To my dismay, my beloved hot tub stopped working the other day. It had been fully operational since 2016, but when I went to visit it for a late morning soak, I found its GFCI circuit breaker not working. When I tried to flip it back on, the circuit popped down within three seconds.
I decided to call an electrician I had used before to see what was going on. He texted me back, quoting a $200 service fee for a visit, and I agreed without hesitation. I needed my hot tub operational again ASAP! It is a vital part of my post ideation process.
When the electrician arrived, he confirmed that the electrical was wired correctly. However, he found that the heat pump was dripping water onto an electrical line, which caused the circuit to break. To troubleshoot, we drained and refilled the hot tub to test it, ultimately concluding that we needed a new heat pump. The first visit lasted about 1.5 hours.
Spent More Money And Still Didn't Work
On the second visit, the electrician brought the new heat pump and installed it. Although the installation and testing only took about an hour and change, I was charged $646 — $253 for the heat pump and $393 for labor.
After filling the hot tub and testing the jets and heat pump, nothing happened. The control panel indicated that the thermostat wasn’t working, which meant the heat pump couldn't be triggered. At this point, I had paid $843 and still had a non-working hot tub.
I felt so lost. With the inability to generate post ideas in the hot tub, was this the end of Financial Samurai? For the past couple of years, I had thought that artificial intelligence would do this site in. Maybe not!
Cut My Financial Losses or Keep Going?
I had a decision to make. Should I keep paying this electrician with no guarantee of a fix, or reach out to a hot tub repair specialist who charged a $225 service fee, which would go toward further repairs beyond one hour, if needed?
I realized I'd made a mistake by not hiring a hot tub specialist from the start, so I decided to cut my financial losses. The electrician assured me he'd find a way to bypass the code and get everything working, and I shrugged. Deep down, though, I knew he wouldn't follow through. And he didn’t, a week later.
Tony, the hot tub repair specialist, was incredible. Although it took 10 days to get an appointment, it was worth the wait. As soon as he arrived, he opened the panel and immediately spotted the issue — my previous electrician had misplaced the sensor wire after replacing the heat pump. He also found a loose connector and convinced me to purchase a new $125 filter, something I hadn't replaced in seven months.
In an hour, Tony had completely fixed the hot tub and charged me $410, including the filter. It was a relief to finally see everything working again. But dang, $410 is a lot of money. How did that happen?
Lessons Learned from Cutting My Financial Losses on Service Repairs
The next day, after the water had warmed to a perfect 101 degrees, I got back into my baby and waited for the ideas to flow. Here are my thoughts on more strategically paying for services.
1. Take your time finding the right person for the job
The main lesson I learned is to not rush to hire just any repairman. Take time to research and hire a specialist who focuses on your specific problem. My first electrician claimed to have worked on hot tubs before, so I trusted him. But he didn’t know the make and model of mine, didn’t test the necessary connectors, and lacked the right parts and tools. Specialists tend to have more experience and a higher likelihood of solving the problem efficiently.
Tony, the specialist, has been repairing hot tubs for over 20 years and has seen all makes and models, making him well-versed in the most common problems. He arrived fully prepared with extra filters and the right tools. Unfortunately, he had just sold his last UV Clear Ray bulb, which filters the water. Otherwise, I would've spent another $150 installing it.
2. Keep your emotions in check to avoid overpaying
The more you love a product, the more willing you may be to pay whatever it takes to fix it. This is why colleges can charge so much for tuition and hospitals can demand high fees for healthcare—you love your children and your life more than anything.
When the electrician charged me $646 for the second visit, I quickly paid it through Venmo, hopeful my hot tub would finally be back to normal. Unfortunately, it wasn't. Red warning lights appeared after he flipped the switch. Still, the electrician told me to “just wait a bit” and assured me the hot tub would start working. Then he disappeared for a week without a solution.
