We're on call when you need us!
Greeley Furnace Co. LLC
Serving Weld County
Ben Hitchcock - Owner, Greeley Furnace Co, LLC

The History of HVAC
Current Conditions
Caveats
Consumer Questions
Conclusion


The History of HVAC

In order to understand what is currently happening in the HVAC (heating and cooling) business in Northern Colorado, a little history of what has occurred in the business over the past 15 years is necessary.

Prior to the mid- 1990's, successful HVAC companies in N. Colorado, as well as nationally, were primarily family owned businesses that reliably featured expertise, experience, and competence. However, after the mid- 1990's the CONSOLIDATORS (venture capitalists, large utility companies, and large HVAC service companies) attempted to dominate not only the HVAC business in N. Colorado, but also the business nationally, by purchasing all the successful family owned businesses. This attempt eventually failed, but in the process it forced many longtime HVAC businesses to downsize to the point of being mere skeletons of their former selves. What is more, the CONSOLIDATORS not only wasted a lot of money, but in their failed attempt to monopolize the HVAC business in N. Colorado, they did succeeded in fragmenting the business, in many instances to one-man shops.

In addition to fragmenting the HVAC business in N. Colorado, the CONSOLIDATORS also destroyed the very successful, very workable long-standing partnership between the manufacturers and their local authorized dealers. This was accomplished by the CONSOLIDATORS using their purchasing power to force the manufacturers to grant them price reductions, which in turn eliminated the relationship the manufactures had with their authorized dealers that covered advertising, warranties, and service. As a result, the manufacturers now found themselves in a situation that demanded they find another way of doing business because the CONSOLIDATORS had succeeded in wrecking the successful manufacture/authorized dealer relationship that heretofore had guaranteed a quality product, competent installation, reliable warranty/ post-warranty service, and a reliable supply of parts.

Thus, the manufactures turned to outlets like Sears and Home Depot to handle their product and marketing programs. They also relied upon insurance companies to subcontract their warranty service, which too many times was performed by a 'handyman'. They even went to the Internet to sell their equipment directly to the customer or the incompetent handyman.

Unfortunately, this method of doing business was doomed to failure because the manufacturers were now loosing large sums of money (at this juncture practically anyone could become a HVAC contractor in N. Colorado) due to questionable subcontractors, shoddy installations, warranty problems, poor service and, as a result, the loss of consumer confidence.

Current Conditions

Today, high school students with little or no knowledge of HVAC can be found selling HVAC equipment in places like Sears and Home Depot. Furthermore, utility companies, insurance companies, and other large retail stores have joined in the hunt for the unsuspecting consumer's HVAC dollar.

This current state of affairs, as with the attempt to monopolize the HVAC business during the mid- 1990's, is also doomed to failure because the expertise, experience, reliability, and the solid relationship and understanding between the manufacturers and authorized dealers is no longer in force. Indeed, we believe at Greeley Furnace Co. that discerning HVAC customers may consider foreign manufacturers -- who sell exclusively to competent dealers -- for their HVAC needs.

Moreover, as things stand today, anyone can buy brand name equipment and anyone can attempt to install it because there isn't a state-licensing requirement in the HVAC trade (unlike electricians and plumbers) in Colorado. Worse, serious safety issues can arise from the following:

Caveats

Greeley Furnace Co. believes that someone in the market for a new furnace should never assume that:
  1. There is a high level of competence in a given HVAC company
  2. All companies pull permits
  3. All companies do work that meets code
  4. All companies do work that is safe
  5. All companies have some level of quality
  6. All companies not only have service technicians, but they are well trained
  7. All companies have service available 'after hours'
  8. All companies have employees, as opposed to 'subcontractors'
  9. All companies are insured (liability, workman's comp, etc.)
  10. A given company is in fact factory authorized for the equipment it sells
  11. A given company has a history in the business (Sixty HVAC contractors have come and gone in the Greeley area over the past five years)
  12. A given company's employees can be left alone in your home
  13. All companies know how to size equipment
  14. All companies are equal in education
  15. All companies have EPA certifications
  16. All companies use procedures that are environmentally friendly (like the safe reclamation and disposal of refrigerates and mercury)


Consumer Questions

In light of the foregoing caveats, where should the HVAC customer go for reliable information about a given company? The Greeley Furnace Co. urges any potential customer to do the following:
  1. Use the above list of caveats as a basis for asking a given company direct questions
  2. Consult the Better Business Bureau
  3. Consult the local building inspection department
  4. Ask a company for references and then call those references
  5. Ask for insurance certificates
  6. Ask for proof of education and experience
  7. Ask for the equipment manufacture's authorization of a given company
  8. Check out the dealer's Website.


Conclusion

In conclusion, the destruction of the manufacturer/authorized dealer relationship that existed prior to the mid-1990's has led to a fragmented market structure that doesn't begin to guarantee the level of quality, service, experience, and competence that the consumer could formerly take for granted. Today, anyone who can pass the City of Greeley's HVAC test (there is no limit on the number of times a person can take it in order to pass) can acquire a license and open up shop. Furthermore, such a subcontractor doesn't need a factory authorization to acquire equipment, provide any kind of service, or replace parts. Obviously, from the discerning consumer's viewpoint, this kind of arrangement shouldn't promote a lot of confidence in a given HVAC contractor.

Therefore, Greeley Furnace urges all discerning HVAC consumers to follow the caveats and suggestions listed above. Now, more than ever, the ancient Latin phrase -- Caveat Emptor (Buyer Beware!) -- should be heeded.