Why HVAC Prices Are So High
Something is happening to local service businesses that I think more homeowners should know about.Private equity firms and large investment groups have been buying HVAC, plumbing, electrical, roofing, and other home-service companies across the country.Sometimes the company keeps the same name. The same trucks may still be driving around town. From the outside, it can still look like the local company you’ve known for years.But the business behind that name may be very different.When an investment firm pays a large amount of money to acquire a service company, that investment has to generate a return. That can mean higher prices, aggressive sales goals, financing, memberships, and increased pressure to turn every service call into as much revenue as possible.A repair that an independent contractor might price based on the part, the labor, overhead, and a reasonable profit can look very different when the company has layers of corporate overhead and investors expecting a return.There’s nothing wrong with a business making a profit. We all have to make money to stay in business, pay our bills, warranty our work, and take care of our customers.But there is a difference between a business being profitable and a business being engineered to maximize the revenue extracted from every customer.That’s one reason I believe locally owned, independent contractors still matter.When you hire a true local owner-operated business, you’re often dealing directly with the person whose name, license, livelihood, and reputation are attached to the work. There aren’t shareholders or an investment fund sitting several layers above the technician demanding a particular return.So the next time you call a company you’ve known for years, it may be worth asking one simple question:“Is this company still locally owned?”You might be surprised by the answer.Support local businesses. Get second opinions. And when you’re facing an expensive repair or replacement, don’t be afraid to ask questions about what you’re actually paying for.