As an analytical person, in retrospect, I was disappointed that I let my emotions take over and simply trusted what the electrician said instead of investigating the blinking red lights myself. All I needed to do was read the control panel, which clearly indicated the thermostat wasn't working, and do a quick Google search. But I had hope that eventually the hot tub would work again on its own, that the thermostat was just on a delay since the jets worked. I was also feeling the pressure of his $155 hourly charge, which made me want to hurry things up.
3. Ask what happens if the problem cannot be fixed
Once you pay your service person in full, their incentive to complete the job often diminishes, whether the problem is fixed or not. So don't be in a hurry to pay without fully testing. It's crucial to discuss what happens if they can't fix the issue. Will you get a refund? Do they offer any guarantees? At the end of the day, all you want is the problem resolved.
After my hot tub was finally repaired by the second guy, I requested a $200 refund from the first electrician for the initial service fee. To my surprise, he quickly sent it back via Venmo. His boss was in the group text, as it was his boss whom I initially contacted who sent his guy out.
While I still ended up paying $400 for an unsuccessful repair, the first guy at least got and installed a new heat pump, which I'm assuming I needed. I also recognized that the electrician deserved to be compensated for his time and labor. However, had I been more patient and logical, I could have minimized my financial losses and saved some frustration by going with a specialist instead.
4. Learn to maximize profits by putting customers at ease
Tony, the hot tub repair specialist, offered a masterclass in customer service and salesmanship. Although he recognized the problem quickly, he took the time to explain hot tub maintenance to me. The explanation helped filled up time and helped justify charging for his time. He also persuaded me to buy a $125 filter that I could have purchased online for less. His patient approach made me feel confident in his expertise. And why wouldn't I get a new filter that only needed to be changed every four years instead of every six months, for only twice the cost?
Tony understood my desperation to get the hot tub fixed. By educating me and providing a clear value proposition, he maximized his profits while still keeping me satisfied. It wasn’t until three days after the hot tub was fixed that I looked up the cost of the filter online — just $80. Tony had given me a backward explanation for his higher price, claiming that because he ordered directly from the distributor, he was charged more than retail. At the time, I believed him because I was just so relieved to have the hot tub working again.
As customers, we tend to justify expenses when we understand their purpose. As business owners, helping clients rationalize costs through education can lead to better outcomes for both parties.
When In Doubt, Be Patient And Kind
Being thoughtful and kind goes a long way in business. Studies have shown that doctors who spend more time with their patients are sued far less. Employees who are cordial with colleagues and managers are more likely to receive a generous severance package. Similarly, home sellers who take the time to explain their property's systems and quirks are less likely to face legal issues if problems arise after the sale.
Taking a moment to be considerate can make a meaningful difference. I'm going to remind myself of this tip the next time I receive an insulting comment after writing an innocuous post.
Maintenance Is the Price of Having Nice Things
Ultimately, I spent $1,043 to fix my $16,000 hot tub. I might have saved $393 had I gone straight to the hot tub expert, although it's possible he would have charged me the same amount to install a new heater pump — a part I'm not entirely sure was necessary in hindsight.
Thankfully, I was prepared to spend up to $5,000 to repair it and even considered buying a new one for $20,000. That's how much I valued the joy and purpose the hot tub brought me. However, after the first electrician's second visit, I had no confidence that spending any more money would solve the issue since he clearly wasn't an expert. So I cut my financial losses.
An Inexpensive Lesson Learned
I'll chalk up the possible extra $393 in labor costs to a financial lesson about paying for service. If you find yourself in a similar situation, take the time to find the right expert, keep your emotions in check, and assess the true value of the service before making a decision. Don’t be afraid to do some research on the spot after being quoted a price. Take your time. Labor is expensive these days — either hire the best from the start, build a relationship with someone you trust, or learn to handle repairs yourself.
This latest maintenance issue is a reminder of why I'm considering selling at least one more physical rental property to simplify my life. Dealing with unexpected repairs is a constant headache — something always seems to break. At this stage, I'm just not as willing to handle these random fixes as often as I used to.
Have you ever faced a situation where you spent a significant amount of money trying to fix something and had to decide whether to cut your financial losses or keep going? How did you make that choice? Have you ever tried negotiating a flat rate for a repair instead of paying an hourly rate? I'd love to hear your experiences.
