In Columbia, South Carolina, homeowners are experiencing the effects of a growing trend in the home services industry: private equity-backed acquisitions of local contractors. These takeovers often lead to significant changes in pricing and service quality, leaving customers with higher bills and a confusing array of upsell options.
Two notable examples in our community are the acquisitions of Meetze Plumbing and Love Plumbing, Air & Electrical by TurnPoint Services, a company backed by OMERS Private Equity. Once trusted, locally owned contractors, these businesses are now part of a larger corporate structure that prioritizes profit margins over personalized service.
This shift raises concerns about the future of home services in Columbia. Here’s what homeowners need to know.
What Happened with Meetze Plumbing and Love Plumbing, Air & Electrical?
In March 2020, Meetze Plumbing was acquired by TurnPoint Services. Similarly, Love Plumbing, Air & Electrical, a company that has been serving the Columbia area since 1981, also became part of TurnPoint’s expanding portfolio. (TurnPoint was Services)
Customer Feedback:
- Higher Rates: One of the most significant changes customers report is dramatically higher service rates, with customers now effectively being charged more than $500 per hour for plumbing services in some cases.
- This is often concealed using a “flat rate menu” that presents seemingly fixed prices for services. While flat rate pricing can appear transparent, it is often carefully structured to break jobs into smaller menu items, inflating the total cost.
- Example: A common service known as a minor toilet rebuild typically involves replacing the fill valve, flapper, and sometimes the toilet handle. These parts can be purchased at Home Depot or Lowe’s for under $50. However, customers frequently report being charged over $500 for this service, which often takes less than 45 minutes to complete. This effectively translates to labor costs of more than $500 per hour.
- Aggressive Upselling: Increased pressure to purchase additional services or products, even when they may not be necessary.
- Multiple Upsell Options: Technicians now often present homeowners with several high-cost upgrades, making it difficult to determine what is truly necessary.
Role-Playing Sales Training and Upsell Tactics
To boost sales and revenue, companies like TurnPoint Services often require technicians to participate in role-playing sales training sessions. These sessions are designed to teach employees how to present multiple upsell options and maximize sales orders during customer interactions.
How It Works:
- Scenario Practice: Technicians rehearse scripts to overcome objections and guide customers toward higher-priced options.
- Focus on “Enhancements”: Homeowners are frequently presented with multiple service tiers or add-ons, such as premium parts, extended warranties, or ongoing maintenance plans.
- Sales Metrics: Technicians are evaluated on the revenue they generate per service call, incentivizing them to prioritize selling over addressing the homeowner’s immediate concerns.
Impact on Customers:
- • Decision Fatigue: Being offered multiple upsell options can overwhelm homeowners, making it difficult to assess what’s truly necessary.
- Pressure to Choose High-Cost Options: Scripts and tactics often nudge customers toward the most expensive packages.
- Erosion of Trust: Customers may question whether recommendations are in their best interest or driven by sales quotas.
The Broader Impact on Columbia Homeowners
Private equity-backed companies like TurnPoint Services aim to maximize returns for investors, often at the expense of customers. This business model introduces several challenges for homeowners:
1. Skyrocketing Costs
- Service Fees: Increase to cover corporate overhead, investor returns, and national marketing campaigns.
- Drain Cleaning: What used to cost $150–$250 can now exceed $400.
- Hourly Rates: Reports of $500 per hour are becoming more common in Columbia, often disguised under flat rate pricing that obscures the true cost.
2. Multiple Upsell Options
- Rather than addressing the specific issue, technicians are trained to present several costly “enhancements” or upgrades.
- Homeowners may feel pressured to choose an option even if the base service would suffice.
3. Aggressive Sales Tactics
- Fear-based tactics are often used to upsell services, such as exaggerating the urgency of minor repairs.
- Service calls are increasingly focused on generating high-revenue sales rather than resolving the homeowner’s immediate problem.
What Homeowners Can Do
As private equity acquisitions continue to reshape the home services industry, homeowners can take steps to protect themselves:
1. Support Independent Contractors
- Choosing locally owned businesses helps keep prices competitive and supports your community.
- Use resources like Better Business Bureau or Angi to find trustworthy independent contractors.
2. Ask About Ownership
- Before booking a service, inquire if the company is independently owned or part of a larger corporate entity.
3. Request Transparent Pricing
- Insist on upfront estimates and avoid companies that use high-pressure sales tactics or surprise fees.
4. Research Reviews
- Check recent reviews on Google or Yelp to ensure the company maintains its reputation, especially after an acquisition.
Why This Matters
The consolidation of local businesses like Meetze Plumbing and Love Plumbing, Air & Electrical into corporate-owned entities fundamentally changes the relationship between homeowners and service providers. Independent contractors often prioritize trust, fair pricing, and community relationships. When these businesses are acquired, the focus shifts to presenting upsell options and maximizing profits, leaving customers to navigate higher costs and more complex decisions.
As homeowners in Columbia, we must be vigilant about these changes, ask the right questions, and make informed decisions about who we trust to service our homes.
For more information on OMERS Private Equity and TurnPoint Services, visit:
To learn more about the effects of private equity on home services, check out:
Closing Thoughts
Homeowners in Columbia deserve transparency, fair pricing, and personalized service. As private equity continues to influence the home services industry, it’s essential to stay informed and support businesses that align with your values. By choosing contractors who prioritize their community, we can help preserve the quality and affordability of essential services in our