Is an overinflated estimate reason to go to the BBB?

In My Humble Opinion
1

A few weeks ago, I posted with a question about Trane Heat Pumps – wondering whether or not I was in for a typical high-pressure sales pitch. I got a couple of answers and was reassured that Trane was a reputable company selling reliable equipment, but that the equipment was sold by contractors whose sales pitches may be assumed to be varied. The guy came over, did a lot of measuring and gave us a little spiel on Heat Pumps and the advisability of buying Trane over the competition. Nothing unexpected until he got to the price – we have a 2-story, 3000 square foot house and wanted 12 - 13 SEER. He quoted $14,500 for two 2.5 ton heat pumps with variable-speed air handlers. Gaak! Towards the end of his presentation, we told him that we would be getting several estimates, both from other Trane dealers and from dealers in other brands. At that time he realized that he had forgotten his mini-printer and couldn’t print us out the itemized estimate we’d asked for. He took my email address and told me that he’d be sending his bid via email the next day. He also pointed out (several times) that other companies wouldn’t be taking the precise measurements that he took and he implied that these measurements were really the only way to get the correct size system.

So, we continued with the estimate process and soon discovered (to our relief!) that other systems were much less pricey – we got estimates for similarly sized Carrier units for between $7,500 - $9,000 and an estimate for a similarly sized Ruud for $6,700. I still hadn’t recieved the detailed estimate from the first Trane guy although my husband had called him several times checking on it and had been assured that it was “in the mail” and “on its way.” Our last two estimates were for a Trane unit and an American Standard (which is the same as Trane, built in the same factories, but under a different name). Same size and specifics as the first Trane estimate, as we remembered it – we still hadn’t received the actual itemized bid – and priced at $7,600 and $7,800! My husband, after all his research was done, decided he really likes the Trane/American Standard system. And, we preferred the American Standard guy for personal reasons – he has a small company that’s been in business for 20 years and does (along with his partner who has a similar number of years of exerience) his own work. His references checked out and he just seemed like a stand-up guy. So, we finalized a contract for the recommended American Standard system at $7,700.

However, despite the good outcome, my husband harbors lingering resentment against the first Trane guy. We still haven’t seen an estimate, so it’s possible that that price reflected some things we aren’t getting from our guy… But, without the estimate, we can’t know that for sure. And, if the price does reflect some extras, they are extras that not a single one of the other 7 estimates we got recommended, AND that we didn’t ask for. And the measuring thing seems more and more like smoke and mirrors – in his latest conversation with my husband, the first Trane guy confessed that he’d been slow about sending his estimate becasue he didn’t want us to have it available to other guys who could “use his hard work and measurements” to decide what unit to recommend. Oddly enough, although none of the other guys did any such in-depth measurements, they all came up with the same size/SEER recommendations. $6,800 seems a huge markup for what is, we assume, largely the same system.

My husband assumes that the first Trane company either routinely pads their bids, or simply drastically marks up their equipment and services outright. We suppose that they count on a certain number of consumers NOT getting estimates and simply going with the first bid they receive – I can’t magine anyone who actually got estimates buying a system from them, that’s for sure. Anyway, my husband is considering a BBB complaint – keep in mind, though, that we don’t have a written estimate. Anyway, is it illegal or unethical to sell your stuff at an inflated price, if you can find people to pay it? The other thing my husband is considering is a letter to Trane headquarters and/or our local paper’s editor page. Does anyone have any opinions or suggestions about which of these three options would be best to take? Or should we just let it go?

2

BBB isn’t just a ‘complaint center’, rather you should view them as a place where experiences are recorded.

From what I know of my dealings with the BBB, they accept feedback, offer assistance with disputes, and keep notes on whatever feedback they receive, at some is positive, negative or indifferent.

In other words, sharing you experience, especially if you are left wondering what it all means, can’t hurt.

3

Perhaps it had changed since I last checked, but I believe that the BBB is designed to help you deal with disputes where you were a customer (money changed hands) but the outcome wasn’t to your expectations. So you can’t, say, report a taxicab for not picking you up, or for an estimate you think was padded, because you didn’t, in the end, do business with the company in question.

The BBB ultimately rates businesses on how they resolve disputes. That is, it’s not just how many people have bitched, but how well and how quickly the company has addressed each gripe.

4

The thing is, the BBB has no power at all. They’ll let you cry on their shoulder, and you may feel better, but that’s the end of the value.

If you complain, and someone else asks the BBB about this company, they will tell them about your complaint, but that’s it.

