@Ross Bernard, you missed my point regarding the shirt from Walmart. You can change it to whatever retailer you want... they will mark their product up more than just 10-15%. There are other items, such as jewelry, that get marked up 600-900% all the time!
That's a good point previously made about automotive parts. You can go down to the automotive store (if you know what the problem is) and buy the part yourself and install, or you can take your car to the shop where they are going to charge you labor and mark the part up substantially; you are paying a higher price on the part for convenience and for the technician knowing what part needs to be replaced.
Also, did your HVAC guy say that HIS cost was $700, or did he tell you it would cost YOU $700? That makes a big difference. If he told you "my cost is $700, I'll pass it along at cost and just charge you for labor" then THAT would be a dishonest statement and I could understand you being upset. He was simply marking up his product... a percentage that you don't think is reasonable.
Also, I may have missed it, but I didn't see your response regarding the diagnosis: Did he make a service call and come see your unit, or did you only discuss it over the phone?
We haven't seen your actual review, so possibly you only expressed your disappointment in being quoted a marked up product rather than accusing the contractor of being dishonest. I hope that is the case.