Repair heat pump, or replace it?

Feb 18, 2006 28 Replies

Depending on the capacitor, that sounds about like our charge.......6 years ago. We were $69 for the service call. Then $89, then $109 2 years ago. We WERE going to go to $129 January 1st, but decided not to. As I have stated before, we are just about the cheapest in town

Bubba,

You have not seen my books, so how can you say what my rate should be. In your area, the labor rate may be twice what it is in my area. You would have to charge more. The cost for rent/mortgage may be higher on your building. You may run a sloppy operation. Any number of thjings could run your costs up higher than my costs. You see how often people post to this group asking prices. The answer is always: "Depends on where you are." You assume too much. No one subsidizes me. I always pay my bills on time and take fast pay discounts where offerred.

I know one contractor in my area charging over 2 times what I charge, and he is not worth it. I also know contractors chargimg less. One inherited his home and shop from his father. That keeps his costs down. I can't charge what he does and stay in business, but he makes a profit because his overhead is low.

But at the same time, if it takes longer than 1/2 hour to diagnose and replace a stuck contactor, your techs are slow. What you charge for travel depends on what it costs you on the average and what profit you must have.

When we moved here to Myrtle Beach SC from near Pittsburgh PA, our rates dropped because our costs and overhead dropped. Labor rates were

1/2 what we were used to.

As the building boom here continues, our costs and rates are likely to go up. Don't assume it is the same here as it is where you are, because it is not.

That is all I have to say.

Stretch

I dont care where you are. You are way to low at the rates you posted. You ARE oviously a one man band. Its a good thing your wife works. Wait till you get hurt or the tax man cometh. Thats all I have to say, Bubba

Bubba,

There are 4 of us in the company, plus my wife does the bookkeeping part time. (She Gets Paid For It by our company) We have health insurance, paid vacation, paid holidays, profit sharing pension fund/401K. The guys all take a truck home at night. We have a 2400 square foot shop. We pay an accountant to calculate our taxes at the end of the year and do financials. We pay unemployment taxes. We have a $2,000,000.00 Liability policy and have workers compensation insurance. We carry $1,000,000.00 Vehicle insurance.

Most of our service calls are over 1/2 hour, but some fall under the minimum charge for labor. I don't care what you charge, i charge what I need to to make a profit, not what you need.

Our replacement systems have been 13 SEER and higher for years. We do air balancing, mold prevention through humidity control, crawlspace encapsulation, residential and commercial service work. We DO NOT do new construction, not enough money in it.

I make more money than I ever did working for someone else, and will make still more as the company grows.

Maybe you need to worry about yourself more instead of judging people who do things that you can't.

Stretch

Lets say Im not convinced of your babbling. Maybe you charge $10,000 for a 13 SEER system? That's about the only way your numbers add up. You sure are wound up about this issue. You not telling me something? Bubba

Bubba,

Your mind is closed, so there is no use responding further. 13 SEER heat pump replacement averages $4500.00 installed.

Stretch

I thought you said before.............."Thats all I have to say". What else do you have to say? Bubba (13 SEER?? You sell that bottom feeder, builder grade s*it?)

Billy, Shut up, cuntlips. More than "nuff" said. Bubba

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