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Richard: On today’s show, it’s all about the rising cost of plumbing and air conditioning services in Houston.
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Richard: Thanks for tuning in, everybody. Welcome to the Return of the Potty Mouth, guys. I’m Richard Saad, CEO of Nick’s Plumbing and Air Conditioning, and with me today is John Eccles, our general manager.
John: Thanks, Richard. It’s fantastic to be back, man. Let’s get straight into today’s main topic, which is gonna center around the current wave of rising cost in both the plumbing and air conditioning industries.
Richard: The rising cost of home services in Houston, especially in sectors like HVAC and plumbing, have become a real challenge for homeowners and small businesses. The main factors causing these cost increases include higher raw materials, as we both know. Oh yeah. Supply chain disruptions, labor problems. Right. And stricter environmental regulations. Yeah. And they’ve plauged our industry with issues.
John: Yeah. They have.
Richard: Also, on top of that is new refrigerant that is coming out next year, which is changing the landscape of air conditioning.
John: Huge.
Richard: Now, due to that, with our new landscape of refrigerant, they have had higher R & D cost, which is creating price hikes again on equipment, and not only price hikes on equipment, we’ve got price hikes from oil price hikes from copper. Yeah. All the commodities, right? Yeah. All of which is, which is creating pressures as far as a company is concerned for us being successful with you guys on cost.
John: And I’m glad you said that Richard, impacts are huge these days and these rising costs for plumbing and HVAC and air conditioning, heating and all that. Um, what kind of impacts are we seeing?
Richard: That we have been impacted for, like everybody has for three years, right? In 2022 we went through six price hikes for air conditioning. Yeah, six. Last year we went through three price hikes.
John: That’s right.
Richard: Completely out of our control, right? A lot of this has to do with government regulation. Then on top of that, on the plumbing side, you’ve got PVC, which is all oil.
John: Yep.
Richard: Then you’ve got all the copper and you’ve got brass.
John: Tons of commodities.
Richard: All commodities.
John: Yep. Commodities, man. And everybody knows that goes ups and down. Yeah. Right. I mean, you gotta ride with it.
Richard: That’s exactly right. And, and when our costs are up in buying this material, does that mean we pass it off to you or do we not pass it off to you? We choose to eat it or we can’t eat it,right?
John: You know, we’re very versed in this industry. We’ve been in this industry a very long time, both of us, you know, close to 30 years now. Um, and we know what our competitors are doing. We know what the industry’s doing and a lot of people do that. They pass the, they pass the buck, so to speak, right?
Richard: Mm-hmm.
John: Um, but it’s, I will be tell you this, I’m happy to say here at Nick’s through that time, we’ve had one minor price increase, just one. We know that that times are tough and it needs to be an affordable option for these, uh, customers and clients, man, because that impact that, don’t get me wrong, it hits us, but it also hits them.
Richard: Sure, sure.
John: I mean, we’ve seen this in the economy. You, you kind of predicted this.
Richard: Mm-hmm.
John: Right? You know, about a year ago you sat me down in your office, you said, “Hey man, things are coming. We need to get ready.” It might have been two years ago now think about it.
Richard: I think it was two years.
John: Yeah. But what I’m saying is, is that we understand, right? We understand. And then the impacts on the in the industry itself is, is not easy. Right? I mean, what are, what other hurdles do businesses come across?
Richard: I wanted to say we’ve taken the impact
John: Yep.
Richard: Just the same as our clientele has taken the impact, right?
John: That’s a good way to put it, yeah.
Richard: Right now, the financial, in the financial markets in Houston, it, it doesn’t look good. It’s not good. Everybody is having some type of an issue. Right? I mean, when you’re talking about meat is up 50%, right? And, and, and everybody on TV heard about eggs going to 12 bucks when they used to be like, you could get organic for about three or four.
John: Yeah.
Richard: Right? Are those costs ever coming back down? Are our costs ever coming back down? I don’t think so. I think everything’s gonna just keep going and, and to completely reset this economy is too much of a challenge. It isn’t gonna happen. We’re gonna live now with maybe $8 eggs instead of $3 or $4 eggs.
John: Well, and I think that that goes right into what I was gonna say, is that everybody’s financial readiness to take care of repairs is delayed now. Emergency funds are being evaporated by higher cost for just normal living and all that stuff’s going down the road. So the average Joe homeowner is not prepared for those repairs. You know, and again, I, you know, here at Nick’s, you know, we were very sensitive to that.
