Our furnace stopped working. We called Duke City, and they were able to come out same day (on a Thursday). Great. They diagnosed the issue within 30 minutes and were gone within the hour. Excellent. Unfortunately, they had to order the part, which wouldn't be in until Monday. Originally, the technician stated we'd pay expedited shipping on the part but they'd be out first thing Monday morning to get the part installed. I asked the tech before he left what was the price for everything. He verbally estimated $350-$375. He said the part was cheap and the labor would be the expensive part. I wasn't given the price in writing, showing the breakdown of the costs (this was my error, I should know better. They called us Friday evening to let us know they couldn't make it Monday as they were short on technicians. So after being quoted a price WITH expedited shipping, and to the fault of the company, we waited for install- we expected that original price to go down. They came that following Wednesday, and it was fixed within 30 minutes. (This is a total of roughly 2 hours of service, generously.)
Total cost $374.06, after they were nice enough to give a 5% military discount. Again, an invoice wasn't provided. However, I paid, and they were on their way.
My wife immediately pointed out the math didn't add up, 2 hours of service ($85 x 2 + $55 for a part = $225 plus tax). She called after the tech left to follow up regarding the charges.
I received my invoice the next morning around 8:30, as follows:
$195.00 for the part (hot surface igniter)
$170.00 for labor (2 hours worth)
Plus tax
I began to do research, as the original quoted price for the part was roughly $55. (Companies in the area won't release parts prices or sell to the public, only contractors, so when I called myself, prices could not be provided. However, I found the price for the part online, ranging $49 to $58, which is not the wholesale price that contractors get.)
My friend, who works for a local HVAC company, did a little research for me today. Here were the costs of the parts, as quoted by the 4 parts companies that they called -
1) $17 (the company Duke City got the part from - Johnstone Supply)
2) $13.76
3) $16.57
4) Same price as above, but plus shipping.
Duke City charged me $195 for a $14-$17 part through their company. That is flat out robbery. I understand wanting to make a little extra profit. Business has to make money. But, even giving them the benefit of the doubt, and saying they spent $20 on the part, that's almost 10x the price of the actual part!
My wife called Duke City and questioned Gloria, regarding the markup. She told my wife, Well, that's the price that was quoted by the first technician that did the diagnostic. I don't know where the miscommunication happened. Upon further request of resolution (as an oh well is not sufficient, she was told one of the business owners would follow up by tomorrow morning).
We will never do business with this company again. I will spread the word. Through social media, word of mouth, etc.
UDPATE
They sent me the invoice that they claim came from the parts company (Johnstone) and they broke it down as $88.60 for the part, and $99.55 for the freight/handling. Remember though, up above my friend clearly got a quote of $17 from the same company, for the same part. So something is up. Also, $99.55 for freight/handling?! They paid for what? Expedited shipping? Even though they knew they couldn't make it out until 3 days following their original promise of installation (Monday)? Give me a break. Not buying any of it. Regardless, if they gave me that price breakdown on the initial day of diagnoses, I would have turned it down. But, they didn't. They just verbally gave me the estimated cost of the whole project. Their verbal breakdown nowhere near matches the black and white invoice. Which, again, was 4 hours of service and a $55 part.
At the end of the end of the day, yes- the original price matched. But Duke City changed their breakdown- now, our invoice shows TWO hours of service and FOUR times the original quoted price on the part (when, really the part is only $17, as verified by another local HVAC contractor).
Now, my own opinion is that Duke City works with this company to inflate the prices of the parts that they sell. (We were also told by our friend, Johnstone will match a company's original quote to a client in an effort to support small businesses, regardless of what the actual price is.) This leads to return business for the parts company, and increased profits on behalf of Duke City for parts. (No wonder these parts companies won't release the price of the parts to the general public.) No matter the reasoning though, it's clear there is really something morally questionable about this company. Do business with them at the risk of your wallet. Imagine how many people they did this to before us?