Thanks for the response. I do understand completely that the business of HVAC business is a huge load and often when the fiscal towel is wringed out there is little left. And I also know and acknowledge that there are many good honest contractors. My example is not intended to disparage all, just the ones who place the black eye on their industry.

I wish you the best of luck with your business and thank you for being one of the good guys.

btw…. I looked at your website. Very nice.

Boyd

The HVAC business overhead is the main killer of the business and leaves little in the way of profits. It’s not uncommon for annual earning to be as little as 5% after factoring city licence fees and permits, state contractor license fees, bond insurance, workmens comp insurance, contractors liability insurance, medical benefits, not to mention the most biggist of all which is: advertisement costs news paper, several yellow book directories, internet clicks, and tools, vehicle purchases and maintance cost; and finally federal and state board francise tax. Oh, and of course before I forget, the HVAC commercial building has other astronomical costs, building insurance, office workers, utility bills, telephone bills, not only the office, but the technicians have them too. And add office supplies, invoices and business cards, accounting cost.

While it’s easy to be shortsighted on percieved abuses, the broad picture is not pretty for the contractor either. The contractor is constantly being undermined by the technician when he does side jobs that take away from the contractor who has to play by the rules. I really don’t know of a contractor who is doing well these days. I have recently noticeD a HVAC parts house displaying a large banner saying “OPEN TO THE PUBLIC”. Now what does that say to that would have been 5% profit margin?

As it is right now, I can’t afford to hire any employees, so I do as much work as I can myself. That spells trouble when you have unavoidable overhead costs that can’t be met. So remember the true price parts of those installations is really in the cost of being able to provide a professional consumer safe service.