Franchised Home Improvement Companies, i.e. Handyman ‘THIS’, Handyman ‘THAT’ Part II
by Mantych Electric, Inc. on 30th May 2010 View all blogs by Mantych Electric, Inc.
PART II (Taking up where Part I left off)
“Oh Yeah!“ If you have one of our coupons we can further save you some money! ! !” Most of the Handyman Companies offer coupons in their advertising. The handyman will now, supposedly after the fact, ask if you have any ‘promotional coupons’. Surprisingly, if you do not have a coupon, he supplies you with one, enters the appropriate ‘deduction’ in the space provided on the estimate form and further reduces your costs. Boy! What a deal you are getting. This company is the greatest. More smoke and mirrors, but in truth, when the handyman is given the price over the phone the coupon discount is already figured in. Now Phase II is really complete and you are convinced more than ever this is the company which you should to do business.
Next, the handyman provides you with a list of materials that will be required for your project. He tells you he will be glad to go and procure the materials as to insure the proper materials are purchased and to expedite delivery. Remember, in most instances, materials are not part of the Handyman Company’s quote. The ploy here is to get the project started as quickly as possible. Although you have signed a contract, many states have laws to protect the public when a contract is signed at a residence. In most cases one has up to three days to cancel. Also by starting the project as quickly as possible, it is less likely their quote will be shopped or through conversation the customer discovers they may get the work completed for a lower price by a reputable locally owned company.
Now that you have assigned the project to Handyman This, Handyman That, let’s review what you are receiving for your hard earned money.
First, let’s look at what specifications and conditions you are agreeing to:
I. Services Provided By Contractor
A. The Craftsman performing the services under this contract
1. Is not authorized to perform any service beyond what is identified on the face hereof.
2. This includes additional future services without the written consent of Handyman This, Handyman That.
3. Any agreements beyond the face hereof to circumvent Handyman This, Handyman That will subject the parties to legal prosecution.
This guarantees Handyman This, Handyman That is kept in the loop. Nothing wrong with this, after all, they have spent a ton of money on advertising to get you to call them. However, if you are getting the best deal with Handyman This, Handyman That’s screened, professional, trustworthy and reputable contractors with at least ten years of experience performing the work, why is this a concern?
B. In the event customer requests a different contractor or the specific contractor becomes unavailable for any reason, customer agrees that Handyman This, Handyman That reserves the right to:
1. Cancel this contract
2. Have a new contractor re-estimate the project
3. Present a new contract to the customer
Why would the quote change if a different contractor actually does the work? After all, Handyman This, Handyman That prices by the job and not the hour. If the scope of work remains the same, and the craftsman called the office for a price, why does the project have to be re-estimated and a new contract written? (See Part I for answer to this!)
C. Customer will obtain all necessary building permits
Reputable contractors deal with permits everyday and know the ends and outs of having a permit issued. They can answer the questions which might arise during the permitting process. Depending upon the scope of work this can be a daunting process and better left in the hands of a capable professional. Again depending on the scope of work, a home owner may spend 30 minutes to a couple of days obtaining permits where as a seasoned professional will spend 30 minutes to a couple of hours completing the same task. Makes me wonder why Handyman This, Handyman That wants to place this responsibility on the customer?
D. Proposal is for completing the job as described above. It is based on our evaluation and does not include additional labor and materials which may be required should unforeseen problems arise after the work has started.
This statement is probably true no matter who estimates the project. Sometimes there are hidden ‘land mines’ (surprises) no one can foresee. This is just the nature of the beast when dealing with existing structures.
II. Terms and Conditions
A. Acceptance is conditioned by:
1. Customer’s acceptance of all Terms and Conditions contained in this contract
2. Terms and Conditions shall not be modified other than in writing.3. Signed by an officer of Handyman This, Handyman That and the customer
By having an officer signing any changes to the Terms and Conditions again insures Handyman This, Handyman That is kept in the loop. Again, there is nothing wrong with this and is probably good business. But again, if you are getting the best deal with Handyman This, Handyman That’s screened, professional, trustworthy and reputable contractors with at least ten years of experience performing the work, why is this a concern.
B. Delay in performance – Handyman This and Handyman That shall not be responsible for any delays or failures in completion of the services due to:
1. Any cause or condition out of the control of Handyman This, Handyman That
2. Fire
3. Floods
4. Inability to secure materials
5. actions of the elements
6. nor shall the Contract be cancelled because or as a result of any delays in meeting such dates or schedules. Contracts cancelled after the three day rescission period warrants no return of down payment.
