First I would like to thank all our many customers who we have served these past several months. Since our last article(March), we have been blessed with an abundance of work. However, as we switch seasons to the fall and winter, I thought I would take this chance to help educate you the customer to some of the promotional opportunities you will have presented to you.

First let's talk about rebates. You will see adds saying "buy a brand new system and receive a rebate of $1200(give or take). Sounds good doesn't it. But as your parents always told you, "if it sounds too good to be true, then it probably is too good to be true". There are two hidden truths you need to know. First, to get these high rebates, you will need to buy the manufacturers top of the line equipment. Most standard systems have a single stage of heat and a single stage of cooling. The systems that qualify for the highest rebates usually have two stages of cooling and multiple stages of heating. These systems on average can cost you 50%-100% over the cost of a new standard system. The problem to you the homeowner is that there is not enough energy savings over a newer standard system to justify the additional cost for the manufacturers top of the line equipment. Secondly, I the dealer pays for half the rebate. For example, if we install a system that does qualify for a $1200 rebate from the manufacturer, the manufacturer will send you a check for $1200 and me a bill for $600 for my part of the rebate. My question to you the homeowner is simply, do I take that $600 bill from my profit or do I put it back in my estimate? I think most of you already know that if I wish to stay profitable, I have to add that $600 into my bid. So the end result to you the homeowner is that your $1200 rebate is really only worth $600.

Now let's discuss free financing. One of the major manufacturers will have an offer out that says 36 months no interest. And technically that is true. If you pay the bill off in time, there will be no interest. The untold truth is the upfront cost that is built into the bid to start with. The finance company that this manufacturer uses is charging close to 16% to finance your loan. Of this, the manufacturer is picking up half the finance cost. I the dealer am responsible for the rest. In short, I have to add $8 dollars for every $100 just to cover the finance charge. So as you can see, sometimes free is not free.

My advice to all homeowners is to plan ahead. The best money to borrow is your own. Average lifespan of a standard heat and system is between 12-15 years. Obviously, some can and will last significantly longer. However, many of you are in the homes you are going to retire in, or at the very least, the home that you will be in until your kids have left home. Take my advice and set aside some money every year just for the new heat and air system whenever that may be. The new heat and air system will be the largest investment you make in your home short of remodeling. No need to have to add to the cost because you need to finance.

As always, we are here to help you. If anybody needs some advice on a problem they are having, please feel free to use the "contact us" page to reach us. Until next time, take care and stay safe.