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Old 06-29-2012, 05:16 AM   #1
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Cost of Getting an AC & Furnace


My Mom is getting a new gas furnace and air conditioner. The quote she got for everything fully installed is $9800. After pricing all the components that were quoted it leaves about $3800 in labor.

The guy said it would take a day and a half to install including duct work. Is that too much for the labor?

Has anyone recently paid fro a complete install?

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Old 06-29-2012, 05:23 AM   #2
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Cost of Getting an AC & Furnace


Depends on many factors - size of system, model/type/brand of system, etc etc. We recently install a 3.5 ton dual fuel Trane system that cost more than that, and there was no ductwork involved.

If you're not comfortable with the price then I'd suggest you get other estimates, and remember that the cheapest guy in town is rarely a good choice when dealing with complex mechanical systems.

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Old 06-29-2012, 06:07 AM   #3
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Cost of Getting an AC & Furnace


Get 3 or 4 quotes using the exact same unit size and type with the same work to be completed. Use the one in the middle if insurance, references, and everything seems right.
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Old 06-29-2012, 06:11 AM   #4
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Cost of Getting an AC & Furnace


Thanks Scott,

At least it appears that, that is not totally ridiculous. I have been working with my mom over the phone and it's tough (as you can imagine). I told her for me to really be able to help she needs to get at least three quotes. She's at the point where she just wants to get it over with.

I told her either pay it and don't complain, or get two more quotes - of course I said it a little nicer then that - Afterall she's mom.
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Old 06-29-2012, 06:17 AM   #5
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Cost of Getting an AC & Furnace


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My Mom is getting a new gas furnace and air conditioner. The quote she got for everything fully installed is $9800. After pricing all the components that were quoted it leaves about $3800 in labor.

The guy said it would take a day and a half to install including duct work. Is that too much for the labor?

Has anyone recently paid fro a complete install?
Why isn't she receiving a new evaporator, or is she? Is this a changeover from R-22 to R410-A?
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Old 06-29-2012, 06:22 AM   #6
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Cost of Getting an AC & Furnace


That $3800 on top of what you can find the equipment for isn't all labor. It's a fair bid.
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Old 06-29-2012, 06:38 AM   #7
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Cost of Getting an AC & Furnace


If you waiting after the summer, you get a better price.
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Old 06-29-2012, 07:55 AM   #8
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Cost of Getting an AC & Furnace


There's more to doing business than parts and labor. We have overhead, liability insurance, workers comp, trucks, tools, equipment, employees, taxes, etc..
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Old 06-29-2012, 09:52 AM   #9
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There's more to doing business than parts and labor. We have overhead, liability insurance, workers comp, trucks, tools, equipment, employees, taxes, etc..
Markup and fixed labor rates take that into account. A sound business plan is all that is needed.

-- Joe
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Old 06-29-2012, 05:06 PM   #10
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Cost of Getting an AC & Furnace


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Old 06-29-2012, 05:07 PM   #11
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Cost of Getting an AC & Furnace


Since we don't know what size any of the equipment is. That may be a very low estimate.
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Old 06-30-2012, 12:35 AM   #12
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Cost of Getting an AC & Furnace


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There's more to doing business than parts and labor. We have overhead, liability insurance, workers comp, trucks, tools, equipment, employees, taxes, etc..

I didn't mean to simplify the business - I should have said labor and overhead. It's all related if she gets multiple quotes and I compare the equipment costs of each and then the labor and overhead.
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Old 06-30-2012, 08:48 PM   #13
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I didn't mean to simplify the business - I should have said labor and overhead. It's all related if she gets multiple quotes and I compare the equipment costs of each and then the labor and overhead.
Different businesses run different ways. To maintain profitability my rule of thumb is $1,000 per day per person for labor and "overhead". A quarter of that is your salary pool, your costs, and then your profit margin. Equipment is marked up 15% from cost. Of the 15% markup, maybe 5% is realized by actual profit.

Smaller companies have less overhead and are generally cheaper.

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