To my dismay, my beloved hot tub stopped working the other day. It had been fully operational since 2016, but when I went to visit it for a late morning soak, I found its GFCI circuit breaker not working. When I tried to flip it back on, the circuit popped down within three seconds.
I decided to call an electrician I had used before to see what was going on. He texted me back, quoting a $200 service fee for a visit, and I agreed without hesitation. I needed my hot tub operational again ASAP! It is a vital part of my post ideation process.
When the electrician arrived, he confirmed that the electrical was wired correctly. However, he found that the heat pump was dripping water onto an electrical line, which caused the circuit to break. To troubleshoot, we drained and refilled the hot tub to test it, ultimately concluding that we needed a new heat pump. The first visit lasted about 1.5 hours.
Spent More Money And Still Didn’t Work
On the second visit, the electrician brought the new heat pump and installed it. Although the installation and testing only took about an hour and change, I was charged $646 — $253 for the heat pump and $393 for labor.
After filling the hot tub and testing the jets and heat pump, nothing happened. The control panel indicated that the thermostat wasn’t working, which meant the heat pump couldn’t be triggered. At this point, I had paid $843 and still had a non-working hot tub.
I felt so lost. With the inability to generate post ideas in the hot tub, was this the end of Financial Samurai? For the past couple of years, I had thought that artificial intelligence would do this site in. Maybe not!
Cut My Financial Losses or Keep Going?
I had a decision to make. Should I keep paying this electrician with no guarantee of a fix, or reach out to a hot tub repair specialist who charged a $225 service fee, which would go toward further repairs beyond one hour, if needed?
I realized I’d made a mistake by not hiring a hot tub specialist from the start, so I decided to cut my financial losses. The electrician assured me he’d find a way to bypass the code and get everything working, and I shrugged. Deep down, though, I knew he wouldn’t follow through. And he didn’t, a week later.
Tony, the hot tub repair specialist, was incredible. Although it took 10 days to get an appointment, it was worth the wait. As soon as he arrived, he opened the panel and immediately spotted the issue — my previous electrician had misplaced the sensor wire after replacing the heat pump. He also found a loose connector and convinced me to purchase a new $125 filter, something I hadn’t replaced in seven months.
In an hour, Tony had completely fixed the hot tub and charged me $410, including the filter. It was a relief to finally see everything working again. But dang, $410 is a lot of money. How did that happen?
Lessons Learned from Cutting My Financial Losses on Service Repairs
The next day, after the water had warmed to a perfect 101 degrees, I got back into my baby and waited for the ideas to flow. Here are my thoughts on more strategically paying for services.
1. Take your time finding the right person for the job
The main lesson I learned is to not rush to hire just any repairman. Take time to research and hire a specialist who focuses on your specific problem. My first electrician claimed to have worked on hot tubs before, so I trusted him. But he didn’t know the make and model of mine, didn’t test the necessary connectors, and lacked the right parts and tools. Specialists tend to have more experience and a higher likelihood of solving the problem efficiently.
Tony, the specialist, has been repairing hot tubs for over 20 years and has seen all makes and models, making him well-versed in the most common problems. He arrived fully prepared with extra filters and the right tools. Unfortunately, he had just sold his last UV Clear Ray bulb, which filters the water. Otherwise, I would’ve spent another $150 installing it.
2. Keep your emotions in check to avoid overpaying
The more you love a product, the more willing you may be to pay whatever it takes to fix it. This is why colleges can charge so much for tuition and hospitals can demand high fees for healthcare—you love your children and your life more than anything.
When the electrician charged me $646 for the second visit, I quickly paid it through Venmo, hopeful my hot tub would finally be back to normal. Unfortunately, it wasn’t. Red warning lights appeared after he flipped the switch. Still, the electrician told me to “just wait a bit” and assured me the hot tub would start working. Then he disappeared for a week without a solution.
As an analytical person, in retrospect, I was disappointed that I let my emotions take over and simply trusted what the electrician said instead of investigating the blinking red lights myself. All I needed to do was read the control panel, which clearly indicated the thermostat wasn’t working, and do a quick Google search. But I had hope that eventually the hot tub would work again on its own, that the thermostat was just on a delay since the jets worked. I was also feeling the pressure of his $155 hourly charge, which made me want to hurry things up.
3. Ask what happens if the problem cannot be fixed
Once you pay your service person in full, their incentive to complete the job often diminishes, whether the problem is fixed or not. So don’t be in a hurry to pay without fully testing. It’s crucial to discuss what happens if they can’t fix the issue. Will you get a refund? Do they offer any guarantees? At the end of the day, all you want is the problem resolved.
