Those numbers don&#;t account for other equipment expenses like copper line sets, stands, wiring kits, extra refrigerant as needed, and so on. That can add up to anywhere between a few hundred and a few thousand dollars, depending on the project.
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Overhead
The rest of the cost of an installation has to cover overhead: Staff wages, training, trucks and tools, cushion for callbacks on systems that aren&#;t working right, and a little extra to take home.
According to some contractors we&#;ve heard from, a typical cost breakdown might be something like 40% equipment, 50% business expenses, and 10% profit&#;or that's at least what they'll tell customers who ask. Pre-incentive prices include a lot more cushion built in than that structure implies.
Another way to look at the cost structures: Edward Louie, an efficiency researcher at the Pacific Northwest National Laboratory, wrote up an itemized breakdown of all the individual costs that go into operating a small HVAC contracting business, and how much you&#;d have to charge per project to meet them.
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Sales strategies
So how does that all affect the prices you&#;ll see on a heat pump quote? Different pros take different approaches to their pricing practices.
Many contractors offer menu-style pricing (including some on the EnergySage Marketplace). That is, they set prices based almost exclusively on the system size and type. Need duct modifications or electrical upgrades? You can pick those adders off the menu as well. The costs don&#;t vary significantly from customer to customer.
Other contractors are more fluid with their prices. Their salespeople tend to work on commission and might have freedom to experiment with sales tactics and tweak their prices as they see fit.
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