### 6

- A

- i APPENDIX 6

- A. DETAILED DATA FOR EQ UIPMENT PRICE MARKUP S

TABLE OF CO NTENTS

6

- A.1 DETAILED WHOLESALER COST DATA

................................ ........................ 6

- A

- 1 6

- A.2 DETAILED MECHANICAL CONTRACTOR DATA

................................ ........ 6

- A

- 2 6

- A.3 DETAILED GENERAL CON TRACTOR COST DATA

................................ ..... 6

- A

- 4 6

- A.4 ESTIMATION OF CONTRA CTOR MARK

- UP BY STATE

............................. 6

- A

- 6 6

- A.5 STA TE SALES TAX RATES

................................ ................................ ............. 6

- A

- 11 6

- A.6 DATA FOR MARKUP COMP ARISON

................................ ............................ 6

- A

- 12

LIST OF TABLES

Table 6

- A

- 1 Disaggregated Costs and Expenses for Wholesalers

................................ 6

- A

- 1 Table 6

- A

- 2 Mechanical Contractor Expenses and Markups Used To Scale the Incremental Markups

................................ ................................ ................. 6

- A

- 3 Table 6

- A

- 3 Residential General Contractor Expenses and Markups

........................... 6

- A

- 4 Table 6

- A

- 4 Commercial General Contractor Expenses and Markups

......................... 6

- A

- 5 Table 6

- A

- 5 Mechanical Contractor Markup Estimation by State, 2007

...................... 6

- A

- 6 Table 6

- A

- 6 Residential Building General Contractor Baseline Markups by State

...... 6

- A

- 8 Table 6

- A

- 7 Commercial Building General Contractor Baseline Markups by State

.. 6

- A

- 10 Table 6

- A

- 8 State Sales Tax Rates

................................ ................................ .............. 6

- A

- 11 Table 6

- A

- 9 Price Comparison of Baseline Residential Boilers

................................ . 6

- A

- 12 Table 6

- A

- 10 List of Residential Boiler Prices from Online Websites

........................... 6

- A

- 1

### 6

- A

- 1 APPENDIX 6

- A. DETAILED DATA FOR EQ UIPMENT PRICE MARKUP S

6

- A.1 DETAILED WHOLESALER COST DATA Based on data provided by the Heating Air

- conditioning & Refrigeration Distributors International (HARDI), Table 6.5

. 2 of chapter 6 shows wholesaler revenues a nd costs in aggregated form. Table 6

- A.1

. 1 in this appendix provides the complete breakdown of costs and expenses

. The column labeled “Scaling” in Table 6

- A.1

. 1 indicates which expenses the U.S. Department of Energy (DOE) assumed to scale with only the baseline markup and which with both the baseline and incremental markups. O nly those expenses that scale with both baseline and incremental costs are marked up when there is an incremental change in equipment costs.

Table 6

- A

- 1 Disaggregated Costs and Expenses for Wholesalers

Item Percent of Revenue % Scaling Cost of Goods Sold 73. 7 Gross Margin 2 6

. 3 Payroll Expenses 1 5. 1 Baseline Executive Salaries & Bonuses 1.7 Branch Manager Salaries and Commissions 1.5 Sales Executive Salaries & Commissions 0.5 Outside Sales Salaries & Commissions 2.1 Inside/Counter Sales/Wages 2.8 Purchasing Salaries/Wages 0.4 Credit Salaries/Wages 0.2 IT Salaries/Wages 0.1 Warehouse Salaries/Wages 1.4 Accounting 0.5 Delivery Salaries/Wages 0.7 All Other Salaries/Wages & Bonuses 0.8 Payroll Taxes 1.0 Group Insurance 1.1 Benefit Plans 0.3 Occupancy Expenses 3. 6 Baseline Utilities: Heat, Light, Power, Water 0.4 Telephone 0.3 Building Repairs & Maintenance 0.2 Rent or Ownership in Real Estate 2.7