After my hot tub was finally repaired by the second guy, I requested a $200 refund from the first electrician for the initial service fee. To my surprise, he quickly sent it back via Venmo. His boss was in the group text, as it was his boss whom I initially contacted who sent his guy out.
While I still ended up paying $400 for an unsuccessful repair, the first guy at least got and installed a new heat pump, which I’m assuming I needed. I also recognized that the electrician deserved to be compensated for his time and labor. However, had I been more patient and logical, I could have minimized my financial losses and saved some frustration by going with a specialist instead.
4. Learn to maximize profits by putting customers at ease
Tony, the hot tub repair specialist, offered a masterclass in customer service and salesmanship. Although he recognized the problem quickly, he took the time to explain hot tub maintenance to me. The explanation helped filled up time and helped justify charging for his time. He also persuaded me to buy a $125 filter that I could have purchased online for less. His patient approach made me feel confident in his expertise. And why wouldn’t I get a new filter that only needed to be changed every four years instead of every six months, for only twice the cost?
Tony understood my desperation to get the hot tub fixed. By educating me and providing a clear value proposition, he maximized his profits while still keeping me satisfied. It wasn’t until three days after the hot tub was fixed that I looked up the cost of the filter online — just $80. Tony had given me a backward explanation for his higher price, claiming that because he ordered directly from the distributor, he was charged more than retail. At the time, I believed him because I was just so relieved to have the hot tub working again.
As customers, we tend to justify expenses when we understand their purpose. As business owners, helping clients rationalize costs through education can lead to better outcomes for both parties.
When In Doubt, Be Patient And Kind
Being thoughtful and kind goes a long way in business. Studies have shown that doctors who spend more time with their patients are sued far less. Employees who are cordial with colleagues and managers are more likely to receive a generous severance package. Similarly, home sellers who take the time to explain their property’s systems and quirks are less likely to face legal issues if problems arise after the sale.
Taking a moment to be considerate can make a meaningful difference. I’m going to remind myself of this tip the next time I receive an insulting comment after writing an innocuous post.
Maintenance Is the Price of Having Nice Things
Ultimately, I spent $1,043 to fix my $16,000 hot tub. I might have saved $393 had I gone straight to the hot tub expert, although it’s possible he would have charged me the same amount to install a new heater pump — a part I’m not entirely sure was necessary in hindsight.
Thankfully, I was prepared to spend up to $5,000 to repair it and even considered buying a new one for $20,000. That’s how much I valued the joy and purpose the hot tub brought me. However, after the first electrician’s second visit, I had no confidence that spending any more money would solve the issue since he clearly wasn’t an expert. So I cut my financial losses.
An Inexpensive Lesson Learned
I’ll chalk up the possible extra $393 in labor costs to a financial lesson about paying for service. If you find yourself in a similar situation, take the time to find the right expert, keep your emotions in check, and assess the true value of the service before making a decision. Don’t be afraid to do some research on the spot after being quoted a price. Take your time. Labor is expensive these days — either hire the best from the start, build a relationship with someone you trust, or learn to handle repairs yourself.
This latest maintenance issue is a reminder of why I’m considering selling at least one more physical rental property to simplify my life. Dealing with unexpected repairs is a constant headache — something always seems to break. At this stage, I’m just not as willing to handle these random fixes as often as I used to.
Have you ever faced a situation where you spent a significant amount of money trying to fix something and had to decide whether to cut your financial losses or keep going? How did you make that choice? Have you ever tried negotiating a flat rate for a repair instead of paying an hourly rate? I’d love to hear your experiences.
Suggestions For Better Financial Management
If you’re looking to get a better handle on your finances, consider trying Boldin. Boldin (formerly NewRetirement) was designed from the ground up to help you build more wealth and plan for a secure retirement. With its comprehensive financial planning tools, Boldin allows you to project your future net worth, analyze your investment strategies, and adjust your plans based on changing circumstances. It’s especially helpful for those who want to optimize their retirement accounts, minimize taxes, and confidently plan for major life expenses.
Another excellent budgeting and cash flow tool is ProjectionLab. This platform excels at running various “what-if” scenarios to help you make more informed financial decisions. Whether you’re considering an early retirement, a major home purchase, or exploring different investment strategies, ProjectionLab enables you to visualize the potential outcomes and adjust your plans accordingly. It also offers a user-friendly interface, detailed graphs, and in-depth analytics, making complex financial planning more accessible.
By integrating financial tools into your financial routine, you can gain greater clarity and confidence in reaching your financial goals. I’ve used both tools before and both are affiliate partners of Financial Samurai.
To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. Sam is the author Millionaire Milestones: Simple Steps To Seven Figures. Pick up a copy if you want to build more wealth and live free.
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