Basically, once the customer has signed the Contract and the rescission period has lapsed and no matter what happens there is very little liability to Handyman This, Handyman That. Oh! What about item six above, thought no down payment was required - Huh?
C. Unforeseen Conditions – again this is pretty much standard procedure no matter who performs the service.
D. Limitation of Liability – this is pretty much a catch-all proclamation saying the most the Handyman This, Handyman That is liable for is to refund the monies paid toward the purchase price. Any materials are the sole responsibility of the owner even if the craftsman damages them.
E. Intergration – There are no understandings between the parties hereto as to the subject matter of this contract other than set forth herein.
What this means is no matter what the customer is told or promised by an officer, secretary, craftsman or whoever the only thing Handyman This, Handyman That is responsible for is what is written in the description of proposal/agreement which is signed by both parties and only covers LABOR.
F. Warranty/Guarantee – Handyman This, Handyman That makes no warranty or guarantee whatsoever with respect to the services provided, except as states in writing in this contract.
1. Handyman This, Handyman That, at it’s sole option, will repair or replace any work which fails due to Handyman This, Handyman That’s defective workmanship with-in one year from the date of receipt of such services.
2. If Handyman This, Handyman That determines that the repair or replacement is not commercially practicable, Handyman This, Handyman That shall issue a credit in favor of the customer in an amount not to exceed the purchase price of the services.
3. Handyman This, Handyman That’s guarantee does not cover the effects of normal wear, tear, deterioration, abuse or misuse.
4. Handyman This, Handyman That’s guarantee does not cover materials.
These terms and condition used where taken directly from a Proposal/Work Order of a nationally advertised Handyman Service.
Seems there is a lot of language to keep the craftsman and customer honest as well as a lot of language relieving Handyman This, Handyman That from almost all responsibility.
The customer has just signed with a company that has truly masked itself in deceit, appearing to guarantee exceptional work with a lot of hype and bells and whistles that mean very little when it comes down to having to back up what at first appears to be a caring, faithful company that acts in the best interest of the customer. The customer has agreed to a price which is at least a third higher and padded to cover hidden costs than he would have gotten from a local non-franchised contractor. Also since the agreement is for labor only the material list furnished by the craftsman is most likely structured to be lavish to cut down on actual labor.
Check back for Part 3 of Franchised Home Improvement Companies, i.e. Handyman ‘THIS’, Handyman ‘THAT’. Going to be looking at the legality of the services offered by some Handyman THIS, Handyman THAT Companies.
Sunday, May 30, 2010
Tuesday, May 18, 2010
Handy Man this, Handy Man that
by Mantych Electric Inc.
You have a home repair project you need done. You feel it is too small to get a building contractor involved so you go online or look in the yellow pages under Home Improvements. You see a familiar name recognizable from a television ad or mail out you received. They must be a good, reputable and successful company; after all they advertise on TV and/or use direct mail advertising. Their handymen go through a rigorous screening process; are professionals at their trade with at least ten years of experience; fully insured and bonded and their work is fully guaranteed. They do not charge by the hour, they bill by the job so there will be no surprises. Sounds like a great deal, so you call and set an appointment.
About five minutes before the appointed time, a truck pulls up to your house and the person inside seems as if he is reading and straightening papers. One minute before the appointed time he gets out and heads towards your house. Exactly at the appointed time, your door bell rings or there is a knock at the door. You answer the door to invite the ‘handyman’ in. He asks you to wait just a second while he slips his booties on so he would not soil the floors. You then show him what you need done; he makes a few notes, thinks for a minute, fills out a proposal/work order, then asks if he can use your phone to call the office for pricing. He calls the office, asks to speak to a certain person, and gives a description of the work to be done. Then he answers a series of yes or no questions, writes down a price (usually a high, not to exceed, and low, no less than, price). Wraps with a little small talk then hangs up. He then explains the pricing to you, tells you he prepared to start work immediately, you just need to sign on the dotted line. Everything went like clockwork and so efficient. You are impressed so you sign authorizing the work. Mission accomplished – for the ‘Handyman’! Nothing wrong has been done; in fact, you have just been entertained by a well orchestrated and choreographed sales strategy.
