Last week my wife and I decided that it was finally time for a new hot water heater. Our current unit is over 20 years old, and though it produces hot water, it is fast to run out (especially in the winter). We’ve lived in this house now for about two years, so the existing unit was already here when we bought the house. Thanks to $400 in Home Depot gift cards that we had accumulated from credit card sign-up bonuses (thanks Citibank!), we decided to purchase the heater and the installation service from Home Depot. And that, my friends, is where our problems began!
The Purchase
At Home Depot, we selected a 40-gallon, natural-gas unit and opted to purchase the installation service. Thanks to the gift cards, we only had to spend just under $200. Here we encountered the first problem: the hidden fees in the installation service.
Here’s the scenario: if you purchase water heater installation service from Home Depot, they will sub-contract the job out to a local plumber. In my town, the advertised price for installation reads, “starting at $230.” However, once you reach the Home Depot counter to pay for the installation, they WILL add at least $70 in mandatory fees! For EVERY installation, they WILL add:
- $35 for a water inlet shutoff valve (which is refundable only if the sub-contracted plumber tells you he doesn’t need it), and
- $35 (or more) for a “permit” that the plumber needs for each installation
My question is, if they require an additional $70 for EVERY installation, why not advertise the starting price for installation as $300 rather than $230? Or, if they insist on using their skewed system, why not advertise the installation service as “starting at $10″ (plus $290 in mandatory fees)?
Despite the sneaky hidden fees, we begrudgingly went ahead with our purchase. Hey, we had to use those gift cards somehow. 
The um… Installation?
Despite Home Depot’s promise of “same-day installation service” (which is an outright lie), it took several days for the installer to arrive with the hot-water heater. He was a nice, down-to business kind of guy, but as soon as he saw our existing water heater, he told us point-blank that there was no way he could possibly install the new heater to regulation code. The problem, it seems, is that there is not a drip pan underneath our existing heater (which is 20 years old), and that there is not enough room to add a typical, 27-inch drip pan and still be able to close the door to the room. Whoever designed the room (in the 1960s) must have been tripping on acid, since there are numerous layout issues that now prevent the proper installation of a hot-water heater.
The installer was a nice, jovial guy. He apologized and told us to go to Home Depot and request a refund. Then he left. Oh well. Replacing our water heater is going to be MUCH more difficult than we originally planned, but it makes sense now why the current unit is so old – the former owners simply did not want to deal with it. Now we are stuck with the problem, and the home inspector did not notice it when we bought the house.
We’ll have to deal with it later. In the meantime, let’s try to get our refund from Home Depot, shall we?
The Fight for a Refund
A few hours after the installer left, I paid a visit to the dreaded Home Depot. Paperwork in hand, I marched to the counter, explained my story to the orange-aproned cashier, and waited patiently while she consulted a higher power.
A few minutes later she returned and said, “We can give you a refund, minus $75 for the installation service.” Utterly confused, I demanded to know why I could not receive a full refund. Here is the explanation I received:
We (Home Depot) have to pay the installer a “trip” fee for showing up, whether or not he completes any service, so we pass the fee on to you (the customer).”
Trying to keep my cool, I let the orange-plaid cashier know exactly how much that policy stank. Why should I get sandbagged with a hefty fee because the installer could not perform the service? Why isn’t this notice written anywhere on my documentation? And just what is this obsession with the color orange anyway?
After my tirade, the orange-embroidered cashier said, “Would you like me to call a manager?” Yes, I would.
Amy, the smiling manager, arrived and attempted to enlighten me on what a “trip” fee is and why I should just shut up and pay it. Naturally, I embarked on another discourse on why saddling me with a $75 fee is completely unfair. Had I chosen to return the unit, I would gladly eat the fee, but since I would love to have the unit (and the installer CAN’T install it), Home Depot should eat whatever extra fee they have suddenly conjured.
The battle raged for several minutes, neither of us gaining any ground. In the end, Amy (ever-smiling) negotiated a treaty. “What if we split the fee in half, $37.50 each?” she inquired. Ready to get this mess over with, I accepted. Had I planted my feet and really made a scene, I probably could have gotten her to wave the entire fee, but I didn’t. Maybe it was her smile, or maybe the overpowering orange influence was curbing my hostility.
