The Forklift Repair Paradox: Cheap Forklift Service Quotes Are the Most Expensive

Editor’s Note: The prices and values listed in the examples found in this article are for educational purposes only and may not reflect actual pricing.

When you book a rental car, the daily rate is only part of the price.

You log on to the rental company’s site and find a list of bargain-priced rates. Convinced you’ve found a deal, you click to finalize the reservation only to encounter a list of additional fees. That’s not even the full price. You arrive at the desk to collect your keys. Suddenly, the clerk adds on additional insurance, a convenience fee for the toll roads, and a surcharge for gas. In the end, your bargain rental isn’t a bargain anymore.

Accepting the wrong forklift service quote drains your budget just as quickly.

Often, service providers touting low-cost labor make up the difference in the line items you don’t see upfront. There are many honest forklift service providers, but that can make it all the more difficult to spot price lures.

Read on to learn how to avoid the repair quote paradox and find the best forklift maintenance deals.

Forklift Repair Labor Rates Can Mislead

Labor cost comparisons leverage a marketing concept called anchoring bias.

Anchoring bias leans on a quirk of human psychology that influences our ability to make objective comparisons. First, you show a prospective client one price labeled “our competitor’s price.” Then, you follow up with a lower price marked as “our price.” Research shows most consumers will think they are getting a deal, even if they end up paying more.

Some forklift service providers use anchoring bias to attract clients.

They aren’t being nefarious. It’s a standard marketing practice worldwide. However, it narrows the decision to a single line item.

To make a true apples-to-apples comparison between providers, you must calculate the total forklift repair cost.

Calculating the Total Cost of Forklift Repair

Labor rates are only one aspect of forklift repair.

Labor pays for the technician’s time. It doesn’t cover other expenses, such as replacement parts and additional fees. Those additions can make all the difference.

For example, you might assume that all service providers charge about the same price for parts. Yet, part prices can vary wildly depending on the provider’s relationship with their vendor and their markup.

Downtime is another expense.

Quote A might be less expensive than Quote B. However, if Service Provider B can complete the repair a week before Provider A, you reduce downtime losses by choosing Provider B. Consequently, Quote B might offer the lower total repair cost.

Use the following equation as a foundation for calculating the total cost of repair:

Total cost of repair = labor hours billed + parts + fees + downtime impact

Forklift Maintenance by the Numbers

How can the lower-priced quote end up costing more?

It can be tricky to wrap your head around that one, but it’s a lot easier to understand with an example. So, let’s use some theoretical numbers to make this explanation more concrete. We’ll compare quotes from three fictional providers using the information below:

Provider A:

• 6 hours of labor at $200 per hour
• $300 for parts
• $75 for additional fees
• 2 days of downtime

Provider B:

• 6 hours of labor at $150 per hour
• $750 for parts
• $100 for additional fees
• 2.5 days of downtime

Provider C:

• 8 hours of labor at $210 per hour
• $800 for parts
• $175 for additional fees
• 1 day of downtime

Downtime Losses:

• $5,000 per day

Using our total cost of repair equation from above, here’s what you’ll actually pay for each provider:

• Provider A. $1,200 (labor) + $300 (parts) + $75 (fees) = $1,575 (quote price) + $10,000 (downtime losses) = $11,575 (total cost)
• Provider B. $900 (labor) + $750 (parts) + $100 (fees) = $1,750 (quote price) + $12,500 (downtime losses) = $14,250 (total cost)
• Provider C. $1,680 (labor) + $800 (parts) + $175 (fees) = $2,655 (quote price) + $5,000 (downtime losses) = $7,655 (total cost)

If we based our decision solely on labor, Provider B would be the best choice. When we consider parts and fees, Provider A is the clear choice. However, downtime impact makes Provider C the best deal even though they submitted the most expensive quote.

Without comparing the total repair cost, we might have paid almost twice as much.

Comparing Forklift Service Quotes

In our previous example, we lumped several expenses into a single line item for clarity.

Calculating the total forklift repair cost in the real world follows the same principle. However, you may need to request additional details to gather all the information needed to make an informed decision. Whenever you solicit a service quote, request the following in writing:

• Estimated labor hours. Ask for the estimated labor hours or the not-to-exceed range. Without this, labor rates are meaningless.
• Parts list and pricing. Request an itemized list of required parts and their pricing. An itemized list tells you which parts are included and which will cost extra.
• Service call and trip charges. Ask about service call fees and trip charges. Many providers charge an additional fee for each technician visit.
• Additional fees. Some providers may include additional charges for certain services. These might include environmental, shop, or supply fees. Ask for a quote that lists all additional fees.
• Response time and scheduling. Quotes won’t include downtime costs. However, you can estimate your downtime losses by verifying technician response times and scheduling windows. A rapid response time could outweigh other costs.
• Warranty details. Quality service providers back up their work with warranties on parts and labor. Ask for warranty terms when you request the quote. An extensive warranty might be worth the additional expense.
• Planned maintenance inclusions. Maintenance plans don’t all cover the same services. Some are comprehensive while others are essentially an oil change. When requesting planned maintenance quotes, request an itemized list of inclusions.

Collecting these details upfront helps you make fair comparisons before committing to a single quote.

Fair Comparisons Every Time

The only way to find the best forklift repair and maintenance plans is to compare the total cost of repair.

You shouldn’t have to chase down that price. That’s why we believe in comprehensive quotes. When you request a forklift service quote from The Lilly Company, you receive the most accurate quote we can offer. No hidden fees. No secret exclusions. No surprise add-ons. Just transparency.

Don’t settle for partial quotes. Contact us for a maintenance plan quote today.

To learn more about service plans or mobile forklift repair, contact us online or visit one of our locations:

Arkansas - Jonesboro
Alabama - Birmingham, Dothan, Irondale, Madison, Mobile, and Montgomery
Georgia - Atlanta
Mississippi - Belden, Tupelo, and Richland
Tennessee - Jackson, Memphis, Knoxville, and Kingsport

Further Reading
How To Calculate the True Cost of Downtime
A Beginner’s Guide to Forklift Maintenance Agreements
Stop Shopping Around! Single Solution Providers Save You Time and Money