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Why HVAC Repairs & Services Cost What They Do

From Your HVAC Team In Easton, PA

One of our most common questions from customers is “Why does it cost $X?” Many customers see their invoice showing the part that was replaced and it’s cost and then try to find out how much the part would cost if it were purchased separately. Once they see the part online for less than what they were charged, they feel like they were ripped off or cheated. 

The Real Total Costs For HVAC Repairs

When you call an HVAC company to come out for service, the replacement part (if needed) and direct labor are often a small portion of the total cost for the repair. The real cost to install a part or make a repair in your home is the operating costs of a business called overhead. Overhead is the hidden cost behind the scenes that make it possible for the repair to happen. Costs that the HVAC company incurs like, health insurance, automobile insurance, workers compensation insurance, liability insurance, bonding, building insurance, umbrella insurance, vans, fuel, maintenance, tools, office, furniture, warehouse, utilities, office personnel, phones, computers, training, paperwork, advertising, security, drive time, the list goes on and on. These costs are all part of the overhead and must be figured into every repair or installation we perform – not only to provide high level service, but to also break even. Then there is profit. Profit is the smallest component of the total cost, but without it, we can’t grow or have any reserves to weather a storm.

Flat Rate Up-Front Pricing For Repairs

Part replaced $95.00
Labor to install part $60.00
Overhead $240.00
Profit (if all goes well) $30.00
Total $425.00

Most HVAC companies charge by flat rate or up-front pricing. This helps the homeowner understand the total investment before repairs are made so they can make an informed decision about whether to proceed with a repair or not. Also, the homeowner pays the same price even if the technician has difficulty and takes additional time or needs to get additional parts. By using up-front pricing, the entire repair with the part, labor, overhead and profit are all figured in together. Imagine the conversation our service technicians would have with homeowners if we used the sample invoice to the right. Homeowners would be screaming that they didn’t authorize the “Overhead” and “Profit” and we must take them off the bill.

While some less established HVAC companies may charge less, they can only do this by reducing the part cost, labor to install the part, overhead, profit or a combination of all. Since overhead is the largest, they focus on reducing it. So, they work out of their home or garage, have only one or two people, reduce or eliminate their insurance, fail to train, reduce or eliminate after hours service, reduce warranty, drive unreliable vehicles etc. After that, they cut the next biggest item, which is labor. The service simply needs to go faster. I think we all know what happens when we rush. If they cut parts and profit as well, this company will surely be here today and gone tomorrow.

The Best Possible HVAC Products & Services For Our Customers

Well established companies like Comfort Solutions tend to focus on having the resources to provide the best possible products and services to the customer. We focus on retaining the top performing most qualified technicians to do the work. We are available during odd hours to satisfy our customer’s heating and cooling needs. Finally, by charging what we NEED to charge to stay in business, our customers have a trusted company that they can rely on. At Comfort Solutions HVAC, we offer a wide selection of customized cooling and heating solutions to homes across Eastern PA and the surrounding areas of NJ. We are dedicated to improving the energy efficiency and comfort of homes, while reducing energy bills.

Trust Comfort Solutions For All Of Your HVAC Needs

While this information doesn’t help soften the painful feeling of spending your hard-earned money on HVAC services, we hope that it helps you understand why HVAC repairs and services cost what they do. The HVAC specialists at Comfort Solutions want to make sure that your home or office remains warm and comfortable during the harsh, cold months ahead. Call us at 610-438-9300 to book an appointment, or click to contact us online.

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