Where does the money goes to when you buy an Aircon system?

Have you ever wonder where the money goes to when you buy an Aircon System? Is there a correct price for your aircon installation? Let us hoot you up with the cost analysis.

 Based on an apple to apple comparison, take for example a Daikin system 3 that cost an average of SGD 3300 in the market. The equipment take up about 70% of the cost and material cost take up about 13.5% of the cost. The only variable would be the labour and workmanship provided by the AC installer.

Not forgetting, this includes the transportation and the 2nd trip down for testing and commissioning for most homeowners who engage an Interior Designer for renovations. This is because the IDs would usually recommend going down the first-time round to lay the pipes, insulations, electrical wiring and the second time to put up the AC unit after all painting and box up is done.

This would have already taken up 85% of the total cost you are paying for. 

The remaining will be paying for the labour and workmanship, it would only be left with 15% margin for a 1.5 days job using 2 manpower and 1 vehicle. So, if another contractor that comes to you and offer you SGD 3000, this would mean that they would only be left with 6% margin for labour and workmanship. Risky? Yes, I would like to think so as they would try to cut corners and scrimp on materials to get more cost savings.


So, what is the most important component you should be paying for your AC installation?

Labour and Workmanship, the base of the pyramid, this is the most important factor when you make your choice for purchasing an AC system. This greatly affects your lifespan of your AC system and the future problem that you might faced if not properly done. Example, leaking of FCU due to poor drainage installation, noisy compressor due to dirt in piping, condensation due to air gap in the aircon insulation. If an installer cannot tell you the steps of installation properly, you better think twice before engaging them!

Piping & Material, using reputable brand and better specification of materials helps to make your AC system last better. (We will do a post on type of materials in SG) Most brands in the market generally comply to the standards required, so the one point to take away is to make sure your AC installer NEVER reuse leftover materials. They may use leftover materials to join up together as the main pipe, this increase the possibilities of leak and condensation if not properly done. So, avoid this at all costs.

Equipment would be the last consideration that make sure your AC system last longer. AC manufacturers in the market has certain level of reputation and standard in their manufacturing process. Thus, the more important choice during selection of your AC system is to go with the brand establishment and service they provide in Singapore. Every country has strong hold of their favourite brand, and in Singapore, I would say is Daikin & Mitsubishi.