First Responder, Military, and Senior Discounts.
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SECTION 22

Pricing, Discounts & The Mysterious Coupon That Expires Tonight

22.1 Purpose

Eventually the customer asks:

“How much?”

This should not be the most mysterious part of the service call.

Klein Cooling believes customers should understand:

  • What something costs.
  • What is included.
  • Why different options cost different amounts.
  • What discounts actually apply.
  • What they will pay before authorizing work.

The price should not depend on:

  • What kind of car is in the driveway.
  • How nice the house is.
  • How desperate the customer appears.
  • Whether they seem wealthy.
  • Whether they are elderly.
  • Whether they ask for a discount.
  • Whether the technician thinks they can “get more.”
  • How long they stare at the estimate.

OPERATING PRINCIPLE

Price the work.

Do not price the customer.


22.2 We Do Not Size Up the Customer

Technician pulls into driveway.

There is:

  • A new Mercedes.
  • A boat.
  • A pool.
  • A large house.

This information tells us almost nothing about what an HVAC repair should cost.

Likewise:

  • Older car.
  • Small house.
  • Modest neighborhood.

does not automatically mean the customer needs a discount.

The repair has a price.

The customer has a driveway.

These concepts need not interact.


22.3 The Price Comes Before the Work

For chargeable work:

Explain the repair and price before performing it.

Customer should understand:

What are you doing?

and:

What will it cost?

before we begin.

Do not complete the repair and then say:

“Okay, with everything we did, you’re at $847.”

The customer should not experience the invoice like the final round of The Price Is Right.


22.4 Authorization Matters

Before performing chargeable work:

Obtain customer authorization according to company procedure.

Do not assume:

“Well, they called us out here, so obviously they want it fixed.”

They called us to diagnose the problem.

They still get to decide whether to purchase the repair.

OPERATING PRINCIPLE

Diagnosis identifies the problem.

Authorization starts the repair.


22.5 Flat-Rate Pricing Means Flat-Rate Pricing

When Klein Cooling uses established repair pricing:

Use the established price.

Do not improvise based on:

“That one was really easy.”

or:

“That one sucked.”

The customer is purchasing the completed repair.

Not renting the technician by emotional difficulty.

Some repairs go beautifully.

Some involve:

  • Rust.
  • Stripped screws.
  • Attics.
  • Wasps.
  • Previous wiring.
  • Components installed by people who apparently hated future technicians.

Pricing systems exist partly because individual jobs vary.

Follow company pricing.


22.6 Do Not Charge Less Because It Took Five Minutes

A technician may diagnose and repair something quickly because they:

  • Have training.
  • Have experience.
  • Have the correct tools.
  • Stock the correct part.
  • Have seen the failure before.

That is not a pricing error.

Customer:

“That only took you five minutes.”

Do not become defensive.

The value is not simply:

five minutes of physical movement.

It includes the ability to identify the problem correctly and solve it.

We do not apologize for competence.


22.7 Do Not Charge More Because It Was Annoying

The reverse applies.

If the repair price is established:

Do not add:

Pain in the Ass Fee — $175

because:

  • The screws were rusted.
  • The attic was hot.
  • Access was difficult.
  • The customer watched.
  • A lizard entered the electrical compartment.

If unusual conditions materially change the actual scope:

Explain that before proceeding whenever reasonably possible.

Annoyance itself is not a line item.


22.8 The Diagnostic Fee

The diagnostic fee is the price for:

diagnosing the problem.

It is not:

the price of showing up.

The customer is paying for us to determine what is wrong and provide an appropriate recommendation.

Under current Klein Cooling policy:

Diagnostic Fee: $85

When waived with an approved repair under applicable company policy:

Explain that clearly.

Do not make the customer decode the invoice to determine whether it was waived.


22.9 “But You Were Only Here Ten Minutes”

Maybe.

If the diagnosis is complete:

Good.

The goal is not to remain at the property long enough to make the diagnostic fee appear emotionally justified.

Do not walk around the condenser slowly for another 25 minutes because you found the failed capacitor immediately.

Accuracy matters.

Not theatrical duration.


22.10 Standard Service Call

Where applicable under current company pricing:

Standard Service Call: $196

Use the established company scope and pricing.

Do not create different versions depending on:

  • Neighborhood.
  • Customer personality.
  • How easy the repair looks.
  • Whether they found us on Google.
  • Whether they have used us before.

Any legitimate plan or promotional discounts shall be applied according to policy.


