AURORA, Colo. — When Paula McMahon’s water heater wasn’t working, she panicked and decided to call a name she knew. She ended up with a new 40-gallon water heater bill for nearly $13,000 and not a lot of answers about why it cost so much.
McMahon called Steve On Your Side after months of fighting with Applewood Plumbing, Heating and Electric over the large bill.
McMahon said the technician from Applewood came right over to her house when she called back in March and told Paula and her husband Murray that the unit needed to be replaced. The couple said the technician told them only one model would fit in the area where the previous water heater sat and walked them through the job using a tablet. He said the installation would cost nearly $13,000.
McMahon said the technician assured her there was no model that would be cheaper.
“We finally said, well, if you say we can't get another one then I guess we'll have to get it and figure out how we're gonna pay $13,000,” she said.
She then sent a text message to her daughter, Debbie LeDoux. LeDoux couldn’t believe her ears when her mother told her the price.
“I was completely shocked,” LeDoux said.
LeDoux said she asked her mother for the invoice from Applewood. The bill didn’t include a breakdown of the cost, but it did include a model number for the Bradford White water heater. She looked it up online.
“And it's probably about $1,800 to $2,200 So, you know, that's almost $11,000 of labor and it was a basic install,” LeDoux said.
She said she tried reaching out to Applewood on her mother’s behalf. One person on the line told her they couldn’t provide an itemized receipt. When a manager called her back, she tried to argue the charge, but said the manager disconnected the phone call.
“I knew trying to make a payment on a $13,000 credit card with a 27-29% interest rate is going to be impossible for somebody on a fixed income to pay off,” she said.
So Paula contacted Consumer Investigator Steve Staeger.
Steve On Your Side looked up the same water heater online and found similar prices. We reached out to Applewood to try to get a response about why the labor cost so much.
Applewood issued the following statement on the issue:
Applewood Plumbing Heating & Electric has maintained high standards in service and customer interactions for more than 50 years. Our costs include more than parts and labor – we have fully stocked trucks, an on-demand warehouse, a coordinated dispatch system and other resources to ensure top-level home repair. We provide detailed descriptions of proposed work in advance, and work starts only with customer authorization. Our pricing is consistent for all, offering same-day service, certified and licensed technicians, and extended hours without overtime charges. Applewood has a long history of integrity and is always open to address customer concerns.
Days after issuing that statement, LeDoux said the president of the company called her, apologized and offered her a full refund. She said she told him her parents didn’t want the total amount refunded – they only wanted to pay what they felt was a fair price - $5,000. He agreed and refunded nearly $8,000.
“This all has been resolved in less than a week,” LeDoux said. “It's nice to know that there is Steve on Your Side.”
What to do if your water heater needs repair or replacement
“We find that company to company there are often big price differences for the same kind of work,” said Jamie Lettis with Consumers’ Checkbook, a national nonprofit that advocates for consumers and researches prices for work like plumbing.
Lettis said their researchers have looked into pricing for plumbing services and supplies for more than 40 years. Their researchers call hundreds of plumbers across the country and ask for different models of water heaters and the fees for installation.
She said a few years ago when their research was published, the average bill to replace a water heater sat around $1,500 to $2,000. She said recently, plumbers have reported prices anywhere from $1,800 to $3,000 depending on the size of the water heater.
“You need to shop around and you need to call at least three companies and tell them what you’re looking for and ask them how much the job will cost,” Lettis said.
Lettis said even if you’ve known and trusted a plumber for years, a consumer should still get several quotes to ensure they’re getting the best prices.
Meghan Compton with Denver’s chapter of the Better Business Bureau recommends these tips. She said consumers can research ratings and complaints about specific companies at the Better Business Bureau’s website.
“Often the companies that do the best work and have the fairest prices are not the ones that you necessarily know about,” Lettis said. “There are certain companies that you know their website, you know their jingle, you know what their spokesperson looks like, because his face is on the side of the truck. The best companies don't have to advertise like that because their phone is ringing off the hook.”
In a follow-up statement to Steve On Your Side, Applewood said the company identified several communication gaps and issues between various parties involved:
We pride ourselves on ensuring consistent pricing for everyone no matter their status or timing of the repair. If all things are the same, then yes, the pricing would be consistent. As you might guess, each job has many different scenarios and variables unique to each customer need/repair. For water heaters, the size, type, code compliance and warranty are some of those items that determine the costs associated with the overall repair. These considerations along with the other costs associated with doing business (fully stocked trucks, on-demand warehouse, same day service, extended hours and highly qualified, licensed technicians) are part of our pricing, which is done by the job.
Have a tip for Steve On Your Side? Contact Consumer Investigator Steve Staeger
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