About 82% of small businesses fail because of cash flow trouble. If you’re trying to keep your business afloat, budgeting and penny-pinching as probably become some of your best skills.
But no matter how much you save, there’s always something else you have to pay, and your energy bill is a big money-sucker. This might make you ask, “Am I spending too much on my heating and cooling costs?”
We’ve put together this guide to show you how much money you should be spending on your commercial HVAC system and why you can’t go without it.
Keep reading below to learn some helpful tips!
Is Spending Money on an HVAC System a Necessary Expense?
Running a business is expensive, so you might be looking for every opportunity to cut corners and save some money. Your HVAC system shouldn’t be one of those opportunities.
Refusing to turn on your HVAC system is a big mistake.
First of all, everyone in the office will be miserable, including you. More importantly, keeping your HVAC system turned off can actually make you lose money. No customer wants to walk into a stifling building in the middle of summer to do some shopping or learn more about your services.
You will lose them to your competitors instead.
If the inside of your office is too hot or cold, it can also have a negative impact on your employees’ productivity. Your employees will work slower and make more mistakes if they aren’t comfortable, which can ruin your bottom line. It’s worth keeping the HVAC system going to improve your business growth.
How Much Money Should You Spend on Your Commercial HVAC System
There’s no one-size-fits-all answer to this question. The amount of money you’ll spend on your HVAC system every year depends on a number of factors, including things like:
- The size of your building
- Where you live (you might not need to run the HVAC unit at all during some seasons)
- The age of your unit
- The type of unit you have
Older units require more energy to produce the same amount of heat or conditioned air as newer units. Some models are also more energy-efficient than others, which can help you save money in the long run.
Despite these things, there are a few expenses you can count on when it comes to your HVAC system. Here’s a closer look at some estimates.
Do you need to replace your entire HVAC system with a new unit? Did you move your business into a building that doesn’t have an HVAC system yet?
Then you can expect to pay about $12,000. However, if you own a large building, that price will continue to go up, especially if you need to install ducts.
Before you schedule an installation, make sure you’re hiring the right company. Commercial HVAC systems are different than residential systems, so you need to ensure the HVAC technicians you get know how to handle commercial units. And keep in mind, every company will charge different HVAC service costs to cover labor, so it’s a good idea to shop around.
You should schedule at least two maintenance appointments for your HVAC unit every year, one during spring and one during fall. This will ensure your unit is ready to deal with the hotter or colder temperatures so you don’t have to deal with breakdowns or repairs in the middle of extreme weather.
There’s nothing worse than being stuck with no HVAC system in the middle of a heatwave or a snowstorm.
Some companies charge a flat rate for commercial HVAC services like these, which is usually between $100 to $200 for the entire thing. Other companies charge an hourly fee. The average for most HVAC technicians is between $75 to $150, and maintenance appointments tend to be about two hours long.
Don’t skip these maintenance visits. Otherwise, the unit will take more wear and tear and develop more serious problems. The amount of money you’ll spend to get your unit working again will be more than what it would have cost you to perform regular maintenance.
You never know when unexpected repairs will pop up with your HVAC system. You should always budget for at least one or two repairs a year, even if you don’t end up using them.
Unfortunately, it can be difficult to put a price tag on HVAC repairs without know what they are. Because of this, it’s hard to predict what you’ll have to pay if something goes wrong.
That said, the average furnace or AC repair costs somewhere between $150 to $450. To stay on the safe side, it’s a good idea to plan for two, $400 repairs a year. This way, you won’t be hit with surprise expenses you can’t afford later.
Daily Heating and Cooling
Don’t forget to account for the daily costs you’ll have to pay to run your HVAC system. Again, because your energy bill will depend largely on the size of your building and the local weather, it’s hard to estimate this price. However, you should plan to spend about $2.14 per square foot for heating and cooling.
Find the Right Commercial HVAC Services for Your Needs
A commercial HVAC system isn’t something your business can go without. However, you shouldn’t blindly throw money at it either. Putting together a budget will help you control your energy bill and know where your money is going at the end of the month.
Do you think your HVAC unit needs a tune-up or a repair?