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Repair or Replace

What are the company standards for repairing versus replacing the unit?

Standard #1 – The “4K” Rule

Price of the repair times the age of the equipment*…To make it simple, we call it the “4K” rule. 4K stands for $4000, making it fast and simple to understand our company “speak.”  At 4K, we believe we are justified in beginning to discuss a repair-versus-replace option with you.

*As an example: a $400 repair multiplied by ten-year-old piece of equipment equals $4000 or 4K.

Standard #2 – The “Over 10” Rule

Anytime the equipment is over ten years old and there is a service event, the technician is encouraged to initiate the repair-versus-replace discussion with you about the merits of considering replacing/upgrading your equipment.

Given ever-increasing utility costs, the sensitivity many in our community have towards our dependence on foreign oil, and desire to conserve energy, having our technicians initiate a conversation about the merits of replacing your ten-plus-year-old air conditioning system with you during a service call is reasonable and  responsible.

What is in your best interest given your lifestyle, budget, condition of your home comfort equipment?

1. What is the age of the equipment?

Years 1, 2, 3, 4, 5 6, 7, 8, 9 10, 11, 12, 13, 14 15 or more
Rating Points 0 8 12 18

2. Equipment usage in hours (operating hours)

Annual Hours
0 -700
701 – 1400
1401 – 2000
Average Per Day 0-2 hours 2-4 hours 4-5.5 hours 5.5+ hours
Rating Points

3. How long do you plan to live in this home?

Years 1 – 3 Years 4 – 6 Years 7 – 9 Years 10+
Rating Points 1 2 3 4

4. Today’s repair cost that can be saved/reduced from invoice?

Amount in $$ $0 to $100 $101 to $300 $301 to $500 $501 and above
Rating Points 2 3 4 5

How did you score?

Points: 1 to 10

Repairing your system is the best option.


Points: 11 to 19

It is your decision.  Refer to the questions below.

Points: 20 & above

Replacement is the best economic decision given projected energy and repair costs.

What are the potential utility energy savings?

Is inflation a factor?

Is the new warranty an improvement over the current warranty?

Is indoor air improvement (IAQ) a consideration?

Are environmental factors a consideration?

Is it likely there will be future repair costs?