Tag Archives: bids

Should You Buy A Private Label Air Conditioning and Heating System?

If you are getting bids on having a new AC and heating system installed, you might be offered a private label system. Like other private label products you may be familiar with, instead of having the manufacturer’s name on the equipment, it is branded with the company that is selling and installing it.

The main reasons HVAC contractors will offer a private label system are straightforward:

  1. Because the quality of the installation matters considerably more than which brand of equipment is being installed,  independent HVAC contractors are now putting more emphasis on “selling themselves” rather than the brand of equipment.
  2. Customers are less likely to compare it to the equipment in competing bids
  3. Since there is less brand advertising and perhaps less markup between them and the factory, the contractor who installs the equipment likely has room to make more profit margin in their cost on the equipment than on branded units. Or they can lower the price to you and make the same profit as on branded units.
  4. You (or the next owner) are more likely to call them for maintenance, repairs or replacement.

HVAC Industry insiders often refer to the equipment as “boxes”

The inference here, of course, is that the ac and heating equipment, heat pumps, etc.  are a commodity. To the extent that they are made from mechanical parts built by factories (some of them the same ones…) from all over the world, I agree with this assessment.

In some of the industry forums, I often read about confusion over who currently makes the equipment for certain well-known HVAC brands vs. who used to make them or whose parts they used.  Brands and factories get relocated overseas, change ownership, or get split up to the point that some industry insiders are not sure who even currently owns some brands.

A private label air conditioner and heater system can be a good buy if:

  1. You are convinced that the company and their technicians who will install it offer an acceptable overall value. Among other things, this includes: accuracy in sizing the equipment and quality of its installation, efficiency, features, benefits, customer service and more.  You can read more about that here on how to buy.
  2. You get documentation on what company or companies the warranty is through, and are comfortable that they will be around for the life of the equipment, and will make good on any defects or mistakes.
  3. If a third party is involved in the warranty (someone other than the actual manufacturer, such as Goodman, or the local company who is installing the equipment, then read this blog post before buying.
  4. You get written verification that your private label equipment qualifies for federal or other rebates. Note: the model number on private label equipment is often the same as for other models made by the factory that builds it.

Let us know if you have any experiences in this area so others can learn.

Compare Bids for a New Heating AC System AND Anticipate Contractor Add-On Costs

Comparing Equipment Features
Attempting to compare heating and AC brands, or shopping for features get the most attention from buyers. We wrote about this in last month’s blog and in other place.  We provide a free grid to compare new equipment cost at a glance. From your research or bids, you can fill in the blanks on this printable chart to cut through the “noise” and understand the equipment efficiency and other objective features. However, this equipment must be installed as a system in the structural environment of your home or building, which has variables. So, on to our main topic.

Preparing for What ELSE Might be Necessary to get a New HVAC System Installed
In situations where the new heating and cooling equipment is going into an existing structure (as contrasted with new construction) there are some major potential “gotchas” to prepare for.  I’ve experienced this personally, so hopefully you can benefit from my lessons, some of which were costly. Two good examples of this are electrical wiring and ductwork. They both have the potential to be significant “add ons” to the scope of the work in the project.

Electrical Wiring
If you are having central heating and AC installed into an existing structure for the first time, be sure to get info about wiring conditions.  This would be especially true for a older home or building with original wiring.  Essentially, you want to make sure that the wiring, connections, and circuit breakers, etc. can safely and efficiently handle the new load. If they cannot, you will experience circuit breakers tripping or perhaps much worse.  Because inadequate wiring will increase the cost of a job or might slow down the decision to buy a new system,  some equipment installers might be tempted to not bring it up at all. Or, they might focus the discussion on the new equipment first, get that signed, then bring up the wiring issue and cost.  This is also true for an older structure that already has central heat and air, but needs them replaced.

Ductwork
If your home or building already has ductwork, there are several parallels with electrical wiring to consider:

– The existing ductwork might be usable, OR it may need to replaced due to its structure, design or condition.

– Most potential issues can be seen ahead of time, but some could be discovered during installation of the new system.

– Project add-ons can be  awkward to negotiate or expensive to buy, because work has already begun.

The solution: Focus First on Getting High Quality Advice and Labor on the Installation
We rarely miss an opportunity to highlight the variable that matters most in heating and AC: the quality of the installation.  If you choose a dealer whose sales reps and technicians are trained, experienced and  ethical, dealing effectively with existing wiring or ductwork should be automatic. That way, you can be sure to get the right equipment for your situation and needs AND deal with potential variables in the original project scope.

If you and your contractor handle it well, getting a new system installed will be the start of a long-term relationship that includes preventative maintenance. There are also manufacturer and possibly installer warranties to consider, and those will be the topic of our next blog post.

If you find this useful, please share your thoughts and experiences with other reads. If not, let us know how we can improve.

Don’t Forget The Ductwork When You Buy A New HVAC System

When comparing bids and price quotes for a new AC and heating system, an essential component often gets glossed over: the ductwork.  Because of rebates and tax credits, a lot of attention is placed on SEER, EER, energy efficiency ratings and other new equipment features. However, unless the ductwork is professionally sized, configured, and sealed with the newly installed equipment, even the most advanced new HVAC system will not cool or heat your home at optimum efficiency.

Ductwork may be difficult or inconvenient to get to
Another reason ductwork can get less attention than it deserves: it may be difficult to get to.  Ducts in two story houses can be encased between the floors.  More often, it is in the unconditioned attic where it is blazing hot and surrounded by itchy insulation and desiccated mouse droppings.  Of course, in a pier and beam house with vents in the floor, the ductwork can be located in the crawl space under the house with spiders, snakes and other biting/stinging varmints.

Ductwork is a variable
The vast majority of local heating and air conditioning companies strive to deliver quality work and above board cost proposals.  However, for the rare contractor that is more focused on winning the signed proposal than delivering quality, the existing ductwork represents one of the least tangible areas.  To them, it could represent a variable where advantage or shortcuts might be taken.  Any proposal for a new system should address the ductwork. This includes whether ductwork will be definitely replaced, if there are any variables or contingencies (if mold is found when removing old equipment, for example), and specific  costs for each scenario.

The whole house approach to HVAC

In summary, central heating and A/C equipment relies on the ductwork to deliver the conditioned air and not waste it. Be sure to take the whole system  — the air ducts, the ductwork and the envelope (the places where your house meets and interacts with the outside environment) –into account when you plan and budget improvements to your HVAC system.