22.11 Show the Price Clearly

Do not bury the total.

The customer should be able to find:

THE PRICE

without reading:

  • Fine print.
  • Six pages.
  • Financing disclosures.
  • Equipment literature.
  • The Dead Sea Scrolls.

If the project is:

$10,998

show:

$10,998.

Transparency should be visually obvious.


22.12 Retail Price and Actual Price

When a legitimate discount applies, showing both may be useful.

Example:

Retail Price: $10,998
Applicable Discount: -$1,000
Customer Price: $9,998

Good.

The customer can follow that.

Not:

Retail: $14,998
Special: $12,998
Manager Discount: $11,998
Today Only: $10,998
Technician’s Personal Miracle Price: $9,998

At some point:

Nobody believes the first number.


22.13 The Fake Retail Price

Do not inflate a supposed retail price solely so the discount appears larger.

If the regular price is:

$10,000

do not suddenly make it:

$13,000

so we can announce:

$3,000 OFF!

That is not a discount.

That is creative writing.

Our pricing should withstand the customer seeing:

  • Yesterday’s estimate.
  • Today’s estimate.
  • Their neighbor’s estimate.
  • Our website.
  • Our Jobs Map.

Because they might.


22.14 Published Pricing

If Klein Cooling publishes pricing publicly:

Honor it according to the stated scope and conditions.

If the customer’s project legitimately differs:

Explain why.

Example:

“The price you saw is for a standard replacement. Your installation requires additional return-air modification because the existing duct cannot support the proposed equipment. Here’s exactly what we’re adding and what it costs.”

Good.

Not:

“Those are just starting prices.”

unless they actually were clearly published as starting prices.


22.15 Our Jobs Map Exists

This is important.

Klein Cooling publicly shows examples of:

  • Actual jobs.
  • Locations.
  • Work performed.
  • Retail prices.
  • Actual customer prices where applicable.

That means our pricing may be compared.

Good.

That is intentional.

Do not treat price transparency as a problem technicians need to work around.

It is part of who we are.

OPERATING PRINCIPLE

If we’re uncomfortable with customers comparing our prices, the solution is not hiding the prices.


22.16 “My Neighbor Paid Less”

Maybe.

Ask:

“Do you know what equipment and scope they had?”

Two houses may differ in:

  • Tonnage.
  • Equipment type.
  • Efficiency.
  • Air-handler location.
  • Duct modifications.
  • Electrical work.
  • Lineset.
  • Drainage.
  • Accessories.
  • Promotions.
  • Installation conditions.

Explain the difference if one exists.

If we made a mistake:

Correct it.

Do not invent a difference because the customer found two comparable prices.


22.17 “Your Website Says…”

Listen.

Check it.

If the customer is correct:

Honor what we published according to its stated terms.

Do not argue with our own website.

That is an unusual debate to lose.

If information is outdated or incorrect:

Tell the office.

Fix it.

Transparency requires maintenance too.


22.18 Discounts Must Be Real

Legitimate discounts may include:

  • Published promotions.
  • Maintenance-plan discounts.
  • Veteran discounts.
  • Manufacturer rebates.
  • Utility rebates.
  • Financing-related promotions.
  • Other approved company offers.

Apply them according to the actual terms.

Do not create spontaneous discounts because:

“I feel like we need to close this one.”


22.19 Veteran Discounts

Where Klein Cooling offers an applicable veteran discount:

Apply it according to current company policy.

Do not use the discount as a sales gimmick.

Do not inflate the base price first.

Do not make the customer feel like they need to perform military service verification at the kitchen table unless actual program requirements require documentation.

Be respectful.

Apply the policy.

Move on.


22.20 Maintenance-Plan Discounts

If a customer receives a plan discount:

Show it.

Example:

Repair Price: $396
Plan Discount: -$40
Plan Customer Price: $356

Now the customer can see the benefit.

Do not merely say:

“I took care of you.”

Tell them what actually happened.


22.21 Do Not Discount Against Yourself

Technician:

“The repair is $696.”

Customer:

“Okay.”

Technician:

“I might be able to do $596.”

Why?

They said:

okay.

Silence is also not a request for a discount.

Do not lower prices because you become uncomfortable presenting them.


22.22 Do Not Apologize for the Price

Avoid:

“Unfortunately, it’s $896.”

“I know this is expensive…”

“I’m sorry, but…”

If the price is appropriate:

State it professionally.

“The repair is $896. That includes ___.”

Then explain.

You do not need to sound thrilled.

