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Report: #42175

Complaint Review: service magic - golden Colorado

  • Submitted:
  • Updated:
  • Reported By: warren Michigan
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  • service magic 1626 cole blvd bldg 7 suite 200 golden, Colorado U.S.A.

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I became a member of the service magic contractors.They charge a fee of $99.00 to join and promise all of these sales leads that they charge you for.Here,s how it works they send a lead to your inbox via email it tells you what kind of work this customer wants the city they are in but no contact info.

If you accept by mouse clicking accept you are imediatly charged for that lead.This last Saturday Ireceived another lead from service magic I hestitaed to accept because I,ve been burned before by them but I need the work so I accepted the lead and then service magic sends the customers contact info,so I imediatly call her and she tells mne she already has had enough calls and that last night[friday she already had 3 contractors coming to her home to estimate her roof.

This is what we cointractors call a "dead lead" The problem is service magic refuses to refund the money .This dead lead cost my company $40.00 some leads are more than that.I agreed to pay for leads when I joined but I expect to at least be able to estimate the d**n job you know?

I have since reported them to the BBB and other agencie.The first time this happend [3 times this has happened] I talked to service magic and they emailed me back claiming they only send the lead to 3 contractors well they lied because this customer told meshe was getting annoyed with all the calls.

So it seems to me that service magic is in the business of selling dead leads.Do the math if they send out just 100 leads a week that are dead leads at $40.00 per lead accepted by contractors thats $4000.00 a week now factor in that service magic is nationwide.They say they dont send the lead to more than 3 contractors then they turn around and say well we have the right to send it to 4 contractors even worsening your chances of estimating the job much less actually selling the job.

I have been a roofing contractor for over 20 yrs and I have a very good business and have never had to resort to using a lead service until this economy took a crap this year and then with things as bad as they are to have a compnay like service magic rip me off like this I would have better odds at the casino dont you agree?They refuse to refund anything.

They will refund if you are sent a lead that is old or has been "accidently " sent twice which they did to me the second time I got a dead lead.They donot keep their word and they are liars,it took at least 10 emails to get them to give me their policy on refunds.They are a disgrace to the service profession.They pissing off a lot of good contractors out there I,m not the only contractor but it seems no one has the time to do anything about it.

dave
warren, Michigan
U.S.A.

This report was posted on Ripoff Report on 01/20/2003 04:07 PM and is a permanent record located here: https://www.ripoffreport.com/reports/service-magic/golden-colorado-80401/service-magic-rip-off-they-charge-for-sales-leads-that-are-dead-leads-wont-refund-the-42175. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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#4 Consumer Suggestion

Ripoff: Servie Magic these companies are large

AUTHOR: Roger - (U.S.A.)

POSTED: Thursday, June 09, 2005

People, Listen to what William said. This sounds interesting to me. Service Magic has alot of big clientel such as Maytag corp., Certan Teed building supplies, etc. Keep in mind that these companies are large, and have the money to throw around at the drop of a hat. Service Magic has to keep these large companies happy, the same way an advertising company would. or they would pull out. I did some investigating in this matter, and it seems only the large companies called first. and the small mom & pop companies called later.

All of the leads that I recieved were ether late, or no answer. I just got a lead the other day in Houston, Tx. but the job was in New york. Servie magic is still trying to debit my account against my will. Do like one victom said. If this company calls you, RUN FOR YOUR LIVES! CALL CONSUMER FRAUD!, TV STATIONS!, ATTORNY GENERAl!, ETC!

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#3 UPDATE Employee

Here's the truth on ServiceMagic......What people don't understand is that this is advertising, too.

AUTHOR: William - (U.S.A.)

POSTED: Friday, July 09, 2004

I've been with this company for over 2 years. This service has been featured in the USA Today, Wall Street Journal, just recently on the Today Show and hundreds of other publications nationwide.

We facilitate over 570 million dollars a month in consumer spending and are the largest most successful contractor lead service in the country. What people don't understand is that this is advertising.

If you spend 500 a month in the yellow pages and receive 10 phone calls you paid 50 dollars a lead no matter how it turned out or what kind of job it was for. Our value proposition is targeted leads for the type of work you want to do and where you want to do it. Granted 40 dollars for a 2nd story addition may seem like a waste if you didn't win the job, but a serious business understands "Return On Investment".

So if I send you 10 leads for and Addition, that's 400 dollars. Worst case scenerio is you come away with 1 project lets say for 45k. Your return on investment is 112.50 for every single dollar spent with us. If that doesn't make sense then you shouldn't be in business.

We prefer to work with business men, folks who understand the value that we bring to the table. Your all in cost per customer one will be lower than any other form of marketing out there, guaranteed! If you want us to run the hard facts with numbers for you, give us a call!!

For every one of you who ignorantly dog this company, there's 50 others who have nothing but the upmost respect for what we do. Not to mention Maytag Corporation and CertanTeed Building Supplies who have over 20 million in venture capitol in this company.

There's the facts! And oh yeah, we are listed with every single BBB in all 50 states, so feel free to see how "BAD" our record is(Good Luck)!!

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#2 UPDATE Employee

You People are dogging a service that is amazing! What people don't understand is that this is advertising, too.

AUTHOR: William - (U.S.A.)

POSTED: Friday, July 09, 2004

I've been with this company for over 2 years. This service has been featured in the USA Today, Wall Street Journal, just recently on the Today Show and hundreds of other publications nationwide.

We facilitate over 570 million dollars a month in consumer spending and are the largest most successful contractor lead service in the country. What people don't understand is that this is advertising.

If you spend 500 a month in the yellow pages and receive 10 phone calls you paid 50 dollars a lead no matter how it turned out or what kind of job it was for. Our value proposition is targeted leads for the type of work you want to do and where you want to do it.

Granted 40 dollars for a 2nd story addition may seem like a waste if you didn't win the job, but a serious business understands "Return On Investment". So if I send you 10 leads for and Addition, that's 400 dollars.

Worst case scenerio is you come away with 1 project lets say for 45k. Your return on investment is 112.50 for every single dollar spent with us. If that doesn't make sense then you shouldn't be in business.

We prefer to work with business men, folks who understand the value that we bring to the table. Your all in cost per customer one will be lower than any other form of marketing out there, guaranteed!

If you want us to run the hard facts with numbers for you, give us a call!! For every one of you who ignorantly dog this company, there's 50 others who have nothing but the upmost respect for what we do.

Not to mention Maytag Corporation and CertanTeed Building Supplies who have over 20 million in venture capitol in this company. That's the facts!

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#1 UPDATE EX-employee responds

College punk run company ruined my company!

AUTHOR: Paul - (U.S.A.)

POSTED: Saturday, October 11, 2003

Same as Dave says, I was with S.M. for about three years. We had a written contract which they decided to change (on their own) regarding number of contacts and raised the fees. I also had hundreds of dollars in crap leads which they charged me for against my repeated protests.

Now get this! When one of my ex-employees started sleeping with a customer, they ganged up with one of the assholes at Service Magic to force me to repay parts and labor for a properly installed but poorly engineered product. Service magic played judge and jury and actually gave the b***h her money back and charged me! My ex- employee was then encouraged to rip off the rest of my company through anomonous service magic dealings.

Service Magic has had the balls to send my bill balance to a collection agency who harrass me daily. Greedy Bastards should all burn in Hell.

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