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The problems for service in the US (maybe Canada too) are as follows: 1. Average people aka middle class are too overwhelmed to research for a reasonable solution for any mechanical/household issue, simply no time, no energy, unless one has strong interest in that kind of stuff or willing to spend a lot of time learning about the issue; 2. That leads to the mindset “relying on the professionals”; 3. It is very difficult these days to find good quality, trustworthy, with reasonable cost labor to solve these issues. Chances are you spend the money and time, it may look ok for a little bit then it doesn’t work again because nobody cares to provide the solution but just some patch-up work to collect the bills. This is tied up to the great decline in labor and attitude quality in the US in the past decade and middle class will continue to feel the pain. There is simply no competition for US labor when compared to Chinese labor in current days, in terms of quality, efficiency, and cost.
Fair points. It’s upon us, the consumers who need help, to do as much research as possible.
One way to increase the chances of good service is to also mention you will leave a good Yelp and Google review if they do a good job.
I hired a company once to come and clean the hot tub. They dumped all the water into the back lane, prompting a concerned neighbor to call the city water services department to come and investigate. Luckily, I wasn’t fined, but the water wasn’t supposed to be drained like that. The cleaning fee was $250. About a week later one of the pumps broke and it was $700 to get it fixed. I’ll never call a cleaning service again!
Another occasion I hired a carpenter to fix an interior door that was hitting the ground once the angle passed 45 dregrees. The guy showed up with another very sketchy looking worker claiming he didn’t work alone and asked for $200 to fix the door. He claimed he might have to shorten the door and wasn’t sure how long it would take. I agreed and he just shimmed the door and the whole job took 2 minutes. It was low dollar, but felt like robbery and I just wanted them out of my house. He had the nerve to text me after and ask if I would give out his number to my friends.
I scratched and dented my Tesla door and the quote was 6k- I decided to live with the imperfection.
Ugh, bummer! But gotta give credit to the carpenter who is trying to hustle and sell as much as possible to make money.
It’s funny, but even though you feel you are being gamed, it’s our emotions that what them to get the job done ASAP that makes us pay for anything.
One of the reasons why I don’t want to buy a new car is due to the inevitable future scratches and door dings. At almost 10 years old now, I don’t care about them anymore. Bring them on!
I concur. The carpenter’s costs include his labor, equipment, vehicle, insurance , etc., all expenses that need to be covered even for a small job. So what appears an exorbitant $200 charge for a ten minute repair is not a big money maker for the service provider. The provider should communicate this to the customer.
Sam, thanks for your empathetic and courteous approach finding the right repair person. As part owners of a small handyman business in Central WA, my business partner and I know first hand assessing a repair problem, meeting customer expectations AND generating positive cash flow for the business. We always return calls, never ghost a customer and strive to make the best repair possible in a reasonable time. Sometimes we decline business that requires a licensed trades person or is outside our expertise. That being said, some repairs are more detailed and nuanced than they first appear and occasionally the first approach does not work as planned. Trades and handy people are problem solvers, much as a computer programmer, medical services provider or corporate manager are. That being said we bill the customer for all hours worked plus materials we purchase. If materials are particularly costly, we ask for up front payment. Communication and trust key inputs to success for both the customer and our business. Your post recognizes this and shows respect for your service providers. Much appreciated.
$200 arrival/service fee for the electrician? Damn, we need to increase our arrival fee!
Thanks Matt. Sounds like you have a good business.
How would you deal with a situation if the customer spend several hours paying your repair person to fix a problem, but it still wasn’t fixed, with no clarity on if/when it could be fixed? Is there some type of charge limit?
And yes, $200 is what it is here in SF. But at least the $200 is part of the labor cost if it takes more time than an hour to fix.
In that event we lower the number of hours billed without being asked. The situation you describe very rarely happens, as we scope out the job before accepting it. That being said we are very fair and transparent to our customers while ensuring our small business – two of us – remains profitable.
The application of the $200 arrival/service fee is very fair.
Sam.
