Whats the real cost to install HVAC

[Ram V.]

Trying to figure out the “real” cost of installing a new central AC unit and replace existing old furnace.

This is in San Jose, CA

Home is 1600 sq ft - 2 story

Got quotes that range from 8.5k to 15k

I guess the need is a 3.5 ton compressor and a 2 stage energy efficient furnace. Doesn’t sound too complicated. All ducts and electrical are in place

My budget is around 6k

Please help me get an idea of cost, best brands or share referrals for HVAC contractors.

A bit of research shows that the equipment needed including compressor, furnace, tubes, etc comes to around 3k. So why do theses HVAC contractors charging more than 8k for parts and installation?

Am I missing something ?

Thanks in advance

[Matthew Paul]

@Ram V. It doesnt matter how much the equipment costs the contractor . Its what the market will bear . There are lots of rules , regulations ,permits ,warranty , certifications to be a HVAC contractor , plus labor costs are high as are the costs of running a business . Plus that pesky thing called profit . 

But as a rule of thumb , material cost times 3 . So if the retail costs of materials are $3000 , its a $9000 install . If everyone is busy you will pay more .