If you’ve purchased anything from a retailer or equipment dealer in recent months, you’ve likely been sticker shocked by rising prices on everything from gallons of milk to home appliances. Inflation is causing belts to tighten all across the country, and it’s likely to impact major purchases for your home, such as a new HVAC system, in the near future.
Inflation is an increase in the price of goods while experiencing a fall in purchasing power value. Buying the same goods and services you did before simply costs more. The cost of materials that manufacturers use to create new HVAC systems and equipment has also risen dramatically, as have related costs of manufacturing and transporting these goods across the globe.
Between rising fuel prices, higher cost of raw materials, and COVID restrictions making travel and transportation more difficult, these additional costs have to be absorbed somewhere. Labor shortages have also played a role in supply chain challenges, with longer manufacturing and shipping times driving costs up even further. This will inevitably impact the cost of HVAC goods and services you may need in the near future.
Regularly scheduled price increases happen twice yearly in the HVAC industry. The beginning of the year marks the release of new models and innovations in the field; these units are typically higher in price than old models. A second price hike occurs in the summertime, when demand for these products is higher, as people will pay more to keep their homes comfortable. Even with these planned price hikes, industry insiders and consumers are seeing higher-than-normal price increases that are happening more frequently.
The US Bureau of Labor and Statistics reports that the cost of raw materials has risen by nearly 40% in the last year. Raw materials used to manufacture HVAC systems include:
Refrigerant costs have also spiked, with a need for environmentally friendly replacements making it difficult to supply and purchase Freon for older models. If it costs more to create a system, a customer will inevitably have to pay a higher price to cover the cost of materials, labor, and transportation.
Consumers must evaluate whether a new system is needed in light of these price increases. As the future of production and transportation is uncertain, it may be time to consider purchasing now, rather than waiting and risking an even bigger price increase should we experience ongoing shortages and supply chain issues.
You have options for purchasing HVAC equipment that can ease the burden of an upgrade. Consider taking advantage of one of these opportunities, particularly if your system is in regular need of repair or it has stopped working altogether.
Older inventory that has not been previously used can be a cost-effective option for upgrading your system. Buying something that is one or two years old could yield significant savings when compared to a new unit that is just rolling out of production.
If you know you’ll be in the market for a new HVAC system soon, why not consider installing one in the off-season? Not too many people shop for air conditioners in the dead of winter; you can take advantage of seasonal rebates that can shave a few dollars off this significant purchase.
While it’s nice to be able to pay cash for important purchases, such as an HVAC system, it is not always possible to budget such a large purchase at one time. Many HVAC companies offer in-house financing options that make purchasing affordable and convenient.
At Homesense Heating & Cooling, we’re doing all we can to keep homes comfortable in Indianapolis and the surrounding area. We provide comprehensive heating, cooling, and indoor air quality services, and we also provide home sale inspections. Our goal is to offer our valued customers with solutions that exceed expectations. Contact us today for a service or purchase you can feel truly good about! We serve Indianapolis and Fishers residents.