Question about Mark-up for an instant hot water heater.

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larry_stewart

Master Chef
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Dec 25, 2006
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Long Island, New York
We redid our kitchen about 12 years ago. We had an instant hot faucet ( with tank) included for convenience since we drink a lot of tea and other things that require hot water. My wife loves it. 2 years ago, the tank went bad and actually created a non identifiable smell ( we didnt know it was coming from the instant hot water tank) so we called the fire department ( that was a real treat). Anyway, we have since replaced the tank ( 2 years ago). We called the place who did our kitchen at the time. Of course, it was past warranty , but they said they can order us a new one, and recommend one of their plumbers to install it. We got the tank, the plumber came , installed it, and its been great until 2 days ago ( 2 years after it was installed).

We called back the Kitchen company again, and said we should contact the company directly so they can trouble shoot with us to see if its a simple fix, check the warranty .....

After the background story, here is my question. What is considered an acceptable amount for the kitchen company to mark up the value of the instant hot tank in price? We called them, they ordered it, we went to their showroom to pick it up ( about 20 minutes away).

I can get a new tank for about $300 ( I checked multiple sites and amazon, who willl deliver it to my house in 2 days). So how much would you be ok with the Kitchen company charging extra ( above the $300) before you felt like you were being taken advantage of ? ( remember, they just ordered it, this does not include installation or delivery).
 
I doubt that there is any one answer.

I would expect a 100% markup plus labor.

Some retailers markup is 4 to 6 times actual cost.

It sounds like a lot but every business has a different type of overhead.

What do you feel is an appropriate markup for your materials, implants, etc…, use that as your guide in dealing with others.
 
Three years ago, we installed a whole house instant water heater. I called my local plumber - he recommended a size and brand - I bought the unit through Home Depot. My plumber installed it and charged an hourly rate with no additional markup. I have been extremely pleased. the unit has been reliable and more than adequate for my house. My gas bill dropped dramatically (average $20-25 per month).
 
The labor I'm not concerned about. It's the part itself. They sold it to us for almost %300 of the asking price. I blame myself for not looking on the internet and getting the same exact thing for 1/3 the price. I just think %300 is a little steep. Sure, I understand everyone has to make $$$, but I think this was above and beyond that. Especially since were previous customers who also gave them a bunch of business through referrals. Just rubs me the wrong way. But again, I blame myself for not doing my homework.
 
Three years ago, we installed a whole house instant water heater. I called my local plumber - he recommended a size and brand - I bought the unit through Home Depot. My plumber installed it and charged an hourly rate with no additional markup. I have been extremely pleased. the unit has been reliable and more than adequate for my house. My gas bill dropped dramatically (average $20-25 per month).
Should we need to get a new one, thats what we are going to do. Buy it online ( for 1/3 the price) and have our regular plumber install it ( for 1/4 the price the first guy charged us). I'd put it in myself, as it would be the same unit so pretty simple, I just prefer a pro does it. We're currently checking the warranty status, and will also contact the company, directly, two trouble shoots and make sure it's nothing simple and stupid.
 
For our electric water heater (not an instant heater like yours @larry_stewart ). If you can find a plumber or electrical person when it is not an emergency, it's usually less expensive and you can take time to figure it out. (and heat water on the stove, yes we did that) When our water heater was ruined it happened to be an emergency for all our neighbors too within 40 miles or more with water in basements and rivers over flowing. We picked up a water heater and had a plumber make it easy for us to connect now and in the future with connectors that are available at home depot. Two supply line connectors are less than $30, and we can do the connections ourselves now. Same with our water softener. https://www.homedepot.com/p/Everbil...ater-Heater-Supply-Line-EBBC-07-24a/206527409
That saves us having to call a plumber for two appliances.
 
So there is a happy ending
First of all, we called up the company that makes the instant hot water heater. With no issues, they said that there is a 5 year warranty and all we have to do is get the original purchase order ( which we did from the company that did our kitchen), take a few pics, and they will send us a new one.

Secondly, when we got the original purchase order from the kitchen company, it turns out that we had gotten the water heater and a new faucet for the water heater , which explained why it was so much. when breaking it down, it turns out they only charged us an additional %20, which I think was fair.

All well that ends well. We sent everything in, hopefully will receive the new water heater soon, and be back in business.

***Glad we hasty to complain, we would have looked like idiots***
 
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