### 6

- A

- 2 Item Percent of Revenue % Scaling Other Operating Expenses 5. 5 Baseline & Incremental Sales Expenses (incl. a dvertising & p romotion ) 0. 9 Insurance (business liability & casualty) 0.2 Depreciation 0.4 Vehicle Expenses 1.4 Personal Property Taxes/Licenses 0.1 Collection Expenses 0.3 Bad Debt Losses 0.2 Data Processing 0.3 All Other Operating Expenses 1.7 Total Operating Expenses 2 4. 2 Operating Profit 2. 1 Baseline & Incremental Other Income 0. 4 Interest Expense 0. 5 Other Non

- operating Expenses 0.0 Profit Before Taxes 2. 0 Source: Heating, Air

- co nditioning & Refrigeration Distributors International. 2012

. 2012 Profit Report ( 2011 Data). Note: The wholesaler costs and expenses are percentage values as opposed to the per

- dollar of sale s revenue values shown in Table 6

. 4 .1.


### 6

- A.2 DETAILED MECHANICAL CONTRACTOR DATA

Tables 6.5

. 4 and Table 6.5

. 5 of chapter 6 provide mechanical contractor revenues and costs in aggregated form by ‘Cost of Goods Sold’ and ‘Gross Margin.’ The tables are based on data in the 2005 edition of Financial Analysis for the HVACR Contracting Industry , published by the Air Conditioning Contractors of America (ACCA). The ACCA report did not provide a more disaggregate d tabulation of these costs and expenses. As in section 6

- A.1 , the gross margin category was assumed to scale only with the baseline markup.

A further disaggregated breakdown of costs used to scale the incremental markup are shown in Table 6

- A.2

. 1 by both dollar value and percentage terms from the 2007 Census of Business. As the ACCA data were used to calculate the baseline markup, in Table 6

- A .2

. 1 only the categories in the ‘Scaling’ column that are scaled with both the baseline and incremental markups are marked when there is an incremental change in equipment costs.

### 6

- A

- 3 Table 6

- A

- 2 Mechanical Contractor Expenses and Markups Used To Scale the Incremental Markups

Item Dollar Value $1,000 Percentag e % Scaling Total Cost of Equipment Sales 107,144,428 67.80 Total payroll, construction workers wages 31,373,558 19.85 Cost of materials, components, and supplies 59,023,964 37.35 Cost of construction work subcontracted out to others 13,646,192 8.63 Total cost of selected power, fuels, and lubricants 3,100,714 1.96 Gross Margin 50,895,129 32.20 Payroll Expenses 28,065,632 17.76

Baseline Total payroll, other employee wages 14,041,336 8.88 Total fringe benefits 13,585,040 8.60 Temporary staff and leased employee expenses 439,256 0.28 Occupancy Expenses 3,436,208 2.17

Baseline Rental costs of machinery and equipment 1,047,026 0.66 Rental costs of buildings 1,231,263 0.78 Communication services 640,851 0.41 Cost of repair to machinery and equipment 517,068 0.33 Other Operating Expenses 12,671,194 8.02

Baseline & Incremental Purchased professional and technical services 843,641 0.53 Data processing and other purchased computer services 98,016 0.06 Expensed computer hardware and other equipment 255,474 0.16 Expensed purchases of software 64,195 0.04 Advertising and promotion services 1,018,265 0.64 All other expenses 6,944,674 4.39 Refuse removal (including hazardous waste) services 153,241 0.10 Taxes and license fees 996,138 0.63 Total depreciation ($1,000) 2,297,550 1.45

Net Profit Before Income Taxes 6,722,095 4.25 Baseline & Incremental Source: U.S. Census Bureau. 200 7 . Plumbing, Heating, and Air

- Conditioning Contractors: 200 7

. Sector 23: 238220

. Construction: Geographic Area Series. Detailed Statistics for Establishments: 200 7

. Note: Mechanical contractor costs and expenses are first presented as total dollar values and th e n converted to percentage values. This is in contrast to the c ost per dollar of sales revenue values shown in Table 6

. 5

. 2

.

### 6

- A

- 4 6

- A.3 DETAILED GENERAL CONTRACTOR COST DATA Based on U.S. Department of Census data, Table 6.5

. 7 and Table 6.5

. 8 of chapter 6, shows both residential building and commercial building general contractor revenues and costs in aggregated form. Table 6

- A.3

. 1 shows the complete breakdown of costs and expenses of residential building contractor provided by the U.S. Department of Census. The column labeled “Scaling” indicates which expenses DOE assu med to scale with only the baseline markup and which are scaled with both the baseline and incremental markups. O nly those expenses that scale with baseline and incremental costs are marked up when there is an incremental chang e in equipment costs. Table 6

- A.3

. 2 shows the similar analysis for commercial building contractors.