The Aftermath
The charge on my credit card has been reversed, and my gift cards have been returned as store credit (minus $37.50 of course). I’m still without a new hot water heater, with no easy way in sight to have a new one installed. While I ponder my options, I cross my fingers with hope that our ancient water heater will keep working happily.
Is there a moral to my story? Yes, dear reader. Do not purchase any type of installation service from Home Depot. They will no longer receive any business from me, at least not until they acknowledge their “hidden” installation fees. They must also provide written AND verbal documentation that refunds on services will require a $75 fee whether or not the installer is able to do anything. The current method of springing fees on the customer at the last minute without prior notification is not acceptable.
Frank Blake, are you reading this?
I had a very similar experience with getting a ceiling fan installed from Home Depot. It never got installed by Home Depot. Now I need a water heater and I stopped at Home Depot (forgetting my experience with the fan) I went to the service desk but no one could even answer a few questions for me. Same Day Service is not even available for questions! I went home and began calling other places. Several want a service fee just to come out with no info on costs of replacments. I once had a bad experience (with the same fan). An electician came out collected a $50.00 fee to get to the door. then told me it would be $700 dollars to install my fan! The switch and ceiling prep had already been done! I said NO of course. I guess exhorbitant fees must work a lot of times since you have all ready paid the 50.00 to get them out there. I have finally found a good water heater service, I think. I got a definite price, delivered, installed and the old one hauled away. And they gave me an instant appointment just 2 days out. I’ll let you know. Yep, Never have Home Depot install anything.
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Sorry to hear about your troubles, Kathleen. Home Depot’s “Same Day Service” is a joke indeed.
Glad you eventually found good service for your water heater. I hope I’m able to do the same.
First – let me suggest you look at a bit more pricey but probably your best solution because of code problems – a “tank-less”, instant hot-water heater; the in-line type. I know they can be more expensive but by the time you deal with code, you’ll wish you’d gone the tank-less route.
Okay, here goes on the HD incident….
I) Home Depot’s promise of “same-day installation service” – Is it in writing? Does it say, “In the event we cannot blah blah” or any such escape clause? Or what they will or won’t do?
I’d have built my fortress on that alone and demanded a complete refund; they’d also have to pick up their water heater too, no freebies from me. If they still didn’t get it…
I’d say “Hey, how about I come over to your house, turn your water heater off and you hand me $300. Following me so far Ms. Manager? Okay – now, here’s the deal – thanks for the money by the way… now, I’ll be here tomorrow to turn it back on – but, not really… see, I’m telling you this but I really won’t be here for two, maybe three days… just don’t know… our schedule’s really busy… Oh what? I ought to have told you that before you gave me your money? Did you tell me it would be three days?”
It could have been a great show – especially since you don’t plan to return; heck, you could have made local news! Media loves the little guy being squashed… But since that didn’t happen…
II) You paid $70 for the valve and the plumber permit – right? So let’s say your total expense at this point was $300; $230 plus the $70. It can’t be done, plumber goes away, you return the hot water heater and expect your $300 back, right?
But they say no, we want $70 for the trip?
Did you look before you leapt? Did their contract state anything about a trip fee?
Because it seems to me, the $75 must already be built into the price you paid for the whole shebang; otherwise, how and when would they ever get the $75 from you?
At most, you already paid them $70. I’d have returned the valve and said, “No, you keep nothing – the same as me, who’s been waiting for FOUR DAYS NOW TO GET A NEW HOT WATER HEATER… what? Oh, I’m sorry folks… you go right ahead and buy yourself a water heater… hope you aren’t in a hurry because… What? Oh, a full refund? Why thank you.
I am not recommending inane or insane behavior; my suggestion would be to simply express the thought in ways they could understand or relate to; then I’d be on the phone to the district representative, etc, etc.. until I got my $37.50 back.
I may have misread your post – but it seems to me you walked away with less than you started with for nothing except a valve.
Richard – Thanks for the suggestion about the tankless heater. We asked the installer about it when he told us about the code violation, but the price of installing it in our current house is not worth it simply because we will only be here for a couple more years. Understandably, we want to be able to enjoy a tankless heater if we buy one!
I’m not sure if the “trip” fee is mentioned in the fine print at Home Depot. I read a lot of fine print, but did not come across it if it is mentioned. The possibility of an added $70 fee seems important enough that it should be both in writing and verbally explained to the customer before the purchase is complete.
