HVAC Startup Cost Comparison
Detroit, MI vs Los Angeles, CA
Detroit, MI
$25,000 - $129,000
COL Index: 89.5
VS
Los Angeles, CA
$32,000 - $158,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Detroit, MI | Los Angeles, CA | Difference |
|---|---|---|---|
|
Business Registration & HVAC License
|
$800 - $5,000 | $4,000 - $14,400 | -68% |
|
Service Vehicle(s)
|
$8,000 - $45,000 | $8,000 - $45,000 | Same |
|
HVAC Tools & Diagnostic Equipment
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Parts & Refrigerant Inventory
|
$2,000 - $10,000 | $2,000 - $10,000 | Same |
|
Business Insurance & Bonding (Annual)
|
$3,000 - $12,000 | $3,000 - $12,000 | Same |
|
Marketing & Lead Generation
|
$2,000 - $10,000 | $2,000 - $10,000 | Same |
|
Working Capital (3 Months)
|
$4,500 - $22,400 | $8,300 - $41,600 | -46% |
| Total Estimated Cost | $25,000 - $129,000 | $32,000 - $158,000 | -19% |
Local Market Factors
| Factor | Detroit | Los Angeles |
|---|---|---|
| Cost of Living Index | 89.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $10 - $28 | $30 - $85 |
| Labor Rate Index | 0.85 | 1.35 |
| Sales Tax | 6% | 9.5% |
| Minimum Wage | $10.33/hr | $16.78/hr |
| LLC Filing Fee | $50 | $70 |
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