Fuel Oil News

Fuel Oil News February 2017

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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www.fueloilnews.com | FUEL OIL NEWS | FEBRUARY 2017 45 BY GEORGE LANTHIER AND DAVID BESSETTE* HVAC/ HYDRONICS This article is a re-issue of one I wrote with Dave Bessette in 1995. I have dusted it off and updated it to include gas and an annual form for insur- ance purposes. This came about due to a request from one of my internet friends. I still get asked where I get my ideas for articles. In most cases, and as I have stated so many times, the ideas come from friends and colleagues, most of them being service managers and hands-on owners of small businesses. Most of these guys know more about the business than people realize, and they have, in my opinion, the toughest job in the business. On one side, they have the customers, on another the people who work for them, on another their boss and of course on another the vendors. In other words, they're in a box and that makes them, to my mind, the guardians of the oilheat business. Many in this industry are still living with the idea that service contracts make money. In my research, I found that mostly they were originally conceived by someone to increase cash flow during the summer when the industry didn't pump a lot of oil. There are two basic problems with contracts in my opinion. One is that even when they were a good idea, they now seem out of control; and the other is that we give them away on obsolete equipment. The oil industry has con- tracts that cover oil tanks and oil lines, not a good idea when you consider the liability involved. Is it good business to get yourself right up to your eyeballs in environmental litigation? We have contracts that cover plumb- ing, but not that many oil companies have a licensed plumber on payroll. We have contracts that cover wiring, but finding a licensed electrician on payroll is rare. We state and in writing, in most contracts, that we will check and clean the chimney and its base. Do you have people that are truly qualified to do this? Did you know that if the customer has a powerventer or direct vented system, that lawyers have argued successfully that these devices are mechanical chimneys and you should have serviced them if you didn't specifically exclude them? Today, in some marketing areas, we still have contracts that cover everything; wiring, plumbing, the boiler, oil tank and some also include putting out the trash once a week, and a daily walking of the dog. Cat owners can opt for a changing of the litter box with fresh oil-dry. I know that's being over the top, but think about it: What do you cover and why? And what do you think these desperate moves say to a consumer? I think they send a message that we are so desperate for their oil business that we will do anything—and that makes a consumer think it's probably because oil is not as good as gas or electric mini-splits, so we must make up for it by giving something away. If you're going to have contracts, you should at least find out if you want the account to begin with. Do you think you can get an insurance policy without being CHECK LIST

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