normal deposit for air con install?

Discussion in 'Repairs & Maintenance' started by abc_123, 22nd Feb, 2020.

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  1. abc_123

    abc_123 Well-Known Member

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    I received quotes to replace a reverse cycle split system or repair it, I chose to replace it because the repair was too expensive considering the price of replacement. They wanted a 30% deposit non refundable for either the repair (which involved ordering parts) or the replacement. I emailed and let them know I wanted to go ahead with the replacement but were they able to give me a installation date before I paid a non refundable deposit (as there are such long delays getting air conditioning guys out at this time of year). And received absolute silence in response.

    I wonder if the 30% deposit is normal and they perhaps thought I was being an unreasonable customer that they didn't want to deal with by asking for a date first? This property is in the ACT but I had one done in Brisbane a little while ago and they didn't require a deposit and I don't recall having to pay one when I've installed air conditioners in the past or at least not that much.

    Or perhaps they could be a bit shonky because they wanted the deposit via bank transfer yet they were happy to take credit card for the initial diagnosis and quotes which might be because they have had charge backs due to taking deposit and then not delivering?

    I have also had issues where air con guys (not these same ones) have been called out under warranty and won't even come to look at it for months because they have so much other paid work on... thus requiring paying for it to be fixed myself to meet landlord obligations. So I don't trust them and feel like once they have your money they won't come out until it is off season and they have no work...

    I am wondering if it is worth getting another company out to quote to replace it (which would probably involve another few weeks wait for them to come out) or if they are all probably going to have similar policies?
     
  2. wylie

    wylie Moderator Staff Member

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    Sounds a bit dodgy to me. I've never been asked to pay a deposit for any air-con I've installed over many years.
     
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  3. Marg4000

    Marg4000 Well-Known Member

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    We recently replaced an air con.
    Our repaired charges a 50% deposit before he buys the unit and fits it.
    Once we paid, the unit was installed the next day.
    We have used this family company before and trust him.

    He said he is sick of being out of pocket after people instruct him to fit a new air con then say they can’t pay till next week or longer. He then spends weeks chasing up payment. In one case he still hasn’t received payment after several months.
     
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  4. wylie

    wylie Moderator Staff Member

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    I guess I should add, after reading the post by @Marg4000 that we've used the same air-conditioning guy for a number of years, and now have moved to a new guy because our electrician is working with a new one. We pay bills the day they hit my email, so I guess once you've paid quickly a few times, they know that we will be fast payers.

    I cannot imagine how tradies manage their cashflow when some people take their sweet time to pay, whilst sitting in the nice cool house in air-con they've not paid for.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    How much deposit is required based on the ACT Fair Trading website?
     
  6. abc_123

    abc_123 Well-Known Member

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    Thanks scott, I did have a look for this, the ACT fair trading site is very light on information and doesn't seem to contain any information about this. Google hasn't been at all helpful either. In other states the deposit is often regulated to 10% but doesn't necessarily apply to smaller jobs under a few thousand or so which this is.
     
  7. James90

    James90 Well-Known Member

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    Not sure about ACT, the QBCC in Queensland recommend 20% for jobs under $3300 (with a few exceptions)
    I don’t blame them though, I’m owed 2.3k from a Ac I installed last April, the amount of time I’ve wasted with calls, emails, debt collectors etc
     
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  8. Archaon

    Archaon Well-Known Member

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    Should be able to get access to remove the air-con, it's still yours after all.
     
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  9. Something_Wrong

    Something_Wrong Well-Known Member

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    Frost A/C charged me a 10% deposit on the $16,000 job, never dealt with them before but had great service.
    Our local guy charges 20% as he has said people delay paying and it leaves him short.
     
  10. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Each state Fair Trading has regulations concerning deposits and contracts. Contracts should specificy what happens ie is it refundable ? When ? etc.
    Consumers should be wary of contracts which seek high upfront deposits as it may limit their consumer rights for remedy. eg Agreeing to pay 100% on the day may be prudent v's a high deposit.

    I cant imagine any tradie with a brain allowing a AC to be delivered to site prior to install and making sure payment has been made on attending.

    NSW :

    Myth:
    'I've changed my mind, but I can still get my deposit back.'

    Fact:
    • It depends. When you place a deposit on an item (and sign a statement confirming your deposit), you enter a contract. This means you could be entering into a binding agreement to proceed with the transaction.
    • A deposit compensates the business for the time and expense devoted to the transaction. If you change your mind, the business may be entitled to keep all or part of your deposit. The actual amount the business is allowed to keep depends on the circumstances. It should not be so high as to constitute a penalty.
    • Many businesses will return your deposit as a gesture of goodwill, but this is not guaranteed.
     
    Last edited: 25th Feb, 2020
  11. FredBear

    FredBear Well-Known Member

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    In my case (June last year) I paid 20% deposit on $8k air-con unit in Sydney. I thought that was fair enough. Installation was done following week.
     
  12. abc_123

    abc_123 Well-Known Member

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    Well he's finally got back to me and refuses to provide an install date (or estimated date or timeframe) until deposit is received. Yeah, no thanks.
     
  13. marmot

    marmot Well-Known Member

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    If he is flat out with work ,and he is probably a bit over dealing with people that expect him to order(and probably pay) for an air con system .
    You either want one or you dont and many have the attitude of just get back to me when you want one and stop wasting my time. Just Sayin
    We bought a brand new one from the Good Guys a few years ago with installation included, just paid in full and 4 days later it was fitted.
    Many tradies that have been in the job for a few years get burnt a few times dealing with people that really drag their feet with payment.