How to Compare HVAC Estimates

my average ticket for this year uh for for system change outs I think I'm at 145 that varies like as far as like how much duck work I'm having to fix uh what what type of system am I installing how efficient is that system uh and so because it can there's they make HB systems like they make cars there's so many options that you can choose from I try to give as many options to a homer as possible so yeah so pricing of a job it can vary home to home it kind of goes back to our you our got our our team is worth being paid um and we want we try to pay our guys well uh one for retention two uh so they can have a good career in in the trades as well

How much do we actually make on a service call? Well, we make 15% net profit. Our average ticket in the HVAC service world is about $450. So, for overhead, we have $130. Next, we have our parts and materials, $112 and 50 cents for parts and materials. And you're going to think, "Oh my gosh, you're paying that service tech $112.50 for that service call?" Well, here's where the rubber meets the road. So, this covers that 40% time where we're going to be driving down the road, stocking the shelves, doing what we need to do to make sure that we're capable of serving your home well the next time we see you. Then, we have our warranty. So, for our warranty, we got $22 and 50 cents. We make 15% net profit on our HVAC services. This call, we would have made $67 and 50 cents. That is if everything goes right. >> Your pros.

after I spoke with a customer she seemed pretty concerned about the things we found uh we're going to definitely get a comfort visor to come look at it she can get a better assessment of what it would be to replace the actual unit and then all our quotes are going to be good for 30 days one of the reasons we recommend these estimates is to give the customer an idea of what it cost to actually replace that unit you know maybe it's not in their budget right now to actually replace it but through this we can actually educate them and have them be better in forums to make the right decisions for them

So what we are seeing coming down the pipeline, I am very much on board of, I think we're gonna see a price increase somewhere. Again, it's a pretty big variance, but somewhere between 5 and 12-ish percent. Again, all this has to do with what does the stock market say? What does the private equity do? But what we do at Yarbrough & Sons is every year we bring in all the major manufacturers that we, you know, wanna do business with and say, "Hey, give us your best price. We need the best price so that we can give our customer the best price." And for the last several years, that's worked out really well for us. We've been insulated from a lot of the industry-wide price increases that are out there.

Anybody who gets on, you know, a video or gets online and tells you, "Well, you know what? Prices are gonna increase between six and 7%," they're lying. They might be right. They might have just blindfolded and thrown a dart and nailed it. But they're not really basing anything factual here. Here's what I know. Over the last 12 months, meaning our rolling year, so what we look at is we have received four price increases by our major manufacturers. We had, essentially it was a five, a four, a four, and a three, and those were our price increases.

We got a negative text message from a customer who we served as a first-time customer. And essentially the gist of the the text was that they didn't agree with the pricing. If you've been following us long enough, following along with us, you know why we charge what we charge. You actually could tell me better than probably I could on some stuff as to what our profit margins are. And we are very transparent in why we charge what we charge so that we can take care of our people and our customers to the best of our ability. And you know, sometimes that comes with the realization that not every not every customer is our customer, and that's okay. This customer let us know that they were disgruntled with the price. More than likely, we're going to be refunding this to them. So, doesn't really matter in the long run. But, you know, coming to the realization that we have to charge a certain amount so that we can take care of our team and take care of you, our customers, to the very best of our ability. So, sucks getting told, uh, you know, that somebody's not your customer. However, how you handle it, how you respond matters a whole lot. And uh we we we decided to respond with transparency, with honesty, and ultimately with our pricing foot forward so that everybody knows why we charge what we charge.

what's included in the quote. One of the main reasons I think it's important for a customer to get this question answered is one to verify the caliber of company they're working with. Two, to get peace of mind to know is everything that that we're talking about going to fix my problem. The stats show that most people will only buy two HVAC systems in their life. So, this isn't a huge like, you know, once every 3ear purchase. Most people will only have to go through this process twice. So, make sure that you get the what's included in my quote answered before moving forward with any company. Young Rose.

And also too, like, the AC emergency cost, you know, that that comes into a whole different calculator a lot of times, right? Because So, not at Yarborough & Sons, at some other companies in the area, you have emergency fees. And those emergency fees can sometimes be double, triple, or quadruple the amount that they would normally charge during their normal business hours. So, say it's, you know, 8:00 at night, or say it's the Saturday afternoon, and you got the family coming over and they're getting ready. Well, now there's an emergency service fee on top of the repairs to go along with it. So, you're talking about one, there's a place and time to replace your equipment, and two, if your system fails when it otherwise could have been prevented by some, you know, preventative maintenance, well, now we're having to pay even more because there's the emergency breakdown rates that we have to factor in. And so, that, you know, $200 repair, or $300 repair, now looks a whole lot more like six to seven hundred dollars because, well, we have, you know, convenience fee, after-hours surcharge, demand fee, all things like that. Again, not at Yarborough & Sons, but at some other places. Take that as you will.

