1. I need a new: 2. My zip code is: Updated Oct 28, 2014 Buying your new HVAC equipment – whether an air conditioner, boiler, furnace or similar product – directly from an online HVAC retailer represents a substantial cost-saving opportunity. HVAC contractors often build a substantial markup into the price that they quote consumers to compensate for some of the costs of running their business (i.e. sales calls, running loadThere are a number of companies that can offer you substantially lower prices if you purchase your equipment directly, without having a contractor purchase it for you. However, buying consumer-direct equipment can also present a set of potential In some situations consumers may be best-served by getting competitive bids from several contractors, and having the winning contractor purchase and install the unit. However, it is usually possible to save a substantial amount of money if you are willing to take on some additional

This article outlines the issues you should consider if you are thinking about buying your equipment from a consumer-direct retailer. Equipment sizing affects both the comfort of your home, and the ongoing costs to operate your new furnace or air conditioner. the equipment is too small, it won't adequately heat or cool your house. If it is too large, it will cycle on and off more often than necessary.air conditioning unit indoor This cycling is inefficient and will unnecessarily increase the cost of20 ton ac unit for saleYou want to make sure that your furnace or air conditionerac to dc converter design is the right size. The only accurate way to determine the appropriate size is to perform a load calculation.

If you choose to purchase from a consumer-direct retailer, you have People often choose which furnace or air conditioner to buy based on brand names with which they are comfortable. An alternate approach is to look at the warranties offered by the different brands. (You can find a summary of warranty information on each brand profile in the left toolbar.) provide longer standard warranties typically do so because they know that their risk of costly repairs is minimal. A third approach is to examine the lists of the most highly rated series of HVAC equipment. FurnaceCompare generates these lists from the thousands of reviews that homeowners and contractors submit to the site: HVAC equipment brands have varying policies on whether they will honor warranties on equipment purchased online. Goodman, for example, says that the warranty of any furnace purchased online is null and void. In general, HVAC manufacturers appear to oppose consumer-direct purchases for several reasons:

However, most brands focus primarily on whether you purchased your equipment through a licensed distributor and had it installed by aAfter speaking with representatives from six of the major brands, we have determined that as long as you meet these criteria, you should not have a problem with your warranty. Even with Goodman, which has a policy of invalidating the warranty of any equipment purchased online, the warranty remains valid if you purchase your equipment from a consumer-direct retailer over the phone, rather than placing the order on the internet. Of course, this is not a guarantee that you will not have problems. If you have any questions about your warranty, you should direct them to the retailer from whom you buy your equipment, or to your brand's customer support phone number. A number of consumers have reported finding that HVAC companies are reluctant to work with them on an hourly basis. You have a few options in terms of finding a qualified contractor to

In order of convenience, they are: If using the latter options, be sure to refer to our tips on how to select a contractor. You can't simply find a "Blue Book" or price list for central heating and cooling equipment. The price of installation varies between different brands of equipment, and based on how much work is involved in configuring and installing the unit. However, the following articles will help give you a ballpark price, and understand how HVAC contractors set prices:To estimate heating and cooling equipment size *, enter the square footage of your home: Sq.Ft. If you don't know Equipment Size, SEER, AFUE/HSPF, etc., click on the name in blue for more information.Calculate your markups carefully to earn a profit. Comstock Images/Comstock/Getty Images HVAC companies that service residential and commercial heating and air systems have an important job -- no one likes to be hot in the summer and cold in the winter. Even though people need your services, they don't want to pay an exorbitant amount to get their HVAC systems repaired or replaced.

At the same time, you need to make enough money to pay your staff and your bills. Break-Even PointBefore you decide on how much to mark up your materials, know how much you need to make on the job to break even. Add up all your bills and divide that by the number of jobs your staff typically complete in a month. Calculate the number of hours the job should take, how much your staff person makes per hour -- including costs such as health insurance and workers' compensation -- how much your charge per hour and the cost of the materials. If you need $50 per hour to cover all your staff costs and you charge $100 per hour for labor, that's $50 toward your break-even point. If you need a profit of $100 per job to keep yourself in business, mark up the materials accordingly so they make up the other $50. Markup vs. MarginMarkup and your profit margin are calculated differently. The amount you mark up your materials doesn't equal your profit margin percentage. Understand the difference so you can more accurately set your markups to make the profit you're expecting.

For a part that you paid $100, marking it up to $150 gives you a 50 percent markup: multiply 100 by 0.50 to get a $50 markup. To get your margin, divide the markup -- in this case $50 -- by your cost, $100. You get 0.33, or 33 percent. In this example, a 50-percent markup equals a 33 percent profit margin. Parts MarkupA standard markup in a non-retail business is 100 percent, meaning you charge the customer twice what you spent on the part or material. This requires accurate bookkeeping and estimating skills because prices change constantly. Know what you spent on each part before you can mark it up correctly. Your overall cost for the job also includes a labor markup, charging more per hour for your technician's time than you pay him. These two markups can work together to make your business profitable. When you mark up your materials by 100 percent, you typically mark up your labor less, such as 25 percent. Overall MarkupInstead of setting a percentage to mark up your materials, provide overall job estimates.

Decide how much you need to make on each job and provide an estimate that increases the total by a percentage instead of breaking labor and materials into different pieces that need to be marked up. For example, if your actual labor cost, including insurance and commissions, is $400 and your materials are $300, your total cost to do the job is $700. Mark that up so you get a net profit of 30 percent by dividing $700 by 0.70, and you get an increase of $300, for a total customer cost of $1,000. Set your overall markup percentage based on your break-even point to ensure that the job makes enough to pay your bills and, hopefully, makes a profit for the company. References Contracting Business: Get Scientific With Your Ability to Price for ProfitMr. Contact Us : : 866-2MrHVAC (866-267-4822) Home Site Info Latest Articles How We Can Help Products Free HVAC Stuff Privacy Policy Category: Calculating Gross Profit MarginService Snitch: Heating, Air Conditioning, & Refrigeration Repair (HVAC/R): Don’t Get Blown AwayHousing Zone: Remodelers Exchange: Protecting Your Margin and Mark-UpHome Tech Publishing: Handyman: Economics of the Handyman Business Photo Credits Comstock Images/Comstock/Getty Images Suggest an Article Correction