The unit was $1350, I added a line set cover, pad and feet for another $200, and needed about $200 in electrical equipment - it was a long wire run and code requires installing a disconnect box. The only special tool was a hole saw bit for running the coolant lines.
So maybe $1850 all-in, plus 8 hours labor. I’m sure a pro could do it in half the time. But the low end for a pro install is $5k.
I get that they have insurance and warranty or whatever, but that’s a damn juicy margin.
Suppose we wave a magic wand and everyone in society becomes equally wealthy. That doesn't solve the fundamental problem of a contractor shortage. It just means we no longer have prices as a method for matching contractors with jobs to the same degree as previously. Without prices being bid up as high, there is less incentive to go into contracting, meaning that the shortage is liable to persist for longer.
I know our labour costs are going to be lower, but not that much lower. Glassdoor indicates that salary for a US HVAC installer is about US$60k, and in NZ a local equivalent says NZ$60k, so I’d expect the numbers to be the same.
Oh and that price includes all taxes and excludes rebates (which most of us don’t qualify for anyway)
Hardly anyone wants to do that so we're stuck with the status quo. You're basically stuck either paying through the nose or finding a family/friend with the equipment and expertise or doing it yourself.
Come to your house to quote, and only land 1/4 quotes maybe.
Schedule the workers
Order the equipment.
Get an electrical permit.
Pay for the truck and all the tools.
Insurance for the company and trucks.
Advertising costs
Warranty and callbacks
I can assure you that this is not the get rich quick scheme you may think it is.
It is in fact a get rich scheme.
I mentioned warranty and insurance.
You don’t need to “schedule workers” if you are owner operating. Maybe you want a (non-skilled) helper to speed up the install, but you absolutely could install solo. That said, you will need a licensed electrician to run the circuit.
In my metro, hvac contractors can get ten-packs of permits for mini-split installs, and at most one out of ten is inspected. It’s a rubber stamp if you’re a pro, and the individual permit is maybe $50.
And that $5k I mentioned is the low bid, which you’ll only see if you know how to find contractors who aren’t private equity fronts. These guys are not advertising, but they stay busy by having the best price. There are shops that will happily charge you double for the same work.
I never said it’s a get rich quick scheme. It is just highly compensated for owners without requiring the level of expertise of something like a plumber or electrician. I’m curious what is happening in the market to support these margins.