Aren't you worried if your prices for Yarbor and Suns are on your website, people are going to know exactly what you charge? Yeah. Yep. That and that's the whole point. We want to operate with transparency to our customers. So, I don't want to make people guess or be uncertain about what they should expect from us and our team as far as prices are concerned, rates are concerned, how much it costs to replace your HVAC system or your water heater. So, if you go to estimate.ybrronsons.com, you can get a free instant estimate less than 45 seconds or less. I wouldn't stick on a car dealer's website if it said call for pricing. I would bounce. So, we decided, well, why would we expect anything else from our customers? And we're trying to solve that. We have instant estimates online so that you can see what our prices are when we roll it to your house. Hope this helps. [Music]

Your HVAC system is the most expensive appliance in your home, and there are buying mistakes that you can make that can cost you thousands over the lifetime of the system. So, let's make some good decisions and let's tackle this. So, whenever you are reviewing all the prices that you're getting from your contractor, review one, reputation, longevity of business, and also make sure that they're providing you more than one option, and that you've got several options to choose from when it comes to to your comfort and your needs within the house. Homes are built different, and so their the HVAC systems and the ductwork and all the the bells and whistles that come along with it, it's not a cookie-cutter fit all the time. And so, you want to make sure that you're getting exactly what you need for your house and your needs. Your home >> [singing] [music]

How much do we actually make? Our average ticket in the HVAC service world is about $450. So for overhead, we have $130 that goes to pay the support team, the managers, the warehouse, insurance, taxes, all that fun stuff that really nobody wants to talk about or think about. $112.50 for parts and [music] materials. And the same is going to be true, like we said, 25 and 25 direct labor 11250. What did the company make on this call? This call we would have made $67.50 net. Just like uh we're trying to squeeze in some profit. I'm trying to squeeze it in on the page. That is how much we make on an HVAC service call. [music]

Hey friends, with summer on the way, we figured we'd answer the number one most asked question that we get. How much does it cost to replace your central HVAC system? So, we wanted to come out and do what we do best, which is be completely transparent and honest. Above is our price ranges per tonnage. You know, ballparks are big. We can play Little League or we can play in the majors. But if you look, you'll see a pretty good idea of what you as a homeowner can expect to spend when it comes to replacing your HVAC system.

reliability and longevity at the end of the day. Uh the the value that you get out of that unit is going to matter more than the price you pay. You get what you pay for. I like to consider use uh an equation for how much that system actually costs. A 20 grand system, that system, let's say that system last, you know, 10 years. Gosh, you divide that by you divide that by each year that system costs them $2,000 a year to have that system. Now, let's say that same system lasted 20 years. That system lasts a long time. The cost that they paid up front was exactly the same, but the the the use the value use that they got out of that system effectively dropped from $2,000 a year down to $1,000 a year. [Music]

Don't trust the internet's HVAC prices. If you Google what a new HVAC system costs, you'll find sites telling you $3,900 that number is not realistic. Those are lead generation sites. They're not HVAC companies. They make money on your click and the way that they get the click is by showing you a price that sounds great. Uh then you're frustrated the real contractor when the quote is actually provided. Nationally, real systems replacements are running anywhere from 11 to $14,000 based on tens of thousands of projects that are tracked. We'd rather let you know the truth up front. That's why our pricing is on our website and you can see it before anyone ever steps foot in your home.

Whoever you choose to work on your heating, AC, and plumbing, they should be able to answer just a few simple questions before they ever lay a hand on your system, step foot in your house, or you give them a dime. And if they can't, it should tell you something. So, question one, what does a new system actually cost roughly before you even come out? A straight answer sounds like this. Replacing just the air conditioner in Oklahoma for your company runs between 7,500 and, 10,000 dollars depending on what size they want and what efficiency, what range, those types of things. But, between 7,500 and 10,000 dollars for just the AC. Question two is, if it's frankly a big one, which is where does the money that I'm spending with you actually go? Because the bill's never just like parts and labor. So, for us at your company, on a 10,000 dollar install, 4,000 is equipment, 3,000 is overhead, meaning the trucks, the training, the insurance. 1,000 dollars is for the crew, meaning the labor. 500 is set aside for the warranty, and 1,500 dollars is profit. Any honest company should be able to walk you through that, and we put ours right on our website for anybody to read. You'd actually find it on our pricing breakdown page. Question three is, what happens if something goes wrong after you leave? If there's no warranty answer, there's no accountability. You deserve those answers from anybody you let into your house. We just decided to publish it on our website before you even have to ask. Matter of fact, you can get an instant estimate on our website, or you can just click the link below and get an estimate for repair and replacement in just a few minutes. Honestly, takes a couple of seconds if you're fast at it. But, beyond that guys, do something nice for somebody. You never know, it might change the life. And as always, stay cool.