they don’t have to care as much about a little repair like mine.

I didn’t mind paying & expected to, I just thought the communication was a bit shoddy.

At least I know where some of those stray socks go!