And I’ll tell you, uh, in today’s economy at Nick’s plumbing and air conditioning, we’ve never been more affordable for our clientele than anyone else in this industry. We have done everything in our power to make sure that our services are available, uh, for the people that need it, you know, and, and obviously that’s anybody that’s obviously having a plumbing or air conditioning problem, but we’ve done everything in our power to limit that strain being passed from our suppliers down to you. Um, and I think that we’ve done a good job of that. You know, we care about our clients.
Richard: We’ve done a great job with that. I mean, the impact on us has been severe. We’ve had it just as hard as you guys have had it because we haven’t done price increases.
John: Right.
Richard: Now in, in saying this, can you get services in plumbing and air conditioning cheaper than us? Absolutely. You can. But with what you get with us in the warranty and financing options, we’re helping every way that we can to keep cost as affordable as we can.
John: Oh, a hundred percent. I’m glad you said financing options. You know, that’s one thing that a lot of our industry, uh, competitors don’t have. Again, we know that the economy’s not in the best state. We know that we need to give people, uh, different options in order to take care of it, especially larger repairs, uh, or sometimes even small ones.
That’s why we offer different financing options through our partners, Wells Fargo and GreenSky. You know, we, we have those out there and available for our clientele that way that they can get it, you know, and that way you can retain your cash flow and use those financing options to spread it out over time. Right.
It’s giving you a ton of savings over high interest credit cards, stuff of that nature. We got all these great plans that have deferred interest, prolonged payments, you know, stretch it out however you wanna do it. We have somebody, something that can fit your bill. Right. I mean, that’s what we do. Right?
Richard: That’s right.
John: That’s the industry we chose.
Richard: And I wanna go back to what you said earlier. It has never been more affordable. We are extremely affordable. Now, going in the future, rates and, and, and, and prices and increases are not stopping. They’re not going to stop. Things are going to keep going up. It’s just the way this is gonna work from now on. So everybody needs to get prepared. They need to keep funds available for maintenance, you know?
John: Yeah.
Richard: Just like your car, you’ve gotta change the oil in your vehicle. Right?
John: Right.
Richard: You have to keep money aside for problems like that and you are gonna have issues with plumbing at some point. You are gonna have issues with air conditioning. You are gonna get sticker shock no matter what the cost is.
John: Yeah. ’cause it never comes at a good time.
Richard: It never comes at a good time.
John: That’s right.
Richard: And you’re always gonna get sticker shock of why is this so much?
John: Yeah.
Richard: Well it’s also because you don’t ever use those type of services often enough as well to know.
John: Yeah.
Richard: Right?
John: Yeah.
Richard: And, and so when it does occur once every five years, let’s say, um, yeah, it’s sticker shock, and we understand that and we try to lower that sticker shock the best that we can.
John: Yeah. So I mean, I would tell you, you know, another big thing is the more that you delay those smaller repairs, it ends up becoming these bigger repairs. Right? So, um, you know, I would tell you what we say over here at Nick’s Plumbing is don’t delay, don’t overpay—Call Nick’s Plumbing and Air Conditioning.
Richard: And we’ll see you next time.
John: It’s good to be back.
Let’s face it. We’re all feeling the pinch of higher prices.
Over the past few years, the cost of living has been steadily rising, affecting both households and businesses in Houston. From groceries to gasoline, everyday expenses have increased, putting a strain on budgets and reshaping spending habits. Inflation, supply chain issues, and rising labor costs have all contributed to this surge, making it harder for families to keep up and forcing them to make tough choices about their expenses. This economic pressure is felt across the board, from the weekly grocery bill to unexpected home repairs.
This week’s “Potty Mouth Guys” episode is titled “The Rising Cost of Plumbing & HVAC Services in Houston.” In it, Richard Saad (our CEO) and John Eccles (our General Manager) discuss the impact of the increased costs on the plumbing and HVAC business sectors and what Nick’s Plumbing & HVAC customers can do to ensure their homes remain safe and comfortable during trying financial times.
What Does the Current Home Services Market Look Like in Houston?
For homeowners and businesses in Houston, the impact of rising costs is particularly severe when it comes to essential services like plumbing and HVAC. What were once routine repairs or maintenance tasks have now become significant financial burdens due to rising raw material costs, labor shortages, and new environmental regulations.
The increasing costs of these vital services add to many people’s overall financial stress and create a ripple effect across residential and commercial sectors.
Let’s Break Down Some Reasons for the Increase in Home Services
Increase in the Price of Raw Materials
One of the primary drivers behind the surge in costs is the increase in the price of raw materials. Plumbing and HVAC systems rely on essential materials like copper, steel, and various plastics, which have seen significant price hikes over the past few years. Global supply chain issues, initially exacerbated by events such as the COVID-19 pandemic and ongoing geopolitical tensions, have strained the availability of these materials, pushing costs higher. For instance, copper, a key component in plumbing and HVAC, has fluctuated significantly, making replacing piping or upgrading HVAC systems more expensive.
