Quotes that Change with the Seasons?

[ers]

An HVAC guy who is a friend of a friend had quoted me in 8/2011 for replacement of A/C condenser, coil, and a furnace. We had the furnace replaced in 1/2012 and are about to have the A/C done now. In January the quote for the furnace was increased by 30%, and now the quote for the A/C will be nearly doubled. OK..how much are we being taken advantage of? Is this common for the cost of a quote to increase so much in what I believe is so little time?

[billygoat22]

Suppliers have been making increases from 9-20%. or more.

He may have also updated some of his pricing to match present rates as well. It was several months before we increased our diagnostic fee to represent the long term increase in fuel prices a few yrs ago.

[precision hvac]

In addition to what's been posted- you opted to do the job in 2 phases instead of all in 1 job. I always charge more to install the furnace & then return later for the A/C.
Equipment prices are continuing to climb.

[gregp]

was usual for suppliers to increase prices once a year. Now we are getting increases quarterly if not more. We used to make our quotes good for 45 days, now they are only good for 15. The increase in the prices of steel, copper, refrigerant, shipping etc. have made the market very volatile. So your increase does not surprise me

[Tempted]

If he knew you were going to replace the whole system when he did the furnace, then you guys should of replaced the coil also. If he has to tear the furnace back out again to replace the coil. Then his price is probably correct. It's not just an equipment cost it's a labor cost also.

[skippedover]

It's very difficult to maintain a specific quote for a fickle client. Not only do prices change, also frequently so too the models of equipment available. We offer a 5% discount if the client can make up their mind on the first visit, versus us having to make two or more visits to close the offer. Those who seek the cheapest bid are seldom disappointed at the price, just at the outcome.

[ers]

Thank you all for your replies. Unfortunately, we did not have the money to do the entire job at one time. Believe me, we would have preferred to do it that way. About the coil, it was installed along with the new furnace.

If I understand from your posts, the price increases seem reasonable. OK. What a hassle for you as contractors that to have to adapt quotes every 15 days. So, in our case, there was 3 months and then 7 months between the quote and the job! Ooops!

[wahoo]

Why was the furnace quote increased by 30% in January? Now the AC quote is nearly double? I'd recommend you get another quote or two from other contractors. I'd be leary of huge unjustified increases too. We have seen an increase in our overhead, but as a percentage of overhead, not nearly 30 to 50%! I'm afraid the contractor may be inexperienced, or something else entirely.:gah:

P.S. I know of no brand of equipment that has seen this large of an increase in just 6 months!!

[hvacman14]

just a thought here, i know of contractors that will offer deep discounts in the slow times just to keep guys working and doing jobs at the break even point just to keep from laying folks off, i have also offered specials on equipment ive had in stock at the time, only to have a customer call after the quote had expired (30 +days later) and want the job done and i had to increase the price because i had to pay increased equipment cost and shipping to me above what the instock unit i had originally cost me.

Prices do change, if you have any doubts as to wheather or not your price is good, i would get another quote from another reputable contractor, (not saying that your freind of a freind isnt reputable, ) i just always cringe when i hear that from a customer because its normally someone doing a side job and i stand no chance of getting the job anyway! (this is only my personal opinion, and not intended to offend any one)

[Tempted]

:ditto: Another price check would be best.

[skippedover]

:ditto: Another price check would be best.

"Price Comparisons" are only as good as the specification to which they're given. Absent a details specification, there is no way to make an honest comparison. One company does a load analysis, duct survey, intends to seal leaky ducts, perhaps adjust airflow, balance the system and their load analysis and duct survey guarantee the results will be good. Another company looks at what's installed now, throws out a quote based on nothing but a guess that the prior contractor sized it properly and is a much lower price. Which is the best company for the customer, the company that can guarantee the results or the company that's guessing with the customer's money?

If the customer has a specification, on the other hand, then some comparison can be made. For example, if the specifies a 2.5-Ton, 14-SEER, 1-Stage system with new condenser, AHRI matching air handler, static pressure not to exceed .5 IWC, system balance to be within 25 CFM in each room, system capacity to be within 3% of nomical, etc. Then yes, you can compare apples to apples and make an informed decision. But how many homeowners have the knowledge to draw up such a specification? And how many comparison bids can they get with such a specification? In the residential market, if they can get one quote guaranteed to meet the spec, I'd say it's a rare company indeed. Their quote will be high but their work and results are beyond reproach.