Of course, now I know to be on the lookout for such things, and I will be vigilant in the future.
I bought 2 fans from Home Depot. They want a very very high feed to install it.
I got a local guy off craig’s list to do it quickly and at a good price. Never use
Home Depot to install anything. Just my opinion.
The problem with a tankless is the btu’s. What they don’t tell you is there is a very good possibility that you will have to upsize your gasline in order to make the tankless work. Are you on a well? Colder water makes the gpm go down as well, especially in the winter. The flue may have to be rerun in stainless steel. Your $1000 w.h. has probably jumped to $3500. Do they really last 20 years? Depends on your water. Since this w.h. is not leaking after 20 years, but it doesn’t last very long. Sediment build up in the bottom of the tank is acting like insulation, requiring more energy to heat it. If you have an outside wall for the w.h., the pan drain could go right out that wall and put a 90 on it so it won’t hurt anyone. At any rate, it sounds like you’ll need to do a little drywall patching in order to make another w.h. go in the same place. Is there a possibility of a different location for the w.h., closer to the gas meter and vent accessible?
Good luck
This is my story of having home depot to install the water heater:
I purchased 40 gallon natural gas water heater from home depot to replace my existing old one which is located on the ground floor. Although Home Depot only mentioned about $285 for the installation and $55 for the permit, when the guy called me, he told me that if I do not have bar valve, it will cost $130 to install; Additional $170 will be charged if I don’t have water pressure reducer. He will charge $85 dollars for any alteration on the gas pipe. For putting up the exhaust vent the cost is $320. So the total installation cost is $1,045! Outrageous!
So I spent $200 to prepare the bar valve and water pressure regulator. I also prepared the exhaust vent pipe. The guy insists charging a fee of $320 to put it on. The vent pipe is 1.5 ft long with 2 turns into the chimney. To put it there probably will take 2 minutes time. We refuse to pay another $320 for the vent. So he left without installing the vent. But we could not avoid the 85 alternation fee for the gas pipe as the position is slightly different from the old one.
Hello, and sorry for your bad experiences with the Home Depot installations. I have seen their website explaining why it is important to choose their services and not go with an independent contractor. They claim to screen the contractors they sub out their work to. This is actually an easy enough process for the homeowner to do on his/her own. Just ask for a copy of the independent contractors license and insurance. Or you may call your local building department and ask if the contractor is registered with the city/ county/ state where you live. If the contractor is registerd then you know the building dept. has already “screened” them. As a licensed and fully insured electrical contractor I have been asked many questions from homeowners regarding trip charges and permit fees. The unfortunate truth is that it costs a pretty penny to run even a small licensed shop. The costs are astronomical. Unfortunately the contractor must charge to compensate for the costs of being able to legally offer his services. Paying an employee for his time to drive a big truck loaded with thousands of dollars in parts costs money. If the plumber spent the time to come out to your house in good faith only to find that the house is not up to code or that it is going to take a lot of labor and materials to bring your house up to code is not his fault. It is however the fault of Home Depot to tell you the cost and charge you beforehand for a job that is unseen. How do they know what’s involved? As for the permit charge this is your building departments fee to inspect the work and approve that it has satisfied code requirements. In the future, save yourself the extra costs that Home Depot charges and check on the legal status of the contractor yourself by calling the local building dept.
BTW, the $700.00 ceiling fan installation sounds real expensive if the fan rated box and wiring were already in place and it was a normal height ceiling. Our charge is a $75.00 service fee and $150.00 per fan in that situation.
People never cease to amaze me. YOU and YOUR house are the ones that have the unusual installation requirements that YOU didn’t mention (or maybe didn’t realize)and you expect the Plumbing company to send their truck, use fuel and pay their employee to come to your house to discover this for FREE? You obviously didn’t want to pay the extra above the standard installtion to get this installed so everyone that already spent their money at this point is supposed to walk away uncompensated for their time and expense? What do you do for a living? I’ve got something for you to do at my house, come on over and have a look for me. Then the nerve to bitch about em on the internet. I have my own special list hanging on my office wall just for customers like you. Sorry Mr. Rectum but we are booked solid. BUH BYE.
Wow, Doug. You missed the point entirely! Congrats!
