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Furnace Reviews

Posted by woodbury (My Page) on
Sat, Mar 29, 08 at 14:33

Finding an honest furnace or air conditioner review is hard because everyone is biased in one way or another. I decided to write this furnace review to give my opinion with facts that I have accumulated over the years.
I have been repairing and installing furnaces and air conditioners for 21 years so I have a good amount of experience in the subject.
I have found that furnaces have evolved over the years to a point now where the manufacturers are offering a high quality product that will last many years. When high efficiency furnaces first came out, each manufacturer had its own idea on how to build a furnace and by trial and error they slowly worked out the problems to where now they are all are building a good furnace.
The furnace manufacturers actually just build the heat exchanger, cabinet, housings etc. They buy the circuit boards, motors, burners, controls, limit switches, draft inducers, pressure controls, gas valves, ignition controls, and hot surface igniters from the companies that build them like GE, Honeywell, White Rodgers, Robertshaw, etc.

You generally read comments about furnace brands that have a negative slant. This is because people who have had a bad experience tend to have the drive to tell the world about it while the people who are satisfied are content to leave it at that. The truth is every brand has to be repaired now and then and since the manufacturers who build the main working parts of the furnaces build them for every furnace manufacturer, I do not see a big difference in number of repairs from one brand to the next.

Then how should you choose which furnace brand to buy? It is important to purchase your furnace from someone you can trust to install it properly and who will back up the warranty if something should go wrong later on. I recommend that you try to buy locally so you are important to the business that you are buying from and not just another anonymous customer who does not matter. The manufacturers warranty is a big factor to look at. If the furnace does break in the future, you don't want to be stuck with a large repair bill. Today you can find lifetime warranties on heat exchangers and 10 years on all other parts. If they don't offer this warranty, keep looking because some do and it is better to let the manufacturer pay for the repair instead of you. After all if they spend all of that money on advertising trying to convince you to buy their furnace let them back it up with a good warranty!

Don't pay for your furnace over and over again with high gas bills. There are two somewhat standard efficiency ratings on furnaces that are sold today, 80% and 95%. You can think of the difference as being this: for every dollar that you pay your utility company for natural gas for your furnace, with the 80% model, 80 cents out of every dollar heats the house and 20 cents is wasted up the chimney. While the 95% efficiency model only loses 5 cents out of every dollar out the vent. So can see over time the amount of money you can save by installing a 95% furnace will easily pay for the difference in price over the 80% model and save you money every year after that.

I have installed many brands of furnaces over the years and have narrowed my offerings down to one brand. I now only install Goodman furnaces and air conditioners because I have found no better unit on the market that offers the price and warranty that I believe my customers want. Some of my customers have not heard of Goodman furnaces and air conditioners because of their lack of consumer advertising. This a plus, because who wants to pay for all of the expensive advertising that gets passed down to the consumer in the form of higher prices? Goodman had sales of 1.9 billion dollars last year and with out all of those expensive ads. You must be doing something right to become one of the largest manufacturers of furnaces in the United States with out all kinds of advertising. I also like the way Goodman backs me up if I need a warranty part without undue paperwork or making it difficult to return the part.

All furnace manufacturers have websites that you can review their products. The thing to watch out for while you look for a new furnace is not to be sucked in by a celebrity who is trying to convince you that one brand is better than the next without telling you the things that matter like warranty and price.

I hope this clears up some of the confusion in trying to pick one brand over another.


Follow-Up Postings:

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RE: Furnace Reviews

Theres an advertisement for Goodman Manufacturing if I ever saw one.

Register on Garden Web today and write all that, nice agenda

Your views are skewed besides, variable speed aside(always the right choice), I have about 350 heating hours a year. A 95% furnace will die and need replacing before I recoup the added expense through energy savings of having one installed.


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RE: Furnace Reviews

I always laugh when I hear this "the other brands are expensive because of their advertising" story. Hey, McDonalds advertises alot too, but they still sell hamburgers for 99 cents. Installers always want to sell one particular brand because that's the way the distributor networks operate.

Let's do something these installer posts never do - let's look at the numbers from the annual reports issued by the companies themselves, as required by law. The latest annual report available from the website of Goodman Global is from 2006. They listed sales of $1794.8 million and advertising costs of $8.8 million, or 0.15% of sales. This percentage was pretty consistent for 2006, 2005 and 2004.

Now let's look at another manufacturer, Trane, for example. Their website has a link to their 2007 annual report. Sales were $7450 million and advertising costs were $94 million, or 1.26%. This percentage was also the average for 2007, 2006 and 2005. So we can say two things - Trane is a bigger company than Goodman, and Trane's advertising expenses are indeed a larger percentage than Goodman's.

