Please recommend economical company for furnace replacement...

[davebarnes]

Originally Posted by Mystery123

bought the furnace myself, would the installation cost still be $800?

It would be more.
He makes a small profit buying/selling the furnace.

[Mystery123]

Originally Posted by davebarnes

It would be more.
He makes a small profit buying/selling the furnace.

Dang!
Think about it, at $50/hr, it'll be only $200 installation fee.
Even at $75/hr with a helper, it'll only be $300.
Plus materials may be another $100 (there was not a whole lot, new 1 ft gas tube, some aluminum vent plates, sealers etc...) and add another $100 for his license, insurance, work warranty etc.
So max $500.
I ended up paying close to $1000 on install.

If you check this site: Cost to Install Furnace - 2013 Cost Calculator (ZipCode based)
For a $900 furnace, total was under $1400 and that seems reasonable.
So for a $500 furnace, it should be less than $1000.

I'm not complaining as I got a good price compared to two other quotes.
Just wanted to check what is realistic cost for the contractors.

And I will have to install A/C next summer so need to decide whether to order it online and have local HVAC install it or do it all with the company.

[davebarnes]

Originally Posted by Mystery123

Dang!

You need to run your own business.
You are clueless.
An hourly rate of $250+ per hour for 2 people is quite reasonable.

Did you figure in their travel time?
Did you figure in the fact that they don't get to bill 2000 hours per year (as a salaried worker does).?
Did you figure expenses (truck, phone. advertising, etc.)

You are clueless.

[Mystery123]

Not that clueless. I know there are expenses running business but just because they don't get 2000 hours work in a year, they should recoup that from what they get to work on is not a great logic.
If that was the case, business who do a lot of installs would be cheaper but that's just the opposite when it comes to HVAC.
$75 is not minimum wage by any means. That high rate is for a skilled/licensed technician.
Mechanic charges around that to work on a car engine. For other parts, it's cheaper rate.
If same logic goes, one mechanic would charge $500 for the same job and another would charge $50 as he gets to work on many cars in a year.
HVAC install charge is just too high regardless of whether a company does 300 a year or 30 a year.
There is absolutely no justification for a $4000 quote from 1st company and $3000 quote from 2nd company to install a $1000 furnace regardless of their expenses as you mentioned above unless all employee drive Lamborghini and Ferrari.
I think HVAC industry has a monopoly on install as city and manufacturers require licensed company to install and not something DIY'ers can do.
It's same like housing market, just because an agent has real estate license, they get 3% of sale amount for just opening doors and signing few documents.

[mic111]

I think you got a great deal and should be very happy. This is only the beginning of your seeing the wide swing in prices for every home improvement project you do. Basically I think there are two types of contractors. Those who want to work very little and charge exorbitant prices. They can exist on the few jobs they get from people who don't do any competitive bid seeking. Then there are those that people hire because they provide good service at good value.

As an aside you can install your own furnace. Cities generally allow people to install their own. However you need to have really good skills to hook up the gas properly and generally two people to handle the heavy bulky equipment. Also have to do the research to acquire the new unit (get right size, choose good brand etc), pick it up from the distributor and dispose of the old. Generally it makes sense to hire someone because it would take you 4x-6x as long. Plus you have to pass inspection from the city and they may be more suspicious of an owner install vs. a contractor that they have experience with and who is known to do good work.

Be happy with your price. You did well. Remember they also spent time to give you the bid, to find the furnace from a distributor, to make the purchase and to pick it up. They are also probably getting rid of your old one.

[Mystery123]

Mic,
Thanks for comment.
As I mentioned before, I'm just trying to understand things from realistic point as install charges are all over the board.

I'm happy with the deal I got.

[davebarnes]

Originally Posted by Mystery123

I found a company in Tom Martino's referral list

Martino arrested on domestic violence charge - The Denver Post

Martino arrested on domestic violence charge

"A popular TV and
radio personality who goes by the moniker "Troubleshooter" has been
arrested for investigation of domestic violence after a woman was
hospitalized, Denver police said Saturday.

Tom Martino, 60, was charged with public disturbance and domestic violence Saturday at 4:55 a.m., according to court records."

[Mystery123]

Originally Posted by davebarnes

Martino arrested on domestic violence charge - The Denver Post

Martino arrested on domestic violence charge

"A popular TV and
radio personality who goes by the moniker "Troubleshooter" has been
arrested for investigation of domestic violence after a woman was
hospitalized, Denver police said Saturday.

Tom Martino, 60, was charged with public disturbance and domestic violence Saturday at 4:55 a.m., according to court records."

I saw that.
Good thing that I didn't go with the company in that list .