You also do not need to deliver the number like a physician giving bad news.


22.23 Sticker Shock Is Allowed

Customer:

“Holy crap.”

This is allowed.

Do not become defensive.

Do not immediately discount.

Do not lecture them about company overhead.

Let them react.

Then answer questions.

HVAC repairs cost real money.

Customers are allowed to notice.


22.24 “Why Is It So Expensive?”

Answer.

Do not become offended.

Depending on the job, explain:

  • Parts.
  • Labor.
  • Diagnostic expertise.
  • Materials.
  • Warranty.
  • Permit.
  • Equipment.
  • Installation.
  • Commissioning.
  • Business overhead where relevant.

But do not respond with a 17-minute monologue about:

  • Insurance.
  • Fuel.
  • Payroll taxes.
  • Software.
  • Truck payments.
  • Workers’ compensation.
  • The price of ladders.

unless the customer genuinely wants the full breakdown.

Although:

We may literally have an AC University article for that.


22.25 The Customer Found the Part Online

Customer:

“That capacitor is $25 online.”

Possible.

They found:

a capacitor.

Our repair includes more than possession of the capacitor.

Explain calmly.

Do not say:

“Then buy it online.”

Do not become insulted.

They are trying to understand the price.

Help them understand it.


22.26 Parts Markup Is Not a Confession

Businesses mark up materials.

This is normal.

Pricing must account for:

  • Purchasing.
  • Stocking.
  • Warranty.
  • Truck inventory.
  • Returns.
  • Labor.
  • Overhead.
  • Availability.
  • Business operation.

We do not need to behave as though the customer discovered classified information because:

Supply-house price ≠ installed repair price.

Correct.

Those are different things.


22.27 Do Not Make Up a Parts Cost

If you do not know what the company paid:

Do not invent it.

Customer:

“What does that motor cost you?”

If you don’t know:

“I don’t know our exact cost on that motor. Our installed repair price is $___ and includes ___.”

Perfectly acceptable.

Do not begin reverse-engineering inventory cost at the condenser.


22.28 “Can You Do Any Better?”

This is a question.

Not an attack.

Check:

  • Applicable discounts.
  • Promotions.
  • Alternative legitimate options.
  • Scope changes that actually make sense.
  • Approved pricing authority.

If nothing applies:

Say:

“That’s the price for that repair.”

This is an available sentence.


22.29 Do Not Invent a Discount Name

Customer:

“Can you do any better?”

Technician:

“I can give you the… uh… local homeowner discount.”

No.

Discounts should exist before the customer asks for one.

Not be born during eye contact.


22.30 “Cash Price”

Follow current company policy.

Do not create an off-book cash price.

Do not imply:

cash means we don’t have to report it.

Absolutely not.

If an approved payment-method discount exists:

Apply it transparently.

Otherwise:

The price is the price.


22.31 Tips

Do not solicit tips.

Do not imply they are expected.

If a customer voluntarily offers a tip and company policy permits acceptance:

Handle it according to policy.

Do not hover over the payment screen while:

15% / 20% / 25%

glows between you and the homeowner like a hostage negotiation.

We are HVAC technicians.

Not a frozen-yogurt kiosk.


22.32 Do Not Add Surprise Charges

If the scope changes:

Stop.

Explain:

  • What changed.
  • Why.
  • Additional cost.
  • Available options.

Obtain authorization.

Then proceed.

Do not wait until completion and say:

“We ran into some things.”

The customer should hear about:

the things

before the things become:

$1,200.


22.33 Unknown Conditions

Sometimes legitimate unknowns exist.

Example:

“This price assumes the existing lineset can be reused after inspection and testing. If it cannot, we’ll stop and discuss the replacement option and cost before proceeding.”

Good.

This identifies the uncertainty.

Do not promise a fixed scope when we genuinely cannot know something until work begins.

But:

Do not use vague exclusions to turn every job into an open-ended invoice.


22.34 Change Orders

When substantial work outside the authorized scope becomes necessary:

Document it.

Explain it.

Price it.

Obtain approval.

Then perform it.

The sentence:

“We were already here.”

does not authorize additional work.

Section 17 remains undefeated.


22.35 Do Not Charge for Our Mistake

If Klein Cooling made an estimating mistake:

That is not automatically the customer’s financial responsibility.

Example:

We clearly included a required component in the agreed scope but failed to account for it in our internal pricing.

Do not arrive halfway through the installation and tell the homeowner:

“We forgot to charge you for this.”

