How to Buy a Furnace Without Getting Ripped Off

HVAC contractors mark up equipment 40–80% above wholesale cost. On a typical furnace installation, that markup alone can be $800–$1,500. Here's how to stop overpaying.

How the HVAC Markup Game Works

When you call an HVAC contractor, they quote you an "installed price" that bundles equipment and labor. The problem: you can't see what they paid for the equipment. Most homeowners have no idea a Goodman 96% AFUE furnace wholesales for $650–$900 but gets installed for $3,500–$5,000.

5 Ways Contractors Overcharge

1. Equipment markup: Buying at wholesale and selling at 50–80% above cost.
2. Unnecessary upgrades: Pushing 97% AFUE when 95% won't pay back in your lifetime.
3. Oversizing: A bigger unit means a higher invoice, even when it's wrong for your home.
4. Brand premium upsell: Steering you toward Carrier when Goodman uses similar components.
5. Service agreement bundles: Adding maintenance contracts you don't need.

How to Buy Smart

Supply your own equipment: Buy the furnace factory-direct through Furnace Direct, then hire a local installer for labor only. Labor typically runs $800–$1,500 for a standard swap. Total cost: often $2,000–$3,000 less than a full contractor quote.

Get 3 itemized quotes: Require contractors to break out equipment cost vs. labor. Most won't — that's a red flag. The ones who will are the honest ones worth hiring.

Know your equipment cost first: Before calling anyone, look up factory-direct prices at Furnace Direct — use these as your benchmark.

Questions to Ask Every Contractor

• What brand and model are you installing, and what is the equipment cost separately from labor?
• Why this efficiency level for my specific home?
• What size furnace and why?
• Is this the final price, or are there add-ons?

A contractor who won't answer these questions directly is not working in your interest.

See factory-direct Goodman furnace prices at Furnace Direct — know what you should actually pay before you call anyone.