Let’s revisit from the beginning.
The ‘Handyman THIS’ or ‘Handyman THAT’ company you contacted is a franchisee of a parent company. A franchise is defined as: the right or license granted to an individual or group to market a company's goods or services in a particular territory also a business granted such a right or license.” They were familiar to you because of massive advertising through all types of media by this parent company. The content of the advertisement is generic enabling it to be used throughout the country. All terms and/or services may not be available in all areas. (Read the small print.) They increase your confidence in their abilities by advertising their handymen go through a rigorous screening process; are professionals and have at least ten years of experience in their trade; fully insured and bonded and their work is fully guaranteed. This is capped off by advertising they do not charge by the hour, they bill by the job so there will be no surprises. Phase I of the sales presentation is successful – They got you to call! But let’s look a little deeper at these professionals. Many franchise companies when advertising for franchisees state - Previous construction experience isn’t required to own an in-demand home repair business. So who performs the actual work? Professionals that have at least ten years of experience in their trade and their work is fully guaranteed. Just because a person has ten plus years of experience in his trade does not mean he is a professional or proficient. The rigorous screening process usually consist the franchisee receiving $50.00 from a prospected subcontractor to pay for the cost of a criminal background check. If their criminal check returns no problems, then they can be covered under the franchisee’s insurance and bond ability. Very little if any probing is done into the person’s actual work experience although the customer is lead to believe differently. Then who supervises the work of these subcontractors if the franchisee does not possess previous construction experience. Good question, huh! Then, who guarantees and verifies the subcontractor’s work is performed correctly if the franchisee has no construction experience? It is another good question for which I have no answer. But you have already signed on the dotted line based on a smoke and mirror presentation.
Five minutes before the appointed time the handyman pulls up in front of your residence. He gets his paper work together as if preparing for your appointment with him. What you don’t know is this handyman has been sitting down the street out of sight or around the corner for fifteen or twenty minutes to insure he will be on time for the appointment. (This will come up again in a moment.) Slipping on the booties is really a good idea but its real purpose is to give the impression your property is going to receive kit glove treatment. A description of work is determined and then comes the phone call. The handyman will ask to use your phone, ever wonder why he did not use the cell phone incased on his belt? The ploy here is to get you to listen in on his phone call. Now comes the ‘magical’ part of the sales strategy. He calls the office, gives a description of work to be done. When he is through he starts answering questions either yes or no. In reality, when he surveyed the work to be done, he formulated how long it would take him to do the work including the time sitting down the road waiting for the appointed time, the time it took to complete the ‘free’ estimate, time it will require to pick up materials (if necessary), time it will take to clean up. Let’s say he figured it would take 2 days or 16 hours to complete the task, when he finishes the description of work to the office he is asked, will it take 1 day. He answers, no. He is then asked, more? His answer, yes. Two days? He answers, yes. Will it take two men? No. More? No. (You better believe the handyman more than covers the amount of time it will take him to complete the project) Now the office keys in 16 man hours, the description of work has nothing to do with pricing, into the computer and comes up with the cost of labor. Sixteen man hours usually translates to about $1120.00 which is split between the franchisee and the subcontractor. It appears to the customer the cost is based on the description given to the office over the phone when in reality it is based on the hours needed to complete the task. Average hourly cost $70.00. Usually the materials are paid for by the homeowner and not included in the money paid to the franchisee. Phase II is now complete – you have signed on the dotted line.
Check back for Part 2 of Franchised Home Improvement Companies, i.e. Handyman ‘THIS’
You have a home repair project you need done. You feel it is too small to get a building contractor involved so you go online or look in the yellow pages under Home Improvements. You see a familiar name recognizable from a television ad or mail out you received. They must be a good, reputable and successful company; after all they advertise on TV and/or use direct mail advertising. Their handymen go through a rigorous screening process; are professionals at their trade with at least ten years of experience; fully insured and bonded and their work is fully guaranteed. They do not charge by the hour, they bill by the job so there will be no surprises. Sounds like a great deal, so you call and set an appointment.
