All-In-One Field Service Management Software by Aptora –

Best Priced Air Conditioners For HVAC Contractors

Professional repairman installing air conditioner in a room
Print Friendly, PDF & Email

Heating and air conditioning contractors have many options to choose from when choosing air conditioner manufacturers. Of course, air conditioner prices are a major factor, but also AC contractors want a system that is reliable, so they won’t have to go back to fix defective parts that are no fault of the contractors. This is where AC contractors will find a conundrum within air conditioner manufacturers. Some AC manufacturers require contractors pay annual fees to sell their systems, some are priced so high it becomes hard to bid AC replacements competitively, and some systems are priced super low but the quality of the components can be a gamble.

If air conditioning contractors don’t sell enough volume, the manufacturer can raise the prices of their units without warning. This can be a big problem for smaller AC contractors trying to compete with larger companies. Smaller AC contractors still need to make a profit, and having the manufacturer bully them rewards the bigger companies regardless of the quality of work or level of service. If AC contractors are charged different prices for the same units it favors the bigger AC companies. The only way smaller AC companies can still be competitive is if they start taking out things that affect the performance of the unit but save money upfront, and that is good for no one.

Here is a breakdown for HVAC contractors to help find which air conditioners are the best priced at the best quality. Heating & air conditioning contractors have three groups of air conditioning manufacturers to choose from. Some of these brands are made by the same company, like Toyota and Lexus.

Inexpensive HVAC brands

These brands include Amana, Frigidaire, Ruud, Payne, and Gibson. The quality of these brands can be hit or miss but the warranties will always cover manufacturer defects. HVAC contractors need to be diligent in checking for manufacturer defects by putting the system under long nitrogen leak check and visually inspecting the compressor and other components. The occasional defect is best found early during or before the installation to keep customers happy but when the defect does slip through the cracks you want to be prepared to keep customers happy. HVAC contractors will find the best prices for these which should be passed down to the consumer. If you can stomach the occasional callback, HVAC contractors should consider these inexpensive air conditioners and heaters. Many smaller companies solely sell these units because of the great prices they offer. The brand distributors will also sell parts, flex, and materials at a better discount than any other distributor. Marketing by the manufacturers to the general public will be almost nothing so HVAC contractors will need to be prepared to educate and sell against other brands.

Mid-level HVAC brands

These brands include Day and Night, Bryant, American Standard, Rheem, and Goodman. These mid-level brand prices will still be competitive but slightly higher than the lowest brands. The number of defects is less and we have noticed these brands are more installation friendly. Day and Night, for example, have air handlers and furnaces that come in two pieces for a greater ease of installation with smaller footprints. HVAC contractors will also see more training and product support from the brand distributors. Their parts, flex and materials will also be mid-level priced. HVAC contractors will see multiple office locations which are nice if you work in more than one area of town.

High end, well-known HVAC brands

These brands include Trane, Lennox, Carrier, and York. High-end brands carry with it consumer recognition from the marketing they do, but unfortunately, the HVAC contractors will find their prices the highest in the industry. Each of these manufacturers will have tiered pricing. Tier One pricing is from $50,000 and below and has the highest prices. Assuming air conditioning contractor’s retail prices with a 2 – 2.5 multiple after equipment, labor, and materials, that would mean an HVAC contractor, would have to gross at least $100,000 a year in air conditioning sales. Tier Two pricing is between $50,000 – $100,000 and discounts Tier One prices about 2.5%. Contractors in this range need to gross $100,000 – $200,000 in sales annually. Tier Three prices offer a 5% discount from Tier One prices and are for contractors selling more than $200,000 a year. Tier Three prices often require contractors to sign exclusivity agreements.

Manufacturers of high-end brands make systems with a good reputation for quality. Although Trane units may be well made, their parts are ridiculously expensive. Go to a Trane parts store and you will find parts marked up 1.5-3 times more than the exact same part at another distributor. Why? Who knows but this could be a sore point for homeowners who bought the Trane name but still want a fair price on the service and maintenance of their unit down the road. This is where Trane loses a lot of customers.

Home owners will be most familiar and may request the well-known brands but these well-known brands will be the most expensive for mid-level and smaller sized HVAC companies, which will be passed onto the consumer. That’s why you may see many mid-level and even larger HVAC companies sell mid-level brands… they offer much better pricing to HVAC contractors. Most manufacturers will offer co-op dollars for HVAC contractors to advertise their brand with some co-ops are less strict in their guidelines than others. We hope you are able to find the right balance of quality and cost savings when purchasing your AC systems and always do right by the customer.

Our thanks to our guest author Mr.  David Byrnes, LEED AP
Home Performance Specialist

To learn more about the best-priced air conditioners click here.



Table of Contents

On Key

Related Posts

Deferred Revenue Used in Contracting Business Accounting.

Understanding Deferred Revenue in Contracting Business Accounting

Print Friendly, PDF & Email

Deferred revenue, also known as unearned revenue, is a crucial concept for HVAC and plumbing companies that often receive payments in advance for services. It represents money received for goods or services yet to be delivered, making it a liability on your balance sheet. Understanding and managing deferred revenue ensures accurate financial reporting. This guide will walk you through the definition, accounting treatment, and importance of deferred revenue, complete with an example journal entry. By the end, you’ll be equipped to confidently handle deferred revenue, ensuring your business remains financially sound and trustworthy.

Confused Housecat Doing Taxes

A Contractor’s Guide to Federal Filing Requirements for S-Corps and C-Corps

Print Friendly, PDF & Email

Navigating federal filing requirements can be daunting for any business owner, especially in the field services industry. Whether you’re managing an HVAC or plumbing company, understanding the specific forms and deadlines for S-Corporations and C-Corporations is crucial for maintaining compliance and avoiding penalties. This comprehensive guide breaks down the essential monthly, quarterly, and annual filings, ensuring your business meets all IRS obligations seamlessly. From payroll tax forms to annual reports, we’ve got you covered with all the information you need to stay organized and focused on growth.

Your Cart Is Empty

Check out our shop to see what's available

Scroll to Top

Request a Personalized Demo

Fill out the form below, and we will be in touch shortly.
Demo Form 121422
Please enable JavaScript in your browser to complete this form.

What number is equal to 7 plus 4?

By entering your information above and clicking the “Agree and Get Started” button, you agree to our Terms of Use and Privacy Policy that we may contact you, by SMS, at the phone number and email address you provide in this form in accordance with our Terms of Use. Promotion Terms & Conditions apply.

/* */