Why Do AC Prices Rise Every Year?

If you’ve ever set money aside for a new air conditioning system, only to discover that it now costs more than it did last year, you’re not alone. It’s only natural to wonder why that budget air conditioner you checked out last year costs so much more today. We’ve chosen five good reasons why new ACs cost more every year.

1. Increasing manufacturing costs:  Materials including copper and steel, and utilities such as the power consumed by production facilities, get costlier every year. With increasing manufacturing costs, AC companies have to recalibrate their selling prices as well.
2. Increasing installation costs:  AC installation costs depend on the current prices of certain materials, and more importantly, on labor rates and other logistics such as costs of uniforms, cellphones, office rents and utility bills. Not to be ignored here are the ever-increasing gas prices and insurance premiums, which also explains why your new air conditioner has a new price tag.
3. Expensive refrigerant:  Until very recently, Freon was the standard refrigerant used in all air conditioners. Today, EPA laws prohibit the use of Freon in air conditioners, on account of the damage it causes to the ozone layer. As such, air conditioning companies have recently had to completely redesign their products to make them compatible with the latest environment-friendly refrigerant – R410A.
4. Customer-focused services:  AC companies have to keep up with increasing customer demands, such as extended warranties and round-the-clock on-call service. As such, companies have to hire more technicians and pay them for working overtime.
5. High health insurance costs:  All companies must account for changing health insurance costs for all employees and their families, which means the cost of doing business is ever increasing.

Essentially, new air conditioning systems cost more every year because AC companies have to shell out more money to manufacture, install and service them. Need help figuring out how much your new AC will cost you, installation included? Don’t hesitate to give us a call and we hope you’ll still be pleasantly surprised.