Boiler cover

[dsmart]

A thread about getting customers finance got me thinking.

I've seen quite a few companies about here offering boiler cover for a monthly fee £7.99 etc. These are all smaller firms. How are they managing to offer this sort of cover and not lose money on parts etc baffles me?

 

[townfanjon]

I am guessing, but its a bit of a percentage game , they win some and loose some, and hopefully they come out in front

 

[dsmart]

Surely not ? that is madness if that's what they are doing

 

[townfanjon]

Yes but surely thats how the boiler manufacturers work on the fixed price repair deal, they fix a boiler it might cost a tenner the next one may cost hundreds

 

[lame plumber]

boiler manufacturers pay peanuts for parts so costs arent an issue for them, how small firms cope puzzles me

 

[Paulplumb]

It's all to do with the terms and conditions.

Customer: er yes hello. My boiler has broken down I was wondering if you could fix it please?

Boiler cover supplier: Oh dear I am everso sorry about that. Unfortunately today has a "y" in it so you're not covered.

 

[Millsy 82]

It's all about numbers, being picky and get out clauses.

They won't take boilers over x years old, won't take on certain makes/ models and as soon as it goes over a certain price it is beyond repair. Then they charge a fortune to replace it.

Or at least that's how a company I used to work for did it.

 

[dsmart]

Aye Millsy that's what I thought