OK, Doug. Let’s say you walk into a restaurant, sit down, and the waiter hands you a menu. You look it over, decide you don’t like what’s on it, and leave. Do you tip the waiter? If not, I guess now YOU are the rectum.
QOUTE:”The current method of springing fees on the customer at the last minute without prior notification is not acceptable.”
I find your statement rather funny as the plumber I would have to change your statement to read “Your current method of springing unusual and difficult istallation conditions at the last minute without compensation is not acceptable”
Even though Doug was a little I harsh, I have to agree with him. I don’t understand why people think that someone running a business is suppose to perform services for free? I really don’t get it! I see this all the time and I feel that contractors are unfairly scrutinized.
Why don’t you tell your dentist after he is done fixing your teeth that you are not paying? Or better yet next time you go to resturant tell the waiter your not paying for the ridiculously priced or coke or there 20% tip?
Running a construction business is so expensive people have no idea. Just driving over to someone’s house is our time, the cost of gas, the cost of insurance, the cost of our expertise, the cost of license fess, continuing education fees, and advertising, and also last but not least this is how we put food on the table and pay our bills!!!
When you go to work do you tell your employer don’t pay me for this or that? Or do you just expect to get paid for your 40hrs? Well why don’t contractors deserve the same thing? Its really disrespectful if you ask me and I frankly am tired of the abuse and attitude that customers have toward contractors, its skill and a one that takes years of putting up with people’s with bad attitudes, you try this job for a while and see how long you put up with being jerked around by customers and see how much you charge.
One thing customers can’t seem to get is that its YOUR HOUSE, its not our property we are not going to pay to improve your property and why should we? Are we going to benefit from improvements to your home? When you go to sell your house are you going to call the contractor that worked on it and give him a percentage If you don’t like the codes then call your town hall and tell them to stop implementing state codes and tell them to stop requiring contractors to adhere to them or get fined, then maybe you will see a drop in price.
Okay, it seems I’m going to have to continue commenting on this nearly three-year old post.
Both you and Doug have missed the point. You’re focusing on the contractor and his fee. Let me be clear – I have no problem with a contractor getting paid for a trip out to a house, even if he can’t do any work. For the record, I did hire a contractor to handle the installation, and his work was worth every penny that I paid him.
My problem is with Home Depot and their lack of disclosure. As I wrote above, their fee for functioning as middleman has a compulsory charge of $70 beyond what they quote. That’s deceptive. Also, at no point did they disclose that if an item is unable to be installed, they will charge the customer a mandatory delivery fee. Again, I have no problem with the fee itself, I just want to know about it beforehand! These things don’t take long to disclose, and could easily have been something for me to read and initial in the paperwork when buying the installation. It wasn’t, and that’s the real problem.
To use your own analogy, what if you got a quote for some dental work, had the work done, and then the dentist charged you a mandatory extra $70 fee for no extra work done? It’s deceptive, and it’s a breach of trust. Had the dentist explained a legitimate purpose for the fee beforehand, that would have been a different story.
Re-read my original post. Again, the existence of the trip fee is not the problem. Home Depot’s deceptiveness is.
I hope you’re joking about that. I think the state codes do far more good than harm, and I sleep better at night knowing my residence has safety codes. Without state codes, there would be far too many lazy contractors taking dangerous shortcuts that could put people’s lives in danger.
we just had Home Depot install a 50 gallon (12yr) water heater in our home. the actual price of the tank was $379 but the bill came to $1450 – how?
earthquake straps, (needed to install some wood foundation to strap tank to) drainage Pan.. then a “required” expansion tank + install, recycle of old tank , replacement of water lines to/from tank as not per code etc.
did we get ripped off? from what I’m reading this is rather typical the 3rd party contractor Home depot quoted a base install (including tank)of $850
this guy is nuts!! anytime you have a repair man come to the house, he charges a fee for his time, even if the work can not be done. it’s the same for a local repair man or a major company. sounds like their experience was a very good one; excellent customer service by the sales staff, assistant manager, and plumber.
I had the exact same thing happen to me. I got the $75 back by threatening to do a charge-back with my credit card company. To those who don’t get what Doug’s problem is, companies have to disclose fees in advance. It’s a basic principle of contract law (“meeting of the minds”), which you don’t have to be a lawyer to understand.