Table 6

- A

- 3 Residential General Contractor Ex penses and Markups

Item Dollar Value $1,000 Percentage % Scaling Total Cost of Equipment Sales 238,431,389 67.55

Total payroll, construction workers wages 16,629,321 4.71 Cost of materials, components, and supplies 126,764,975 35.91 Cost of construction work subcontracted out to others 90,956,668 25.77 Total cost of selected power, fuels, and lubricants 4,080,425 1.16 Gross Margin 114,558,247 32.45 Payroll Expenses 28,806,792 8.16

Baseline Total payroll, other employee wages 20,843,029 5.90 Total fringe benefits 7,464,670 2.11 Temporary staff and leased employee expenses 499,093 0.14 Occupancy Expenses 3,558,796 1.01

Baseline

Rental costs of machinery and equipment 572,783 0.16 Rental costs of buildings 1,532,841 0.43 Communication services 810,436 0.23 Cost of repair to machinery and equipment 642,736 0.18 Other Operating Expenses 21,341,175 6.05

Baseline & Incremental Purchased professional and technical services 1,834,816 0.52 Data processing and other purchased computer services 141,344 0.04 Expensed computer hardware and other equipment 261,701 0.07 Expensed purchases of software 105,338 0.03 Advertising and promotion services 2,544,687 0.72 All other expenses 10,840,757 3.07 Refuse removal (including hazardous waste) services 520,907 0.15 Taxes and license fees 1,791,539 0.51 Total depreciation ($1,000) 3,300,086 0.93 Net Profit Before Income Taxes 60,851,484 17.24 Baseline & Incremental Source: U.S. Census Bureau. 2007. Residential Building Construction. Sector 23 , EC0723I1 : 236115 through 236118. Construction, Industry Series, Preliminary Detailed Statistics for Establishments: 2007. Note: G eneral contractor costs and expenses are first presented as total dollar values and then converted to percentage values. This is in contrast to the cost per dollar of sales revenue values shown in Table 6.5.6.

### 6

- A

- 5 Table 6

- A

- 4 Commercial General Contractor Expenses and Markups

Item Dollar Value $1,000 Percentage % Scaling Total Cost of Equipment Sales 250,657,006 76.24

Total payroll, construction workers wages 16,449,830 5.00 Cost of materials, components, and supplies 74,148,280 22.55 Cost of construction work subcontracted out to others 157,873,840 48.02 Total cost of selected power, fuels, and lubricants 2,185,056 0.66 Gross Margin 78,113,967 23.76 Payroll Expenses 25,948,454 7.89

Baseline Total payroll, other employees’ wages 16,652,791 5.07 Total fringe benefits 8,666,079 2.64 Temporary staff and leased employee expenses 629,584 0.19 Occupancy Expenses 3,301,046 1.00

Baseline

Rental costs of machinery and equipment 1,403,979 0.43 Rental costs of buildings 1,045,163 0.32 Communication services 385,109 0.12 Cost of repair to machinery and equipment 466,795 0.14 Other Operating Expenses 10,770,620 3.28

Baseline & Incremental Purchased professional and technical services 1,121,644 0.34 Data processing and other purchased computer services 127,031 0.04 Expensed computer hardware and other equipment 219,601 0.07 Expensed purchases of software 67,977 0.02 Advertising and promotion services 290,239 0.09 All other expenses 6,321,197 1.92 Refuse removal (including hazardous waste) services 233,831 0.07 Taxes and license fees 807,872 0.25 Total depreciation ($1,000) 1,581,228 0.48

Net Profit Before Income Taxes 38,093,847 11.59 Baseline & Incremental Source: U.S. Census Bureau. 2007. Residential Building Construction. Sector 23 , EC0723I1: 236220 (Commercial Building Construction

. Construction, Industry Series, Preliminary Detailed Statistics for Establishments: 2007. Note: G eneral contractor costs and expenses are first presented as total dollar values and then converted to percentage values. This is in contrast to the cost per dollar of sales revenue values shown in Table 6.5.6.