There is a guy out there equal to “Financial Samurai” who runs a site called “Hot tub university”. Look it up, and you will see your own passion and dedication in an expert that only deals in hot tubs. i think you will be astounded in what he has to say about hot tubs and his knowledge and mastery of the business.
i personally have tubs all my life and could not live without mine, same soaks and insight every night for me so I can relate to what you are going thru!
I just went through this with a leak in my roof. It was emotional for me because I had spent 300 hours sanding my clear cedar ceilings. I have a flat roof, and live in the PNW. Not a good combo.
So I have been working on a massive remodel and had a patch done on the roof where a new addition joined the existing roof. This caused problems and a lot of water pooling, as a wall was now sitting on the flat roof.
Roof starts leaking, minor at first but it’s staining the cedar and dripping on the floor. I call the roofer who did the patch, he comes over and determines none of his patches are leaking. He proceeds to check seams in the area and does a couple small patches. He charges me $250. It dies not work, and gets worse. Now I have water flooding into the basement, going down the walls. My beautiful cedar is getting ruined in multiple areas now. I call the roofer back after I had placed thin plastic over the whole thing which slowed the leak but didn’t fix it.
Roofer comes back, probes all seams, marks them. It’s getting dark, he adds 4 patches, charges 500. Next day roof is leaking worse than ever. Call him back and he says I should go buy some sealant stuff that costs 500 bucks for 5 gallons and spread it over my roof. My electrition gives me a roofers name, who comes out the same evening, at this point I’m desperate and willing to do anything to stop the leak. Guy says he will charge 1k. I felt like it was a lot but he guaranteed it would be fixed.
I go up on the roof with him, pull the plastic back and see a mark the previous roofer made on a spot that he thought needed to be patched but missed because it was getting dark. I point it out to the roofer who patches it in about 10 minutes. He did not charge me saying once it stops leaking I can pay him. It fixed it, I had to pay him 1k, felt like robbery after a 10 minute patch, but due to my emotional response to wanted to save my cedar I agreed before fully assesing again. Felt like bad luck. I got a quote to replace the whole roof and it came in at 80k, so $1,750 for patches felt like a bit of a bargain.
Getting a couple, three is better, trades people out to assess.Then choose between them.
They’re working “a side job” so can come quickly. (I live in an area where companies
schedule 1-2 months out).
I often pay cash, mostly for smaller jobs, say under $1,000, so there’s generally no service fee for an evaluation visit.
I’ll ask them if they mind cash (a joke) they generally laugh and say sure then I ask
how about knocking off the back end. In other words how about we forget the tax.
Back in the day they’d give me a discount on the job price as well. Now, not so much – just the tax. Still here that’s 10%. If you do this for goodness sake’s don’t get an invoice (known as a paper trail) and for extra goodness sake’s don’t deduct it on your income tax.
I have found a fair number of my trades guys from job sites where they are
doing electrical, plumbing, heating, etc. I make sure to ask them if they have
finished their apprenticeship and are a full fledged electrician etc. Don’t think they have that for heating.
I also get referrals from other landlords that I know.
I don’t care for larger companies. I was in business for myself a fair amount of time.
That said if you’ve never done the above don’t use an individual for an expensive job. There’s no going back to them as our Financial Samurai did and if you do they don’t magically become better at the work they’re doing.
Never pay anyone in full up front. I do 50% upfront and 50% after I inspect the finished job. I know folks who pay 30% up front, 30% in the middle and 30% after inspection.
Some want additional $$ up front for the supplies. That ought to come out of the up front 50%. If a fellow doesn’t ask for up front money for supplies that’s a good sign. Mostly
it means they’re solvent and sensible.
Some who aren’t can still do good work. I had a crew of 3 that I hired to build a tricky staircase. 2 arrived and sat around waiting for the third saying they really couldn’t do anything without the 3rd guy. They’d all gone to high school together and told me he was probably on a bender. *whoa*. They also said he was the best at what he did. He was and designed me a beautiful staircase. He was the exception.
Have I been stung this way?
