humpin iron said:
I don't understand why everyone on these blogs are so against stove shops. I've been in biz for 30 years. Is my knowledge worth anything? My liability insurance is $1800 a month. The gas bill for my trucks is $2600 a month. My service techs make 20-25 per hr, plus a company trk, plus two weeks vacation, plus bennies. When you call my shop one of 20 employees will answer the phone. Is none of this a value to you people?
You guys go to work to make money, why can't we?
I don't think it's "against stove shops" as much as it is perceived value for the cost. People do the math in their head and say, 750 buys me most of my year's worth of pellets...it's 250/hr if it takes 3 hrs to do the job...it's a third the cost of the stove...oh, and add $400 for the pipe, etc. etc. etc.
To put it in perspective, how would you feel if you bought a new refrigerator and it was $750 to install it and hook up the ice maker (run a line into the basement, tap the water supply pipe, etc.)? And by the way, that'll be an extra $200 for the power cord and $400 for the ice maker connection tubing. I don't know anyone who charges that kind of rate so that's the kind of comparison going thru people's minds.
Taking your $ example above, if we assume it's just for the delivery/install crew, and you make $0 on the stove sale to support that (all profit for the stove going to support the store & operational overhead there), then your liability insurance is $37.50 for the install, $108 for gas, and 75-150 for the techs (depending on 1 or 2 for the job). This assumes you have them running 6 days a week and 2 installs a day. That's $350 on the high end with benefits included for the job. If your truck fuel cost was for all of your trucks and not 2600/truck/month and your liability insurance was for the organization and not for the one crew I illustrated here, then that cost is probably well under $200. So, it means you're making a 3 or 400%+ margin on that business. That's what gets people scratching their heads & talking about doing it themselves.
Add to that the stories people have about the competency of their dealers/installers and it just makes the whole $750 flat charge smack of the same kind of profiteering people complain about Exxon/Mobil.
(My stove shop swore I couldn't get a pellet stove insert installed in a prefab fireplace - told me it was against the law, couldn't be done, would cause a fire hazard, would void the warranty, etc. I asked why Harman, Breckwell, and others all spiked out directions for how to do that very thing in their manuals and my building inspector said it was okay...he kept arguing and when I told him it was okay, I'd just consider other options, he went off and actually looked it up...and agreed that perhaps it was legal, recommended, and could possibly be done...just not by his shop. Should I trust any other words of wisdom to come out of his mouth?)
It may not be the way you operate, but you will find customer perceptions won't have benefit of your inside information on how much it costs to run your business and simply reflects their belief of the cost/benefit. If you're lucky, they'll believe the benefit is worth the cost and continue to do business with you, recommend you to friends...if not, they may either go down the street or pay grudgingly and talk about how they were shafted to all their friends. It's a lot like car dealers & all the add-ons they throw onto the price of a car...sometimes they're justified, sometimes not.
Jim