Free

A profitable fix at GE…

images-11.jpegLast week, the freezer here at footnoted.org world headquarters stopped defrosting, leaving puddles of water on the kitchen floor. Rather than wasting time trying to find the manual, I went on to General Electric’s (GE) website where I found this helpful description of the problem. Though I’m a big DIY-er, the site clearly said that my model — a bottom freezer — required a service call. A few clicks later and I had scheduled one for the following day.

When Chris the technician showed up on Monday, he quickly confirmed that the problem was a clog and then told me it would take him about 15 minutes and $166 to fix (as opposed to the $79.95 I was led to believe it would cost from the site). Given my experience, it’s no surprise that services revenues were up 12% according to the company’s second quarter earnings that came out on Friday. Granted, it takes Chris time to drive from call to call and not all of the calls are probably as simple as mine. But $166 for a 15 minute call that probably cost GE under $50 to provide is a pretty attractive business model.