Now let's do a little math, something else these installer's posts never seem to do. My neighbor just had a new HVAC system (gas furnace and AC) installed for $7050. For a Trane system, the advertising portion of that cost would be 1.26% of $7050, or $88.83. For a Goodman system, the advertising portion of that same cost would be 0.15% of $7050, or $10.58. So the difference due only to the advertising budgets of the two companies comes to $78.25.

Now, you're undoubtedly thinking, the Goodman system would cost less. Well, yes, it probably would. But if the Goodman system is more than $78.25 cheaper than the Trane system (which it certainly would be), then the additional difference CANNOT be due to advertising. This is what is so laughable about these claims.

So what else could explain these price differences. The respective annual reports also tell us, for example, research and development costs. For Goodman Global, the R&D costs were 0.49%, 0.56% and 0.61% of sales in 2006, 2005 and 2004, respectively. For Trane, it was 1.56%, 1.49% and 1.45% in 2007, 2006 and 2005, respectively. Again, one notices two things - Trane spends proportionately more on R&D, and Trane increased their R&D spending over the last 3 years reported, while Goodman Global decreased theirs. This is consistent with Goodman's strategy. They say, in their own annual report, that their dealers prefer product lines that don't change because then they don't have to spend money on retraining. One can logically conclude from this actual financial data, then, that a Trane system is more likely to have the most modern technology, while a Goodman system is more likely to stick with older technology.

Even adding in the R&D difference is still not enough to explain the cost differences between Goodman and Trane (again, Trane is just an example of a higher end manufacturer - Lennox would have worked just as well). So there has to be something else, or several something elses. Goodman Global's annual report explicitly spells out their strategy of pursuing a low-cost design. Those are their words. Note that they don't say they're going to drive costs down by minimizing their advertising - they specifically say they are going after a low-cost design.

Logically, they must pay the same for raw materials (things like sheet metal) as everyone else, so it can't be that. Low labor costs, maybe? But the annual report states that their manufacturing facilities are in the US (good for them, by the way), not exactly the place to go for cheap labor. What does that leave? Could they have some super efficient manufacturing process? Do they have workers who can do the work of 10 ordinary workers? It seems unlikely. The reasonable conclusion is that they're using cheaper parts.

Now, I don't have a problem with that. It's a perfectly reasonable business strategy. It's like the difference between Walmart and Saks Fifth Avenue - two companies that are in the same business, but pursue it with different strategies. So enough of the "cost of advertising" excuse. We can see quite clearly that it doesn't stand up to the hard financial facts. Be honest. If you want to promote Goodman, that's fine. Tell us their stuff costs less - that's good enough for plenty of people. Or tell us they're made in the USA - another reason to buy. Just be honest.


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RE: Furnace Reviews

Tom,

Well researched and written.

Just the facts-


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RE: Furnace Reviews

Does that mean Trane cannot control their costs in other areas not mentioned like sales, logistics, marketing, engineering, management, corporate ... ??? Perhaps there is a bloated cost over run in their structure that makes them inefficient vs. Goodman?

I think all this that you point out in a couple of areas merely brings to light more areas that Trane may be more inefficient in comparison to Goodman?

They ALL buy the SAME motor's, limit switches, ignition control's, circuit board's, gas burner's, controls, draft inducer's, pressure controls, hot surface igniter's and gas valves from the SAME companies that build them like GE, Honeywell, White Rodgers, Robertshaw, etc. THE ONLY DIFFERENCE GETS DOWN TO the quality of build of the heat exchanger, cabinet, & housings. Then the testing of the assembled unit and integrity of the received unit.

After all of this it becomes a matter of other added cost in areas of overhead.

Tom's assumption above is that the Goodman would also cost $7050.00 for the same job which you and I know NOT to be the case. AND as a % of the total for advertising or R&D would be less than stated albeit the cost reduction under the TRANE price would significantly offset the paltry differences shown.


