This post is as much about HVAC profit margins in general as it is about Arlington Heating & Air Conditioning. First let me state that the work seems to be ok, but i was not informed of the price of the job before the work was carried out. I also believe that this company’s profit margins are excessive.
The technician spent 35 minutes installing a new Blower Motor. The part cost them $252 and they charged me $620. Tommy said i had received a 15% discount! He went on to explain that he needed to have a profit margin of 175% to stay in business. I don’t mind paying a fair price but I feel ripped-off.
In addition I was never given a price before the work was undertaken, i actually trusted it would be a fair price. If i had known, i would have got prices from other companies. The reason i didn’t get quotes on this occasion was because we have used this company in past years.
After the job was completed I reached out to other companies and the prices are similar. I can only conclude that the excessive profit margins are industry-wide. Most, like this company, use a ‘Flat-rate’ system. This allows the company to hide the cost of parts within a total price, avoiding giving the customer a breakdown of parts and labor. However, when asked, Arlington Heating & Air Conditioning gave me the costs of the parts.