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Why AC is cheap, but AC repair is a luxury

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Re: Why AC is cheap, but AC repair is a luxury

#2
One interesting consequence of this is that your opportunity cost is now highest it's ever been. By choosing to post on Hacker News instead of spending my time better (perhaps even as simply as watching my daughter sleep) I am wasting more value than ever before. In days past, you were substituting something mindless for this. Today, by not spending your time with your family, or reading, or on your hobby or relaxing you are paying an ever more valuable slice of time on addictive social media like this.

Re: Why AC is cheap, but AC repair is a luxury

#3
There is a simpler explanation - HVAC jobs are directly influenced by the push to covert everything to heat-pumps. And good heat-pumps are expensive. So when you install a $15K to $25K, installation fee also goes up. I am surprised Solar isn't up there. Panels are cheap, install is what we pay for 10 years+

Re: Why AC is cheap, but AC repair is a luxury

#4
post #3

There is a simpler explanation - HVAC jobs are directly influenced by the push to covert everything to heat-pumps. And good heat-pumps are expensive . So when you install a $15K to $25K, installation fee also goes up. I am surprised Solar isn't up there. Panels are cheap, install is what we pay for 10 years+

An AC is a heat pump too.

Re: Why AC is cheap, but AC repair is a luxury

#5
post #3

There is a simpler explanation - HVAC jobs are directly influenced by the push to covert everything to heat-pumps. And good heat-pumps are expensive . So when you install a $15K to $25K, installation fee also goes up. I am surprised Solar isn't up there. Panels are cheap, install is what we pay for 10 years+

An AC is a heat pump too.

A Heat pump is just AC with more valves.

Re: Why AC is cheap, but AC repair is a luxury

#7
That's a lot of economic theorizing, but to me, it doesn't seem to be substantiated all that well.

You can just as well argue that labor is getting more expensive in the West because of two non-market pressures. First, we have a multitude of government programs that seek to eliminate extreme poverty, so there are fewer people who are desperate to take any job for any money. Second, you have consumer protection policies that make it genuinely expensive to, say, be a HVAC repairman. Educational requirements, permits, licensing, business insurance, waste disposal, etc.

On my neighborhood Facebook group, every time someone asks for recommendations for menial, minimally-skilled backyard labor, they always insist the person needs to be licensed, bonded, and insured. And then, they're surprised that it costs $10,000 to paint a fence.

Re: Why AC is cheap, but AC repair is a luxury

#8
post #3

There is a simpler explanation - HVAC jobs are directly influenced by the push to covert everything to heat-pumps. And good heat-pumps are expensive . So when you install a $15K to $25K, installation fee also goes up. I am surprised Solar isn't up there. Panels are cheap, install is what we pay for 10 years+

An AC is a heat pump too.

I don't know what the deal is about people saying heat pumps are expensive. They used to be a little pricier than AC units, but it's just a 4-way valve in addition to one.

I just looked it up, and I can buy a heat pump for 200-400 euros (depending on desired output), installation is ~400 euros. Why are you paying 20-30x for something identical? This sounds like a price difference created by government behavior, like with solar panels and related hardware which seem to be significantly overpriced in north america.

Re: Why AC is cheap, but AC repair is a luxury

#9
post #3

There is a simpler explanation - HVAC jobs are directly influenced by the push to covert everything to heat-pumps. And good heat-pumps are expensive . So when you install a $15K to $25K, installation fee also goes up. I am surprised Solar isn't up there. Panels are cheap, install is what we pay for 10 years+

It's not even that. It's that rich people are the only thing the trades are catering to now. https://www.youtube.com/watch?v=qT_uSJVCYds

Example of a solar install that was under $20k via DIY - maybe took this guy 1-2 weeks of full-time work. But he was quoted $90k and he did most of it himself - only hiring a backhoe operator to move some dirt around.

We're at the point where the trades are only going to cater to rich/desperate people because the margin they'd make on a job that is DIY-able (and charged a fair price) is not worth it to them. Why do 5-6 low margin jobs when you can do 1 high margin (rip-off) job? Your only competition out there is someone with the will to do it. Builders in CA are massive ripoffs as well.

I think the only way you bring costs from trades down is by having all your workers in-house - which is only doable for corporations. Your average homeowner is just fucked and is gonna have to youtube everything.

Re: Why AC is cheap, but AC repair is a luxury

#10
Just had our minisplit develop a leak after 7 years.

The shop recommended replacing it, as just the refrigerant is half the price of a new one if most has to be replaced, due to environmental taxes.

Basically a repair is guaranteed to be at least 50% of new price of NOK 23k ($2.3k) installed and can quickly approach 80+% if the guy has to spend time on it.

That made me wonder how on earth they make money on selling these things. And how effective that tax was, given it's pushing us to replace a unit that's probably fine for many more years with just a bit of TLC.

edit: fixed pricing brain fart

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