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How to Price a HVAC Installation Job

The easiest way to understand pricing is to picture a job like a pie.

Let’s use a $10,000 HVAC installation as the example and break it down piece by piece.

Step 1: Start With the Full Job Price

You sell the job for $10,000.

That money doesn’t all go to the business.
 It gets split up to pay for the job, run the business, and (hopefully) make a profit.

Step 2: Pay for the Job Itself (COGS – 55%)

The biggest slice of the pie is the cost to actually do the job.

That’s called COGS (Cost of Goods Sold).

In this example:

  • 55% = $5,500

     

This pays for:

  • Direct labour (installers and the sales effort to win the job)
  • Materials, parts, and equipment
  • Superannuation
  • Performance or bonus pay
  • Hire gear or machinery
  • Subcontractors
  • Any other direct cost needed to complete the job

     

👉 If the job runs over time or isn’t efficient, this slice grows — and something else shrinks (usually profit).

Step 3: What’s Left Is the Gross Margin (45%)

After paying the job costs, you’re left with:

  • $10,000 – $5,500 = $4,500

This is called gross margin.

Think of this as the money left to:

  • Run the business
  • Make a profit

But this $4,500 still isn’t yours yet.

Step 4: Pay to Run the Business (Overhead – 35%)

Next, the business has to pay its ongoing costs.

In this example:

  • 35% = $3,500

     

This covers things like:

  • Office staff wages, payroll tax, and super
  • Uniforms
  • Fuel and tolls
  • Phones, internet, and computers
  • Insurance (workers comp, vehicles, business)
  • Rent and electricity
  • Vehicle finance and maintenance
  • Tools and repairs
  • Marketing and advertising (to win the job)
  • Training and development
  • Safety equipment
  • Software and subscriptions (like brix)
  • Warranty after care support
  • All the everyday costs that keep the doors open

     

These costs exist whether you’re busy or quiet.

Step 5: What’s Left Is Your Profit (Net Margin – 10%)

After everything is paid, what’s left is:

  • 10% = $1,000

     

This is the net margin.
 It’s the actual profit.

This is what allows the business to:

  • Grow
  • Invest
  • Replace vehicles
  • Handle slow periods
  • Reward the risk of running a business
How to Price a HVAC Installation Job

Cost Breakdown of an HVAC Install Job ($10,000)​

Green net Margin 10% + Blue Overhead 35% = Gross Margin 45%

Putting It All Together (Simple Version)

Out of a $10,000 job:

  • $5,500 pays for doing the job (COGS)
  • $3,500 pays for running the business (Overhead)
  • $1,000 is real profit (Net Margin)
The Simple Way to Think About It
  1. First, pay for labour, materials, and parts
  2. Then, pay for running the business
  3. Whatever is left is profit

If any part is under-allowed for, the business suffers — even when work is flowing.

Why This Breakdown Matters

  • When you understand where the money goes:

    • You price jobs with confidence
    • You avoid underquoting
    • You protect profit
    • You build a stronger business

    This is exactly why brix shows pricing this way — so every job pulls its weight and the business can grow, not just stay busy.

Quick Summary

  • $10,000 job
  • COGS (55%): $5,500 to do the job
  • Overhead (35%): $3,500 to run the business
  • Net Profit (10%): $1,000 left over

Busy doesn’t always mean profitable.
 Clear numbers do.

Build better. Price smarter. Grow with brix.