Not Enough New Tradesmen Available to Replace Those Retiring
Labor shortages in the skilled trades sector also play a pivotal role in rising service costs. The demand for qualified plumbers and HVAC technicians has consistently outpaced supply, partly due to an aging workforce and a lack of younger replacements entering the industry. As a result, companies pay higher wages to attract and retain skilled workers, a cost that is inevitably passed down to the consumer. Additionally, the increased demand for plumbing and HVAC services in a booming city like Houston further intensifies the competition for these limited resources, driving up prices for both labor and services.
New Environmental Regulations Result in More Expensive Plumbing and HVAC Services
Furthermore, new environmental regulations have placed additional pressure on plumbing and HVAC companies, requiring them to adopt greener practices and install more energy-efficient systems. While these regulations benefit sustainability, they often require companies to invest in new technologies and more expensive, environmentally friendly materials. For example, the push for energy-efficient HVAC units that use less ecologically damaging refrigerants like Freon and higher efficiency plumbing fixtures has led to the need for specialized components that come at a premium. These changes and other cost drivers have made it more challenging for service providers to maintain competitive pricing without sacrificing quality or compliance.
Higher Prices Do Not Mean We Can Ignore Regular Maintenance!
While rising service costs may tempt homeowners to delay or skip regular maintenance, ignoring these routine tasks can lead to even more expensive repairs. Plumbing and HVAC systems are essential to a comfortable and functional home, and without regular maintenance, minor issues can quickly escalate into significant, costly problems. For instance, a small leak in a plumbing pipe can cause water damage, mold, and even structural issues if left untreated. Similarly, neglecting regular HVAC maintenance can result in poor system efficiency, higher energy bills, and potential breakdowns during extreme weather when the system is needed most.
Investing in regular upkeep also helps extend the lifespan of these systems, reducing the likelihood of significant, costly replacements. Regular maintenance tasks, like changing filters, checking for leaks, and inspecting system components, can catch minor issues before they become substantial problems. By prioritizing these preventive measures, homeowners can ensure their plumbing and HVAC systems operate efficiently, avoid more expensive emergency repairs, and, over time, save money—even amid the current high service costs.
Nick’s Offers Affordable VIP Maintenance Plans for Plumbing & HVAC Systems!
Nick’s Plumbing & Air Conditioning understands that an unexpected HVAC or water heater bill is the last thing anyone needs in today’s uncertain times. That’s why we’ve created Nick’s Smart VIP Maintenance Plan—a comprehensive program designed to provide peace of mind by offering 24/7 intelligent monitoring of your HVAC system and water heater.
For just $24.99 a month, this plan uses advanced machine learning technology to continuously monitor these essential systems, alerting you to potential issues, like leaks, before they escalate into costly repairs. Plus, with timely maintenance reminders, you’ll never have to worry about missing routine care. With Nick’s Smart VIP Maintenance Plan, you can stay ahead of unexpected expenses and ensure your home systems are always running smoothly.
Nick’s Can Help Make the Burden of Costly Plumbing & HVAC Services Easier to Afford!
Nick’s Plumbing & HVAC understands that large-scale home repairs can be financially daunting, so we offer flexible financing options through Wells Fargo.
These programs allow homeowners to break down substantial repair costs into manageable monthly payments, easing the financial burden. With easy-to-use application processes and competitive terms, these financing options allow homeowners to address crucial HVAC or plumbing repairs without immediate financial strain. By partnering with Wells Fargo and GreenSky, Nick’s ensures customers can take care of essential home repairs while keeping their budgets intact.
Trust Nick’s to Keep Your Home Comfortable and Running Officially with Our Maintenance and Financing Options!
Houston residents can count on Nick’s Plumbing & AC for reliable, expert service to keep their homes running smoothly. With decades of experience serving the community, Nick’s team of skilled professionals is dedicated to delivering high-quality maintenance and repair services that ensure the longevity and efficiency of your plumbing and HVAC systems. Regular maintenance is crucial for preventing unexpected breakdowns and extending the life of essential home systems. Nick’s Plumbing & AC provides thorough inspections, timely reminders, and personalized service tailored to each customer’s needs.
Whether it’s a routine maintenance check or a major repair, Nick’s team is here to help Houston residents protect their homes and stay comfortable all year round.
Call Nick’s Today, We’re on the Way!
