Air Conditioning Quality vs. Cost

When I was a young A/C contractor (newly licensed), I dedicated myself to providing quality service to my customers because they were my customers not my employer’s customers. I knew that if they were happy with the service, I would get credit for the quality workmanship that went into their project and they would tell their friends and neighbors. Being young and impatient I became frustrated that all the A/C customers were not beating down my door for me to do their work. I could not understand how I could loose jobs to other contractors that were not doing work at the same quality level I was. This was very disheartening to me and every other contractor who has experienced this. Why would a home owner or a general contractor want inferior work?

A residential, General Contractor, confided in me that he would prefer better quality air conditioning work in his houses but if he spent an additional $5,000 for a “quality” installation over the “cheap bid” he could not increase the price of his house enough to pay for the increase. He went on to say that if he took that $5,000 and put it into upgrading the kitchen he could increase the price of the house an additional $15,000 because the quality can be seen by the buyer. Air Conditioning improvements or extras are not seen or experienced during the purchasing process. So, my answer was the contractor did not prefer inferior work he just could not afford the premium work. The exception is “Custom” homes where the owners specify what equipment goes into the house and if they are high end buyers, they are usually older buyers and have experienced A/C problems in the past. These “Custom” buyers will spend the money not to repeat the past. Home owners have the same problem to a degree. It is difficult to pay premium prices for something you cannot see or show off. Home owners who have experienced A/C problems in the past are more concerned about solving specific problems and will take the time to research manufacturer’s web sites on the internet to determine what equipment will solve their A/C problems, in turn, making them more comfortable at home.

Home owners who do their home work and know the products we are selling are smarter and more inquisitive than in the past. They take the time to research all of the brands to see what the equipment capabilities are and if it will do what they want. Homeowners concerned about costs and in search of their best price have no idea of what is involved in the modification of their old equipment or the installation of their new equipment. They are not receptive of the costs for newly required code changes. These costs are mandated by the 2000 International Energy Conservation Codes and new local codes. The contractor’s risk for ignoring the code requirements in order to give the customer a lower price is the loss of his A/C license. The home owner’s risk is that if he or she has an insurance claim in the future without a permit and inspection on file with the city, the insurance company may deny the claim. A/C contractors have all given a bid to someone over the phone because a potential customer insisted on a “ball park figure they will not hold us to, because they just need a cost for planning”. When we were called to do the work, we found the project to be huge with no access and would not meet code. No wonder they insisted on a phone price, they did not want you to see what would be involved in the project. At this point in the process we found the customer not to be very understanding when we would not honor the telephone estimate. Back to the equipment, the homeowners are smarter about air conditioning theory and the equipment involved because they have been visiting the manufacturers’ web sites. The manufacturers have been telling them on the web sites to find a NATE Certified contractor who is a member of ACCA and is Energy Star certified. (see notes below)

Many customers are beginning to ask when calling a contractor if they are an ACCA member, are they NATE Certified and if they are Energy Star certified. We see this trend in our office.

Often contractors recommend replacing several components because the old equipment is at the end of its life and is costing the customer far more to operate than new equipment. Replacing one old piece of equipment and leaving another does not serve the customer well. We always recommend more efficient systems just for the savings in operating costs. Sometimes we are told “that is too expensive”. When the customer replaces some of the equipment but not what was recommended, he may not solve the problem. The customer is not receiving the full amount of his or her investment. A good example would be, the U.S. Dept. of Energy which cites: nationwide 90% of the homes have leaks in their ducting. Of those leaking ducts, the amount of leakage is 25% to 45%. The conclusion is, if your A/C system is sized correctly and you loose from 25% to 45% of the air, the system will not cool and dehumidify your house properly. Especially if an expensive SEER 16 system is installed with a 45% duct leak, the system will be working at approximately a SEER 8 for an energy usage level (we have not seen SEER 8 since the 1960’s). An expensive system can be degraded to work no better than the old system just removed. Old duct systems should be leak checked before installing any new system to insure its’ proper and efficient operation. A properly designed and installed system should work well and be less costly than the old system removed.

North American Technician Excellence, Inc. (NATE) is an organization dedicated to educating and testing Air Conditioning Service Technicians in the Air Conditioning and Refrigeration field. By testing and earning the NATE certification, air conditioning companies and technicians are able to display their proven skill levels to the public. WWW.NATEX.ORG

Air Conditioning Contractors of America, (ACCA) is an organization that serves as a liaison between the manufacturers and the Air Conditioning Contractors. They provide training and education for technical resources and industry standards. They help to promote member contractors with business and marketing tools as well as serving as a catalyst in networking between contractors (peer networking). ACCA has on line information and provides many technical books and software for the successful contractor. ACCA sponsors many classes in technical and business training (bookkeeping and cost analysis of services). Its’ mission is to assist and promote professionalism in the air conditioning and refrigeration industry.

WWW.ACCA.ORG

Energy Star is a dynamic government / industry partnership to identify and promote energy-efficient products to reduce greenhouse gas emissions. In 1992 the US Environmental Protection Agency (EPA) introduced ENERGY STAR as a voluntary program for the manufacturers to label their qualifying products so consumers can choose more efficient products. Air Conditioning Contractor that use and are familiar with Energy Star products can be listed as a certified contractor. This listing is on the ACCA “find a contractor” link by area. Each certified contractor will have the Energy Star logo shown below his name and telephone number.

WWW.ENERGYSTAR.GOV

U.S. Department of Energy has great articles on air conditioning efficiency and duct leakage.

WWW.DOE.GOV

Patrick Clayton
Clayton Air
Galveston Island