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Ducted aircon system with text say Why Do Different Companies Charge More for Air Conditioning Services?

Written by Donna Wentworth

Last Updated: April 22, 2025

Why Do Different Companies Charge More for Air Conditioning Services?

Have you ever wondered why air conditioning companies charge such different prices for installation, maintenance, or repairs? You might get a quote from one company that seems like a bargain, while another company charges almost double for what looks like the same service. So, what’s going on?

If you’re confused about the price differences, you definitely have the right to be. Many homeowners and business owners like you struggle to understand why one company charges more than another. Does a higher price mean better quality, or are you just paying for a fancy brand name? And on the other hand, does a cheap price mean cutting corners?

At Lenergy, we believe in transparency and want our readers to see both sides of the coin.

Lenergy staff member standing in front of an outdoor split systems airconditioner unit

In this blog, you’ll understand the real reasons why prices differ in the air conditioning industry, what you should watch out for, and how to choose the right company based on value (not just cost!)

Factors That Affect Air Conditioning Pricing

When comparing quotes for air conditioning installation, maintenance, or repair, it’s essential to understand what goes into the pricing. Here are some key factors that influence costs:

1. Labour Costs and Technician Expertise

Not all air conditioning technicians are equally skilled or experienced. Companies that invest in highly trained professionals often charge more, but they also provide better service, ensuring your system runs efficiently and lasts longer.

  • Certified and experienced technicians: More qualified professionals demand higher wages, which affects the service price. However, they are less likely to make mistakes, reducing the risk of costly issues later.
  • Cheap labour: Some companies cut costs by hiring less experienced technicians, which can lead to improper installation or poor maintenance, potentially causing breakdowns sooner.

2. Quality of Materials and Equipment Used

The type of equipment and materials a company uses significantly impacts pricing.

  • Branded vs. generic parts: Premium brands often have better durability, warranties, and performance, but they cost more. Some companies use cheaper, low-quality parts to lower their prices.
  • Installation accessories: High-quality piping, insulation, and fittings contribute to the overall system efficiency but also add to the cost.

3. Business Overheads and Operational Costs

Running a reputable air conditioning business involves various operational expenses, which are reflected in the pricing.

  • Company reputation and warranty coverage: Established businesses with strong reputations often charge more because they provide reliable after-sales service, extended warranties, and customer support.
  • Insurance and licensing: Legitimate companies invest in insurance to protect customers in case of damages or accidents. Those that operate without proper coverage might offer lower prices but come with higher risks.
  • Office and service fleet costs: Companies with a physical office, service vehicles, and advanced diagnostic tools have higher expenses, which are built into their pricing.

These factors explain why some companies charge more than others. However, does a higher price always mean better service? 

Lenergy staff member installing a ducted airconditioning unit

The Difference Between Cheap vs. Premium Services

It’s tempting to go for the cheapest quote when installing or repairing your air conditioning system, but does a lower price really mean better value? Here’s a closer look at what you’re actually paying for when you choose a premium service over a budget option.

1. Risks of Choosing the Lowest Price

Opting for the cheapest air conditioning service may seem like a smart financial move, but it can come with hidden risks:

  • Lower-quality workmanship – Less experienced or uncertified technicians may cut corners, leading to improper installation or repairs that fail quickly.
  • Shorter system lifespan – Cheap components or poorly installed units often wear out faster, leading to costly replacements or frequent breakdowns.
  • Limited or no warranty – Low-cost companies may not offer strong warranties or after-sales support, leaving you with additional expenses if something goes wrong.

2. What You Get with Higher-Priced Services

When you pay more for air conditioning installation, maintenance, or repairs, you’re often investing in:

  • Experienced and certified technicians – Ensuring the job is done right the first time.
  • High-quality parts and materials – Leading to better energy efficiency and longevity.
  • Comprehensive warranties and aftercare – Giving you peace of mind that your investment is protected.
  • Proper system design and load calculations – Ensuring your air conditioner is the right size for your space, preventing inefficiencies and unnecessary costs down the line.

