Virginia Beach HVAC Installation Cost Calculator – HVAC Systems
Keeping your Virginia Beach HVAC installation system costs of a central air conditioner installation within reason is part of the overall budget plan for new home construction, remodeling or renovation projects. Determining central air conditioning costs for a repair or replacement on your HVAC system may seem like a simple process, but there’s a little more to it than first meets the eye.
- The average HVAC system cost of a new replacement air conditioner unit can range from $3,500 and $7,525 for price of installation. This is the typical cost range for a central air conditioning unit installation. However, it will also vary by your home’s square footage & the local costs of HVAC installation by contractors in your area.
- The cost of an HVAC system for your home is determined by the HVAC contractor calculating the total square footage of the property to find the air conditioner unit size (tonnage ad BTUs) necessary for home efficiency + the air conditioner unit installation price.
How HVAC Contractors Determine Their Estimates
Contractors deserve a fair profit, and consumers deserve a fair price.
Here’s how most HVAC contractors determine a cost that is fair to both parties – and what a few unscrupulous contractors do to attempt to pad profits.
The contractor determines:
- Equipment Cost: The wholesale cost of the right equipment for the home’s needs
- Installation Supplies: This often include sheet metal or pre-built plenum, refrigerant and line set, AC pad, thermostat
- Labor: Estimated hours of labor. Price varies. For example, a certified installer might be paid $50 to $75 per hour and have a helper being paid $20 to $35 per hour.
- Travel: Time and mileage to the job
- Fair Profit: Profit doesn’t all go in the pocket of the company owner. It is first used to pay overhead expenses. These include vehicles (and their maintenance and repair), possibly warehouse or storage space, liability and unemployment insurance, license and bonding fees and more. What’s left from all that is “pure profit.”
What is Fair Profit? Unfair Profit?
In the HVAC industry, the markup for profit is 35% to 60% among contractors with a good reputation. Of course, the contractor probably won’t tell you what its profit margin is, even if you ask.
Example – $7,000 Job: If the HVAC company has costs of $7,000 to replace a gas furnace and central air conditioner, they will add a profit of $2,450 (35%) to $4,200 (60%).
Cost of Living: Profits are higher where the cost of living is higher because the HVAC company has greater expenses. It pays higher wages, more in taxes and has more overhead.
Excessive Profit: There are two times a contractor might seek to “price gouge” customers.
1). Busy companies: The company is so busy, it doesn’t need the work. It will add 70% to 100% profit, and if the customer accepts the estimate, it will move that high-margin customer to the front of the line. This often happens in the worst heat of summer when overburdened ACs and heat pumps quit and the dead of winter when furnaces give up. This is a good reason to consider pre-emptively replacing your system once it’s about 15 years old and/or has had major repairs.
2). Lazy companies: The company has learned that it can make just as much money with less work by charging more. If the company charges excessive profit, it might get half as many jobs. But it might make the same total profit.
For example: 5 jobs x $5,000 profit = $25,000. 10 jobs x $2,500 profit = $25,000
Virginia Beach HVAC Installation
In many cases, a new HVAC unit can last 10 years or more, so you want to make the most informed decision you can. Contact us at (757) 420-6699 or send us an email at [email protected]. We also have special coupons and also discounts for Veterans and Senior Citizens. So feel free to call us for a service or repair today!