Company errors should be handled internally according to management direction.

The customer should not finance our calculator malfunction.


22.36 Customer-Requested Changes Are Different

If the customer changes the agreed scope:

Different situation.

Example:

Original:

Standard thermostat.

Customer during installation:

“Actually, can we upgrade to the communicating thermostat?”

Sure.

Explain the additional price.

Customer-requested additions may legitimately change the project cost.

Document them.


22.37 Price Matching

Klein Cooling does not need to match every competitor’s price merely because another number exists.

Compare:

  • Equipment.
  • Scope.
  • Warranty.
  • Installation requirements.
  • Included work.
  • Actual differences.

If management chooses to adjust pricing:

Fine.

But do not remove necessary work simply to hit another contractor’s number.

OPERATING PRINCIPLE

We can change price.

We do not lower standards to change price.


22.38 “They’re $2,000 Cheaper”

Maybe they are.

Find out whether the proposals are comparable.

If they are:

They may simply be cheaper.

This is possible.

We do not need to invent:

“They probably don’t pull permits.”

or:

“They probably use subcontractors.”

or:

“They’ll get you later.”

We don’t know.

Explain our proposal.

Let the customer decide.


22.39 Do Not Insult the Customer for Shopping

Customers may get:

  • Two estimates.
  • Three estimates.
  • Five estimates.

They are spending thousands of dollars.

This is reasonable behavior.

Do not say:

“You get what you pay for.”

as a substitute for explaining our value.

Sometimes people pay more and get worse.

Price alone proves very little.


22.40 The Lowest Bid

If we are not the lowest bid:

Fine.

Explain why we believe our price represents the work we are proposing.

If the customer chooses the lower bid:

Thank them for the opportunity.

Do not predict:

“You’ll be calling us to fix it.”

Maybe they will receive an excellent installation.

We hope they do.


22.41 The Highest Bid

Likewise, higher price does not prove higher quality.

Never use:

“We’re more expensive because we’re better.”

as the entire explanation.

Show:

  • Scope.
  • Process.
  • Standards.
  • Transparency.
  • Warranty.
  • Documentation.
  • Actual differences.

The customer can decide whether that is worth the difference.


22.42 Replacement Pricing

Replacement pricing should reflect the actual project.

Consider applicable:

  • Equipment.
  • Materials.
  • Labor.
  • Permit.
  • Electrical.
  • Drainage.
  • Duct modifications.
  • Equipment access.
  • Lineset.
  • Pad/stand.
  • Tie-downs.
  • Thermostat.
  • Startup.
  • Commissioning.
  • Disposal.
  • Warranty.
  • Job-specific requirements.

Do not start with:

“What do we think they’ll pay?”

Start with:

“What does this job require?”


22.43 Do Not Increase Price Because the Customer Is Desperate

No-cool.

August.

97°F.

Customer has children.

Customer has elderly parents.

Customer is miserable.

None of this changes the established price of the repair.

Urgency may affect:

  • Scheduling.
  • Availability.
  • Actual after-hours policy where applicable.

It should not become:

Desperation Pricing.


22.44 Do Not Discount Because You Feel Sorry for Them Without Authority

Compassion matters.

But technicians should not create random pricing policy in the field.

If a customer genuinely needs assistance:

Contact the appropriate company decision-maker.

There may be:

  • Approved discounts.
  • Community programs.
  • Financing.
  • Charitable assistance.
  • Other legitimate solutions.

Help appropriately.

Do not quietly turn every difficult story into a different price book.

Consistency matters too.


22.45 Free Work

Klein Cooling may intentionally provide work at no charge in specific circumstances.

Examples may include:

  • Approved community assistance.
  • Warranty correction.
  • Company error.
  • Authorized goodwill.
  • Promotional service.
  • Free second opinion.

When work is free:

Make it clear.

Do not create a fake price and then theatrically cross it out to make generosity look larger.

If we’re helping someone:

Help them.

The act does not require special effects.


22.46 Free Second Opinions

Section 14 applies.

If advertised and offered as:

FREE SECOND OPINION

then follow the actual offer.

Do not use free as a doorway into surprise diagnostic charges.

If additional chargeable work becomes appropriate:

Explain it first.


22.47 Pricing Should Survive Publication

This is a useful standard.

Imagine the customer posts the invoice online tomorrow.

Could we explain:

  • What we charged.
  • What we did.
  • Why.
  • What discount applied.

without embarrassment?

Good.

Because they may.

