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.
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.
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.
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
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:
Provider B:
Provider C:
Downtime Losses:
Using our total cost of repair equation from above, here’s what you’ll actually pay for each provider:
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.
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:
Collecting these details upfront helps you make fair comparisons before committing to a single quote.
Every time you solicit a forklift service quote, request these eight vital data points in writing:
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