While a lower price may look attractive upfront, it can end up costing more in the long run due to frequent repairs or early replacements. That’s why it’s essential to look beyond the price tag and consider the overall value.

Hidden Costs to Watch Out For

When comparing air conditioning quotes, the cheapest option isn’t always the best deal. Many companies lure customers in with low initial prices, only to add extra charges later. Here are some hidden costs to be aware of:

1. Call-Out Fees and Diagnostic Charges

Some companies advertise low prices but charge separate fees for diagnosing a problem or even just visiting your property. Before committing, ask whether the initial quote includes call-out and diagnostic fees.

2. Low Initial Quotes with Add-Ons Later

A company may quote a lower price upfront, only to add extra costs later for essentials like:

  • Electrical work – Some companies exclude necessary wiring and circuit upgrades from their initial quote.
  • Ductwork modifications – If your system requires changes to existing ducting, some providers might not include this in their estimate.
  • Refrigerant top-ups – Some companies charge separately for refrigerant refills, even though it’s essential for a functioning system.

3. Cheap Parts Leading to Future Costs

Some installers use lower-quality parts to cut costs, which may result in:

  • Higher energy bills – Less efficient components can cause your system to work harder.
  • Frequent repairs – Cheap materials may wear out faster, requiring replacements sooner than expected.

How to Avoid These Hidden Costs

  • Always request a detailed quote.
  • Ask what is (and isn’t) included in the price.
  • Choose companies with transparent pricing and warranties.

Understanding these hidden costs helps you avoid surprises and ensures you get the best value for your money.

Lenergy team photo located at their warehouse in the Southern Highlands

How to Choose the Right Air Conditioning Company

With so many options available, how do you ensure you’re choosing a company that offers the best balance of quality and price? Here are some key factors to consider when selecting an air conditioning service provider:

1. Check Certifications and Warranties

A reputable company should have the necessary certifications and offer strong warranties. Look for:

  • Industry certifications – Ensure the company follows legal and safety standards.
  • Manufacturer accreditations – Some brands only approve certain companies to install their systems, which can mean better warranties and service.
  • Workmanship warranties – A good company will back their installation and repair work with a clear guarantee.

2. Understand Pricing Transparency

Choose a company that provides upfront pricing to avoid hidden costs. Ask for:

  • Clarification on whether additional work (such as electrical modifications) is included.
  • Confirmation that post-installation support is covered in the cost.
Lenergy office staff at office located in Moss Vale, NSW

3. Read Reviews and Testimonials

Customer feedback is one of the best ways to judge a company’s reliability. Look for:

  • Google and Trustpilot reviews – Companies with consistently high ratings are likely to provide good service.
  • Case studies and testimonials – Some providers showcase real customer experiences, giving insight into their work quality.
  • Red flags – Repeated complaints about poor workmanship, unexpected costs, or bad customer service.

By choosing a company with the right qualifications, transparent pricing, and strong reviews, you can ensure you’re getting the best value for your investment.

Making an Informed Decision

When it comes to air conditioning installation, maintenance, or repair, price alone doesn’t tell the whole story. While some companies charge more, it’s often because they provide better-quality workmanship, premium materials, and long-term reliability. On the other hand, opting for the cheapest service could lead to hidden costs, poor efficiency, and frequent repairs—costing you more in the long run.

To make the best choice, focus on value rather than just price. Look for a company that:

  • Employs certified and experienced technicians
  • Uses high-quality parts and equipment
  • Offers transparent pricing with no hidden fees
  • Provides solid warranties and aftercare support
  • Has positive customer reviews and a strong reputation

By choosing wisely, you ensure that your air conditioning system is installed and maintained correctly, keeping your home or business comfortable and energy-efficient for years to come.

The team at Lenergy receiving a local business award in the Southern Highlands for Business of the Year,

At Lenergy, we believe in providing high-quality air conditioning services at fair, transparent prices. Our certified technicians, premium products, and commitment to customer satisfaction set us apart. Whether you need installation, maintenance, or repairs, we deliver reliable solutions with no hidden costs.

Get a quote today and experience the Lenergy difference. Contact us now to discuss your air conditioning needs.