OPERATING PRINCIPLE

Price every job as though the invoice may eventually become public.

Our Jobs Map already makes this less theoretical.


22.48 Do Not Fear Transparency

Some customers will think we’re expensive.

Some will think we’re reasonable.

Some will compare us to:

  • Their cousin.
  • Their old contractor.
  • An online part.
  • A guy from Facebook.
  • A national company.
  • A neighbor’s 2019 installation price.

Fine.

Our response is not secrecy.

Our response is:

clarity.


22.49 Explain Value Without Performing a TED Talk

If asked why Klein Cooling costs what it costs:

Explain what matters.

For example:

“That price includes the complete repair, the part, labor, testing, and our warranty. I’ll show you exactly what failed and what we’re replacing before we do anything.”

Done.

If they want the full economics of running an HVAC company:

Fantastic.

Send them:

DOWN TO THE LAST FREAKING SCREW

AC University is about to have a field day with this section.


22.50 The Customer Says No

Okay.

Do not immediately lower the price.

They may be saying no because:

  • They want another estimate.
  • They cannot afford it.
  • They want to think.
  • They prefer repair over replacement.
  • They prefer replacement over repair.
  • They simply do not want to buy.

Ask a useful question if appropriate.

Do not begin:

Discount Staircase Mode.


22.51 A Discount Should Not Be the Reward for Saying No

If the customer learns:

Every time I say no, the price drops $500

we have trained them correctly.

Unfortunately, we have trained them to distrust our first price.

If the original price is legitimate:

Stand behind it.

If a legitimate discount exists:

Offer it transparently.


22.52 Do Not Create Artificial Urgency Around Price

Avoid:

“This price is only good while I’m here.”

“Once I leave, I can’t guarantee this.”

“I can only get this approved today.”

unless a legitimate, documented condition actually creates that deadline.

The technician’s truck crossing the property line does not normally alter wholesale equipment pricing.

See Section 18.


22.53 Legitimate Expiration Dates

Some prices or promotions may legitimately expire because of:

  • Manufacturer programs.
  • Utility rebates.
  • Published company promotions.
  • Financing offers.
  • Known equipment-price changes.
  • Estimate validity periods.

Fine.

Explain the actual date and reason.

No countdown clock required.


22.54 Errors

If the estimate contains an obvious error:

Correct it.

Do not knowingly honor:

$11.98

for an:

$11,980

system because:

“Well, that’s what the estimate says.”

Likewise, do not casually change a legitimate agreed price because we later wish we had charged more.

Escalate genuine pricing errors appropriately.

Use judgment.


22.55 Pricing Conversations Should Feel Boring

This is a compliment.

The ideal pricing conversation is:

“Here’s what failed.”

“Here’s what we recommend.”

“Here’s the price.”

“Here’s what it includes.”

“Would you like us to take care of it?”

That’s it.

No:

  • Games.
  • Fake manager calls.
  • Mystery discounts.
  • Dramatic pauses.
  • Secret price sheets.
  • Today-only miracles.
  • Financial profiling.

Pricing should be one of the least dramatic parts of the visit.


22.56 The Klein Cooling Pricing Test

Before presenting a price, ask:

Is this the established price for this work?

Would I charge the same price to a different customer for the same scope under the same circumstances?

Did I price the work rather than the customer?

Does the customer understand what is included?

Did I separate required work from optional work?

Are all discounts legitimate and explainable?

Did I show the actual total price?

Did I obtain authorization before performing chargeable work?

If the scope changed, did I explain the additional price before continuing?

Would I be comfortable with this invoice being posted publicly tomorrow?

Could another Klein Cooling employee explain exactly how we arrived at this price?

If yes:

Present it.


22.57 Final Standard

Tell people what things cost.

Before they buy them.

Charge consistently.

Price the job.

Not the driveway.

Not the neighborhood.

Not the customer’s desperation.

Not the customer’s apparent income.

Do not inflate prices so discounts look bigger.

Do not create discounts because the customer blinked.

Do not hide the cheapest legitimate option.

Do not hide the total behind a monthly payment.

Do not add surprise charges.

Do not apologize for legitimate pricing.

Do not punish customers for shopping around.

Do not lower installation standards to match a competitor’s price.

And if our invoice gets posted online tomorrow:

Good.

We should be able to explain every dollar on it.

OPERATING PRINCIPLE

The customer should never have to wonder whether someone else would have been charged a different price for the exact same work.

The price should make sense before, during, and after the job.

END OF SECTION 22