Look up private equity buying up HVAC firms.

It is in fact a get rich scheme.

I thought private equity was all about liquidating nearly bankrupt businesses

That too, but in this case they’ve got a formula for enshitifying local firms.

I don't know why you're being downvoted (it shows as slightly greyed out). This is true. I had a roommate who is a HVAC salesman. Very smooth talked. The 'HVAC' company offers free HVAC maintenance. They techs go in, do some stuff and they point out some problems. Sales guy goes in, smooth talks his way to 5K - 70K bill to most people. Of course, when something goes out and people don't have a choice (like in peak summer or winter), they make out like bandits.

Most of the local firms (Dick's local $town hvac/plumbing/electrical) are owned by massive PE firms (Saudi + other billionaires) which pretty much own the entire businesses all over US. They keep the local name to make people believe they are giving business to a local guy.

Another roommate of mine was a plumber.

The guys who do the actual work get paid close to nothing ($20 - $22/hour) and live on day to day basis.

Plumbing company quoted me $3000 to replace a broken water heater in the middle of peak winter. I paid my guy $300 for labor (heaters are $500 - $1000 from lowes depending on how long of warranty you want) and he was super happy for making a lot of money.

The good local contractors have all the work they can handle on commercial accounts. Residential is an annoyance. That leaves the very small fish (if you can find them) and the PE-owned scam companies.

The equipment is actually a lot cheaper if you’re a pro - the DIY pre-charged line-set adds about $500 over an equivalent unit. Pulling a vacuum and adding coolant is not hard, just requires specialized tools that still aren’t that expensive.

I mentioned warranty and insurance.

You don’t need to “schedule workers” if you are owner operating. Maybe you want a (non-skilled) helper to speed up the install, but you absolutely could install solo. That said, you will need a licensed electrician to run the circuit.

In my metro, hvac contractors can get ten-packs of permits for mini-split installs, and at most one out of ten is inspected. It’s a rubber stamp if you’re a pro, and the individual permit is maybe $50.

And that $5k I mentioned is the low bid, which you’ll only see if you know how to find contractors who aren’t private equity fronts. These guys are not advertising, but they stay busy by having the best price. There are shops that will happily charge you double for the same work.

I never said it’s a get rich quick scheme. It is just highly compensated for owners without requiring the level of expertise of something like a plumber or electrician. I’m curious what is happening in the market to support these margins.

Devils advocate here, it cost me ~$1500 in equipment to buy the vacuum pump, vacuum gauge, nitrogen air tank to flush the lines and pressure test, pressure manifold set and gauge, air lines, good flaring tool, copper bending tool, schrader valve pulling tools, various air tools, and a book on mini split installations.

Then it took me 2 days between pouring concrete pad for the heat pump, installing the heat pump and bolting it in, running the copper lines, drilling the exit hole, running the drain piping, learning how to use all the tools, running the electric and control cables and installing a new breaker and 220 subpanel, pressure testing, vacuum testing, flaring, releasing vacuum and all the stuff you have to do. I also had to spend several nights watching youtube and get a EPA 608 certification for handling refrigant which took another day.

Wouldn't have been worth it for a single unit, but was worth it for installing 3, and now I can do additional units for basically $0 overhead and of course no one would even have to know if I installed it and now I can order unlimited amount of refrigerants to my doorstep.

Having plumbed my entire house, and done my entire house electrical system, I would say the level of expertise to install a mini split is higher than either alone. You have to do electrical, plumbing, refrigerant handling, pressurized equipment handling, be liable for massive federal/EPA fines if you do something wrong, and on top of that I had to do masonry work.

There is a 0.00000% chance of getting into EPA trouble installing one minisplit. You got crews dumping 5 a day into a bucket of water all over and no one will answer a report