In fact, the BBB is a big shell game anyway. They get their money from companies that pay to be members. They hold no power to make the company change bad decisions, and they have no influence in the government or regulatory agencies.

My advice: don’t waste your time with the BBB.

But, more to the point: I’m not sure where you’ve been wronged, or why you’re seeking vengeance. Why not just move on?

5

With all due I respect, I suggest that at this point there is no longer a problem with this contractor, but rather a problem with your husband’s attitude. Living well (which in this case is getting a good price and not lining the jerk’s pockets) is the best revenge. Let it go.

There’s no law against being expensive. There are probably laws against gouging, but I think you’ll find they deal with certain specific situations that don’t apply here. I seriously doubt that any positive result will come from contacting the BBB, Trane Inc., or the newspaper. You probably can’t change the contractor’s method of doing business, but you can change your emotional response to it.

Every day, folks choose to go to the exclusive restaurant, buy the luxury car, etc. It’s arguable if they get more for their money other than a certain feeling of “betterness.” Some people may like dealing with that first Trane guy and not have concerns about how his prices compare to his competitors.

Wise consumers do just what you did. They research and compare. It worked for you. You won. Basking in the glow of that victory will be much more satisfying than devoting time, energy, and emotional stress to pursuing vengeance over–uh, just what did that guy do to you?

6

Absolutely not. This is why you get estimates in the first place. If you were given an estimate of $7K and then charged $14K, you might have something to gripe about, but you weren’t.

You did exactly what where supposed to do. You got an estimate. It was high. Way high. The guy did things you weren’t comfortable with. You got more estimates. They were lower. You went with one of those. I see no problem here.

7

Report him to the BBB because he won’t cough up a free estimate? I thought I had head everything but this does take the cake! What GaryT and Bernse said. It’s a free estimate for crying out loud! Stop pressing the issue and move on to a more responsive vendor.

Why is your hubby being so peevish? Based on your stated selection procedure it’s glaringly obvious to Mr. Expensive that you’re going to shop him and that he has a snowball’s chance in hell of selling you equipment, so why should he go the added trouble of making a quote?

It sounds like your hubby just wants his measurement numbers just as Mr. Expensive suspects. Leave him alone and take one the lower priced deals you’ve been quoted.

8

I can’t speak for the first contractor, but being this is my line of work, I will throw my two cents in.

I occasionally bid jobs at an inflated price for several reasons,

a. this is a busy time of year and i most certainly make more money on service calls than installations.

b. I have more work than I can do in a reasonable time, without having to put in mega overtime

c. I really don’t like the consumers attitude and if I am going to work for him, it will be worth the aggravation.
Trane does make some really high priced equipment in their top of the line Variable Speed, Two Stage, Yada Yada Yada. Maybe he was quoting top of the line.

Whomever you decide to go with, make sure a load calculation is done, ie. manual j, before any work is performed. THis is a must and in most cities a must before a final inspection will be granted.
MOst of all, realize this- There isn’t a nickels worth of difference in most HVAC equip, it’s all in the installation. Ask for references from all contractors and follow them up!
Good luck!
Tranetech

9

Thanks, everyone, especially Tranetech. Your advice about shopping for installation first was very much in line with the research that we did. That’s why we chose the company that we did – because we trust them to do the installation well.

As for the rest of it – I suppose you’re all right – Kevin does get a bit… well, peevish is as good a word as any, about customer service. He’s worked in customer service for over 20 years now, perhaps this is why. His standards are very high, sometimes unreasonably so. Anyway, I’m made of sterner stuff myself. The main thing I’m feeling right now is curiousity about the differences in estimates for what I really do assume is more or less the same equipment. I realize that the price goes up drastically with the SEER rating, but we had specifically asked for a SEER of 12-13, which our research had shown would be boosted further by the variable speed handlers. And, I specifically asked him not to include extras such as the humidifier and programmable thermostat… I don’t know, I really thought a variance of nearly double was unusual and questionable, but maybe not. I’m surprised that nobody else was shocked by the disperity – I mean, $6800! But, we are new homeowners (having last owned a home in 1990) and are somewhat naive, perhaps.

Anyway, we have moved on. And I won’t pursue the question further – at least by writing anyone about it. I do think I may call the guy and ask him flat out why his prices were so much higher than the others – just for curiousity’s sake. Other than that I suppose we’ll confine ourselves to just telling the story whenever we have friends or family shopping for heating or airconditioning equipment. If nothing else, it’s a cautionary tale aout getting your estimates before contracting a large job.