On November 15 the Tucson branch of Alaskan performed routine maintenance on my heat pump, or so I thought. The tech said the VAD was not within specs and he strongly recommended that it be replaced. I tried repeatedly to have him explain what a VAD is but he just kept repeating technical terms about a vacuum something or other which I repeatedly said I did not understand. He stressed bad things could happen to my compressor and that would be thousands of dollars to repair if the VAD failed. He said I needed to sign an agreement on his computer tablet before he could proceed and the cost would be $589.00. I again asked that he please tell me exactly what a VAD is and he again gave me technical jargon about current and arcing. After acting sincere that the work needed to be done I agreed to the repair. I watched as he installed a capacitor in less than 20 minutes and then he began closing up the unit. I asked when he was going to replace the VAD and he said that is what he did. I noted that the box containing the capacitor was clearly marked “capacitor”.The capacitor he installed costs $12.87 at Home Depot. So for a part that retails for less than $13 he charged nearly $600.00...This was in addition to the maintenance service charge. His intent clearly was to deceive me into believing the repair was a complicated and expensive undertaking rather than being honest. I called the Tucson office and was told no manager was available to speak with me. I called the Tempe office where it appears the corporate officers are located and was told I had to get back in touch with someone in Tucson. After making three calls to the Tucson office I finally received a call back from Gary the manager. He said the VAD is a voltage absorption device, I asked is that the same as a capacitor? He acknowledged it is the same thing. I asked why the tech refused to tell me that. Gary defended the tech's deceptive answers saying it is a VAD. He also acknowledged that he would have handled my request for a clear layman's description of a VAD in the same manner as the tech had. For what reason other than greed and deception would both the tech and manager object to telling a customer who requested multiple times a clear, and honest answer a response in layman's terms to his question? The reason appears to be that an honest answer would have cost the company a $589.00 pay day. It has a also cost them a customer.
I filed a complaint with the BBB and on November 23 I received an email from BBB that the respondent (Alaskan) states they have no record of me as a customer. The emailed invoice I received from the Alaskan branch in Tucson shows the same Arizona contractor's license number as the location listed in Tempe for the corporate office. BBB states I must submit a copy of an invoice as proof of my claim as Alaskan claims to have no record of me as a customer.. Alaskan's response per the email I received from BBB was “Can’t find them in our system and this zip is not in Phoenix “. Oddly, on November 15 Alaskan had emailed to me their invoice number 507852, the same day they cashed my check for $728.90.
RESPONSE FROM Alaskan Air Conditioning & Heating:
Thank you for your review. We appreciate your feedback. I understand that sometimes people don’t understand the cost difference between the part and what it takes to have a mobile air conditioning mechanic with a loaded rolling warehouse arrive at your house diagnose the problem and have everything they need to get the job done and get you back up and running with in 24hrs of the initial call. You may also not understand all of the other expenses like people answering the phones, having an accounting department, or all the legalities like insurance. Hopefully this explanation helps you understand better so that when you call another company and they charge as much or more you will remember this.
-We have compared the pricing to all the major companies in town and we are competitive if not better on service rates. I wish you had gotten some pricing from the other major companies in town prior to writing this because you would have come to that same conclusion.
If you own a vehicle and are able to diagnose the mechanical problem and install the parts yourself, your price will be a fraction of what and mechanic would charge to do the same work. It is no different in the HVAC trade. Most people are not able to diagnose and repair their own vehicles or their HVAC systems and are happy to pay a professional to do the work rather than buy the parts off of Amazon or eBay as you have suggested and do it themselves.
The following is an explanation on the breakdown of how we must price things out to stay in business. I hope that this finds you well and after reading through this will have a better understanding of HVAC companies and how they price out their services.
Service cost breakdown: all percentages are approximate and may change based on the part being replaced.
-The part cost 1%
-Direct labor(highly trained, background checked, drug tested, NATE certified technicians with years of experience) 17 to 20%
-Gas 1-2%
-Fully stocked vehicle(rolling warehouse) purchase, repairs and maintenance 4-5%
-Workmen's Comp./health insurance 30 1/2% of payroll
-Licensed, bonded, insured(2 million coverage) to protect you, your family, and your home 2-3%
-FICA Taxes 7 1/2% of Payroll
-Marketing 6-8%
-Accounting department 5-7.5%
-Answering and dispatching calls 7-10.5%
-Company property expenses 5%
-Department management 4-5%
-Ongoing technician training 3-5%
-Sales tax approx. 6%
-Average costs of all banking, financing and credit card fees averaged over all customers cash and financed. 5%
-Company provided tools and equipment so that we can provide the highest level of advanced diagnostic equipment available to find things that many of our competitors miss 4-5%
-Uniforms 1.5-2%
-Computer and phones 2-3%
-Service/dispatching software 3-5%
-Funds to keep the staff onboard in the slow season when there is not enough business so that we have the staff we need in the summer so that you get your system fixed when it's 115 degrees outside and don't have to wait 10-15%
-If everything goes perfectly that hopeful net profit at the end of the year 8-15% although it's extremely challenging to achieve. Of which more than 50% will be reinvested for growth. Each year we have more and more customers that we need to serve.
-If we are to continue to serve our customers with a guarantee of being cool within 24 hrs. of the call 24/7/365 none of the above expenses can be sacrificed.
more