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RE: Furnace Reviews

Wow Tom, that was a mouth full...economics professor I’m guessing..
I am going to write what we are going through right now, which really is a bit more relevant to what a furnace review should look like. I also know everyone is entitled to their own opinions.
1 week ago our 7 year Lennox air conditioner started to act up. We called the installer and they informed me that because we were not properly changing out our filter the "A coil was ruined" while he was at our home, I told them to go ahead a do a clean and service on our no name 20 year old furnace. ALWAYS A GOOD IDEA TO DO BOTH AT THE SAME TIME.
After he made his once over, he said he wouldn’t go near it with a ten foot pole as far as cleaning it or servicing it because it was in such bad shape, and he did not want to be liable for anything bad that in his professional opinion would go wrong. I was a little skeptical of his reaction because he sounded so serious, so I called in a couple of companies just to get estimates so we wouldn’t have to pay for any more service calls. Every company that I called in without telling them that anything was wrong said that if we were to run our furnace this winter the likly hood of something terrible happening was written in stone.
Each company we called in, and there have been a few as of today, Goodman,Trane,American standered, whirlpool,Lennox, all had their little speeches as to how good their product was, I have been researching everyone of them, I had never heard of Goodman, before today, he was just a rep we called out of the phone book and asked what brand he dealt with and could he come over for a estimate. After doing more research tonight what I have found was based on the price which was HUNDREDS OF DOLLERS cheaper for as close to an apple to apples comparison, as I could come to. A 90 plus efficiency, around 100,thousand btu 4 ton drive with a 10 year furnace replacement warranty WHICH IS THE BEST... we have found our new furnace. And you guessed it IT’S A GOODMAN.
Who cares about a company’s advertising ,it may get a consumer started in the right direction.but remember It is our jobs, the ones who need new ones NEW ANYTHING to do as much homework as you can possible do. understand what it is your getting into, ask questions on the things you don’t get. And most importantly NEVER EVER WAIT TILL SOMETHING GOES WRONG THAT PUTS YOU IN A SPOT WERE YOU HAVE TO MAKE A QUICK UNEDUCATED DESION BECAUSE IT CAN AND WILL COST YOU TONS OF MONEY. Hint hint go and get your systems checked now before it’s too late. Below is one link which I used as part of my research, but I also used consumers reports and some word of mouth from people at work asking them only what they paid ,who they used and what model they had gotten .
www.AlpineHomeAir.com


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RE: Furnace Reviews

I have to say these are some very well and researched reviews. I am currently having my heating system replaced. So here is my story. I have a 19 year old Lennox Pulse system that pretty much bit the dust. While attempting to do an operational check to get ready for those long cold winter nights in upstate NY, the system decided to just chatter and never came online. After extensively exhausting my engineering and electrical background, I finally broke down and called a service repairman.

First words of wisdom. Find someone locally that you know or someone you trust knows. ASK! Don’t finger tab through the yellow pages. Check them out with the Better Business Bureau. It is even better if they have prior experience with your unit.

For my dilemma, I just recently purchased the house and all the inspector did was check the unit for operation, no foresight into potential problems with age of the furnace. Seems all units are built for an average life of 12-14 years. After finding the service center, the bad news came – I needed a new system. I even watched as he did his troubleshooting. I don’t think water is supposed to come out of the exhaust pipes.

I did a lot of research in pricing and sizing a new system since I found this before needing the furnace. I got estimates from several dealers, included the service center that brought me the bad news. It is true, 90% of the furnaces are EXACTLY the same. The manufacturers do not make most of the components themselves. It is like buying a car and complaining to Ford when the GE headlight burns out. As long as Ford covers it in their warranty and will do the repair work, your ok. Key word = WARRANTY. The best warranty I was able to find was 10 years on parts.

We decided to change out the furnace, humidifier, electronic filter and thermostat. After comparing the different manufactures, our service center provided the best estimate and warranty. Guess what – Goodman. But not $78 or $100 difference from Trane or Lennox, but over $2000.00 for the entire install. Yes that’s two thousand. As you know, you don’t just pay for the equipment, but overhead and the NAME. Is saying "I have a Trane" worth $2000. Plus, our service center added 10 years labor with the warranty.

Make sure you check for rebates with your energy provider and the unit you get qualifies for the federal tax credit. When finished, we upgraded to get a >95% efficient variable blower model to qualify for the federal tax credit rather than replace the 2-stage 90% efficient model that just died which doesn't qualify. With the qualifying rebates and tax credits it was only an additional $100 for the upgrade.


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RE: Furnace Reviews

great research and points everyone. one piece of the puzzle i believe has been overlooked, that represents a great portion of the cost of any of any product is "what the market will bear".
people pay more for the same product for many reasons - a more effective advertising message or name recognition, or in house sales pitch, my friend had good luck, etc.etc.
so Toms points, while all valid and analytical have a large blind spot. I think woodbury was giving his honest view as someone in the trade with no axe to grind. I believe what he says - is he going to make a buck off me??? I'm going with a goodman.


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