HVAC cost

[jerryaldini]

Originally Posted by ScareCrowe

I work in HVAC sales, granted I'm not in KC, but central Missouri, so I would think labor costs would be similar. My 3 ton 18 SEER 2 stage AC with a 96% 2 stage furnace with variable speed blower is under 12k. We do a 17 SEER AC with a 93% furnace (all single stage, it's our budget system) for 10k. This is all Lennox equipment, so it's not "no name" garbage.

I'd say they're a bit high.

SC, in sales, how much are you expected to negotiate with customers? Does your management give you much wiggle room on price? Trying to understand if this is supposed to be like buying a car where some haggling is expected. I'm not worried about 5-10 percent sort of thing, just trying not to pay 30 percent more.

[ScareCrowe]

Originally Posted by jerryaldini

SC, in sales, how much are you expected to negotiate with customers? Does your management give you much wiggle room on price? Trying to understand if this is supposed to be like buying a car where some haggling is expected. I'm not worried about 5-10 percent sort of thing, just trying not to pay 30 percent more.

I do have some wiggle room, but not much. We're pretty tight on margins & my jobs are tracked by profit so if I'm not making enough I won't get commission & if it happens enough I'm probably going to hear about it. If anything I'm usually adding to book prices to account for site issues. Generally speaking I only come down if there's some justification for it in the job. (like they don't need heat in their electric furnace so I can cut out the heat pack price)

The one thing I can recommend is if they offer financing ask if they do a cash discount. Despite what they tell you free financing isn't free, the company is paying for it & they're adding that cost onto your quote. If you aren't going to use the financing a lot of places will give you that money back if you know to ask for it.

[jerryaldini]

Originally Posted by ScareCrowe

I do have some wiggle room, but not much. We're pretty tight on margins & my jobs are tracked by profit so if I'm not making enough I won't get commission & if it happens enough I'm probably going to hear about it. If anything I'm usually adding to book prices to account for site issues. Generally speaking I only come down if there's some justification for it in the job. (like they don't need heat in their electric furnace so I can cut out the heat pack price)

The one thing I can recommend is if they offer financing ask if they do a cash discount. Despite what they tell you free financing isn't free, the company is paying for it & they're adding that cost onto your quote. If you aren't going to use the financing a lot of places will give you that money back if you know to ask for it.

Thanks so much for everything SC, super helpful!