Sure. I’ve had guys do amazing work, pretty terrible work, lie about their experience or what they’re capable of (that’s common), disappear on the job (I owed each $400 bucks. The one guy a highly skilled craftsman got insulted by another trades guy.I knew that was about to happen but couldn’t get there in time. The other guy, skilled and intelligent, who had done work for me and in addition done work for free said he was trying to make up for a “bad past”. He just wouldn’t take my money.)
That’s how it goes. I don’t get it right all of the time of course. You win some you lose some. My goal is to get it right enough of the time that I stay in the black.
Mostly I take my knocks, learn a lesson, moan a bit and pay to get the job fixed so I can move on to the next one. As FS said, there’s always a next one.
Whew, longer post than I expected. Something must have broken somewhere by now, gotta go.
Awesome advice! Thanks for sharing.
And I’m definitely going to use your payment trick, whether they mind if I pay in cash next time! Lightens things up and creates a bond. Harder to screw over someone in such a scenario! But of course, pay once the job is completely done correctly.
“Some want additional $$ up front for the supplies. That ought to come out of the up front 50%. If a fellow doesn’t ask for up front money for supplies that’s a good sign. Mostly
it means they’re solvent and sensible.”
I view contractors asking for up front money for supplies as a signal. Is their credit so poor that they can’t receive Net-30 financing down at the supply shop?
Nah. Think about it from the contractor’s point of view. They get stiffed sometimes and have valuable time like everyone else trying to make a living. Imagine if they bought $10,000 worth of materials and the client changes their mind. It happens all the time.
Requiring a deposit is standard and necessary to stay in business, given the cost of labor and materials.
In my view, the only way to eliminate the problem is to simplify one’s life. Complex devices break and the subsequent expensive repair bill is rarely considered during the joy of the purchase. I get into heated discussions with my spouse every time that we buy a new and expensive appliance. Sometimes I will even question relatively simple things like having Alexa control our entire house and how this system breaks down regularly and needs to be rebooted or tweaked, and did this automation actually add convenience to our lives???
I have instituted a rule, that is rarely followed but “oh well”: if we buy an appliance, how painful would it be for our budget to throw it away and buy a new one? If we buy an appliance or anything large, how difficult will it be to throw it away? Will we have to pay a large disposal/recycle fee? The spouse in question has a tendency to stuff broken or rarely used “toys” in the side yard and then sort of forget about them…
I can understand this so well. Sorry you had to deal with all of that stress. It is so incredibly frustrating and stressful when appliances and equipment break, especially when there is no clear fix and cost start adding up.
I experienced this on two occasions with ovens. The first time, something broke with the heating element or something like that. I did some research and it seemed like an easy fix. I just had to wait three weeks for the right parts to arrive because the oven was discontinued.
When the parts finally came, I tried to fix it, but it didn’t work. Ugh! I called the helpline and what should have been a very easy fix was not. Then I tried calling an oven repair company, but when they came out to take a look, the cost to fix it on top of their service call was just too much. I was at wits end by that point and ended up buying a new midtier oven. I was so mad that I could have put the cost of the parts and trip fee toward the new oven instead. Maybe I returned the parts, but I can’t remember if they were refundable or not.
Fast forward many years down the road, and I had another oven issue at a different home. The door got jammed and wouldn’t open. I tried getting it open myself after doing some research on how to get it to unlatch but nothing was working. I called an oven repair company again, and they were able to diagnose the issue, but he guided me that his proposed fix was not guaranteed because of some mechanical reason.
The proposed alternative workaround was even more expensive. I felt so frustrated because there was nothing wrong with the oven and stovetop, it was just the daggone door. I didn’t want to rush the decision, so I told him that I would need to think on things before deciding how to proceed.
A day later, I got so mad at the oven I yanked the door so hard that it somehow magically unjammed and opened. Hallelujah! I was still very paranoid that it could accidentally get stuck again, but I was super careful with it going forward. Fortunately I was able to continue using it without any issues after that. So even though I had to pay the service call fee, I was very relieved that I didn’t have to end up paying anymore to fix or replace it.