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The Best Approach To The Repair Or Replace Dilemma Of Mechanical Contractors

Posted by Randal DeHart on Tue, Jul 16, 2019

In the mechanical trades of the construction industry, plumbing, electrical, HVAC and related fields of irrigation, low voltage and audio / visual equipment companies there are lively discussions happening regarding "Repair Versus Replace."
 
Most of the time, the participants are more fixed in their positions and intense with passion than any political or religious discussion I have ever seen.
 
The primary question involves a deep-seated paradigm regarding the definition of honor and integrity. Is it more honorable and better for the client to treat every mechanical part as something that must have every last bit of use squeezed out of it before replacing it? Or is it better to replace it at the first sign of breakage? Or lastly is there a middle ground?

Plumber fixing under the sink in the kitchen-1

Group #1
 
Construction companies are honorable, decent men and women who serve a market that appreciates their willingness to work hard and find ways to save them money whenever possible by repairing, overhauling and rebuilding a mechanical part that has outlived its useful life.
 
These are decent, hard-working, and respectable people who never quite make anything more than a sub-standard living. They possess a high degree of self-worth and see themselves as the "Advocate For The Customer" defending their customers from the unscrupulous marauders who would rip them off by replacing a part before it was declared utterly dead. They work long hard hours for low pay until they finally grind themselves into the ground and are forgotten.
 
Group #2
 
Construction companies are honorable, decent men and women who understand construction psychology of "Give the clients what they want and willing to pay for...not what the contractor thinks is best." This means they give their customers and clients all the facts and let them decide what is best. If the customer wants the problem solved once and for all they do it. If it can reasonably be repaired or rebuilt, they do it. If the customer decides to have the unfixable fixed, they refer them to a contractor from group #1.
 
CLIENTS WANT 
 
In several studies, we have done where we ask people who recently had work done in their home by a contractor, any contractor, the most common issue was "I [could or could not] get what I wanted." There is a compelling message in that sentence. The most common cause of satisfaction or dissatisfaction for the customer was getting what they wanted and not what the contractor thought was best.
 
This is the group we serve within our contractors' accounting services system because they are the ones who bring value to other people's lives and as a result, become very wealthy. It is almost as if they cannot help becoming wealthy, and as a result, they live well, have resources to provide for their loved ones, and have enough left over to support charitable causes.
 
Group #3
 
Construction companies are on the other end of the spectrum, those who may tend to oversell and replace everything. In the end, they find themselves in the same financial condition as group #1.
 
Conclusions And Group Consensus
 
It is interesting to note the findings of each of the groups at the end of every discussion on this subject:
 
Group #1 will suggest strongly that group #2 and group #3 are overcharging and should be put out of business.
 
Group #2 will typically ignore group #3 and do their best to try and help group #2 Level Up and in the end, give up and move on to acquiring more happy clients and increasing their personal wealth.
 
Group #3 will ignore group #1 and may say group #2 is leaving money on the table.
 
We welcome any and all replies and promise no matter what you have to say it will be met with courtesy and respect in return. I have no interest in changing your mind, only in what you have to say. Ultimately, advocate for your clients wants and needs, putting them first above all.

About The Author:

QuickBooks-Trainer-Randal-DeHart-PMP-QPA-Fast-Easy-AccountingRandal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and Construction Accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.

Our Co-Founder Randal DeHart - Is a Certified PMP (Project Management Professional) with several years of construction project management experience. His expertise is construction accounting systems engineering and process development. His exhaustive study of several leading experts including the work of Dr. W. Edward Deming, Michael Gerber, Walter A. Shewhart, James Lewis and dozens of others was the foundation upon which our Construction Bookkeeping System is based and continues to evolve and improve. Check out our Contractor Success Map Podcast on iTunes. 

 

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