About five minutes before the appointed time, a truck pulls up to your house and the person inside seems as if he is reading and straightening papers. One minute before the appointed time he gets out and heads towards your house. Exactly at the appointed time, your door bell rings or there is a knock at the door. You answer the door to invite the ‘handyman’ in. He asks you to wait just a second while he slips his booties on so he would not soil the floors. You then show him what you need done; he makes a few notes, thinks for a minute, fills out a proposal/work order, then asks if he can use your phone to call the office for pricing. He calls the office, asks to speak to a certain person, and gives a description of the work to be done. Then he answers a series of yes or no questions, writes down a price (usually a high, not to exceed, and low, no less than, price). Wraps with a little small talk then hangs up. He then explains the pricing to you, tells you he prepared to start work immediately, you just need to sign on the dotted line. Everything went like clockwork and so efficient. You are impressed so you sign authorizing the work. Mission accomplished – for the ‘Handyman’! Nothing wrong has been done; in fact, you have just been entertained by a well orchestrated and choreographed sales strategy.
Let’s revisit from the beginning.
The ‘Handyman THIS’ or ‘Handyman THAT’ company you contacted is a franchisee of a parent company. A franchise is defined as: the right or license granted to an individual or group to market a company's goods or services in a particular territory also a business granted such a right or license.” They were familiar to you because of massive advertising through all types of media by this parent company. The content of the advertisement is generic enabling it to be used throughout the country. All terms and/or services may not be available in all areas. (Read the small print.) They increase your confidence in their abilities by advertising their handymen go through a rigorous screening process; are professionals and have at least ten years of experience in their trade; fully insured and bonded and their work is fully guaranteed. This is capped off by advertising they do not charge by the hour, they bill by the job so there will be no surprises. Phase I of the sales presentation is successful – They got you to call! But let’s look a little deeper at these professionals. Many franchise companies when advertising for franchisees state - Previous construction experience isn’t required to own an in-demand home repair business. So who performs the actual work? Professionals that have at least ten years of experience in their trade and their work is fully guaranteed. Just because a person has ten plus years of experience in his trade does not mean he is a professional or proficient. The rigorous screening process usually consist the franchisee receiving $50.00 from a prospected subcontractor to pay for the cost of a criminal background check. If their criminal check returns no problems, then they can be covered under the franchisee’s insurance and bond ability. Very little if any probing is done into the person’s actual work experience although the customer is lead to believe differently. Then who supervises the work of these subcontractors if the franchisee does not possess previous construction experience. Good question, huh! Then, who guarantees and verifies the subcontractor’s work is performed correctly if the franchisee has no construction experience? It is another good question for which I have no answer. But you have already signed on the dotted line based on a smoke and mirror presentation.
Five minutes before the appointed time the handyman pulls up in front of your residence. He gets his paper work together as if preparing for your appointment with him. What you don’t know is this handyman has been sitting down the street out of sight or around the corner for fifteen or twenty minutes to insure he will be on time for the appointment. (This will come up again in a moment.) Slipping on the booties is really a good idea but its real purpose is to give the impression your property is going to receive kit glove treatment. A description of work is determined and then comes the phone call. The handyman will ask to use your phone, ever wonder why he did not use the cell phone incased on his belt? The ploy here is to get you to listen in on his phone call. Now comes the ‘magical’ part of the sales strategy. He calls the office, gives a description of work to be done. When he is through he starts answering questions either yes or no. In reality, when he surveyed the work to be done, he formulated how long it would take him to do the work including the time sitting down the road waiting for the appointed time, the time it took to complete the ‘free’ estimate, time it will require to pick up materials (if necessary), time it will take to clean up. Let’s say he figured it would take 2 days or 16 hours to complete the task, when he finishes the description of work to the office he is asked, will it take 1 day. He answers, no. He is then asked, more? His answer, yes. Two days? He answers, yes. Will it take two men? No. More? No. (You better believe the handyman more than covers the amount of time it will take him to complete the project) Now the office keys in 16 man hours, the description of work has nothing to do with pricing, into the computer and comes up with the cost of labor. Sixteen man hours usually translates to about $1120.00 which is split between the franchisee and the subcontractor. It appears to the customer the cost is based on the description given to the office over the phone when in reality it is based on the hours needed to complete the task. Average hourly cost $70.00. Usually the materials are paid for by the homeowner and not included in the money paid to the franchisee. Phase II is now complete – you have signed on the dotted line.
Check back for Part 2 of Franchised Home Improvement Companies, i.e. Handyman ‘THIS’
Subscribe to:
Posts (Atom)
Posts