### 6

- A

- 6 6

- A.4 ESTIMATION OF CONTRA CTOR MARK

- UP BY STATE

Table 6

- A

- 5 Mechanical Contractor Markup Estimation by State, 2007

State Value of Const

. $1,000 Cost of Goods Sold $ 1, 000 Baseline MU Incremental MU Replacem ent Baseline

MU Replacement Incremental MU New Const

. Baseline

MU New Const

. Incremental MU
Alabama 2,010,305 1,401,223 1.435 1.148 1.498 1.198 1.393 1.114
Alaska 583,171 344,729 1.692 1.353 1.766 1.413 1.642 1.314
Arizona 3,522,116 2,326,475 1.514 1.211 1.580 1.264 1.470 1.176
Arkansas 1,065,754 743,395 1.434 1.147 1.496 1.197 1.392 1.113
California 16,726,969 10,865,201 1.539 1.232 1.607 1.286 1.495 1.196
Colorado 3,056,988 2,084,454 1.467 1.173 1.531 1.225 1.424 1.139
Connecticut 1,704,668 1,135,871 1.501 1.201 1.566 1.253 1.457 1.166
Delaware 481,900 D 1.421 1.137 1.483 1.186 1.379 1.104 District of Columbia 34,600 D 1.458 1.167 1.522 1.218 1.416 1.133
Florida 9,061,426 6,254,391 1.449 1.159 1.512 1.210 1.407 1.125 Georgia 4,700,799 3,329,842 1.412 1.129 1.474 1.179 1.371 1.096
Hawaii 800,221 455,122 1.758 1.407 1.835 1.468 1.707 1.366
Idaho 900,698 617,165 1.459 1.168 1.523 1.219 1.417 1.133
Illinois 7,641,642 5,058,047 1.511 1.209 1.577 1.262 1.467 1.173
Indiana 4,002,323 2,605,238 1.536 1.229 1.604 1.283 1.491 1.193

Iowa 1,868,483 1,305,883 1.431 1.145 1.493 1.195 1.389 1.111

Kansas 1,395,359 966,707 1.443 1.155 1.507 1.205 1.401 1.121 Kentucky 1,747,925 1,157,360 1.510 1.208 1.576 1.261 1.466 1.173
Louisiana 1,997,044 1,317,429 1.516 1.213 1.582 1.266 1.472 1.177
Maine 580,816 394,847 1.471 1.177 1.535 1.228 1.428 1.142 Maryland 5,329,135 3,739,560 1.425 1.140 1.487 1.190 1.383 1.107
Massachusetts 4,099,301 2,781,377 1.474 1.179 1.538 1.231 1.431 1.145 Michigan 4,420,638 3,015,948 1.466 1.173 1.530 1.224 1.423 1.138
Minnesota 3,402,921 2,315,330 1.470 1.176 1.534 1.227 1.427 1.141 Mississippi 1,025,452 715,571 1.433 1.146 1.496 1.197 1.391 1.113
Missouri 3,335,124 2,353,598 1.417 1.134 1.479 1.183 1.376 1.101

Montana 483,578 345,458 1.400 1.120 1.461 1.169 1.359 1.087
Nebraska 1,004,296 755,338 1.330 1.064 1.388 1.110 1.291 1.033
Nevada 2,327,842 1,600,555 1.454 1.164 1.518 1.214 1.412 1.130 New Hampshire 620,761 D 1.472 1.178 1.537 1.230 1.429 1.144 New Jersey 5,062,336 3,337,013 1.517 1.214 1.583 1.267 1.473 1.178

New Mexico 891,914 595,659 1.497 1.198 1.563 1.250 1.454 1.163

### 6

- A

- 7 State Value of Const

. $1,000 Cost of Goods Sold $ 1, 000 Baseline MU Incremental MU Replacem ent Baseline

MU Replacement Incremental MU New Const

. Baseline

MU New Const

. Incremental MU
New York 10,364,779 6,760,337 1.533 1.227 1.600 1.280 1.488 1.191 North Carolina 5,111,396 3,631,802 1.407 1.126 1.469 1.175 1.366 1.093
North Dakota 360,683 255,057 1.414 1.131 1.476 1.181 1.373 1.098
Ohio 5,618,591 3,809,806 1.475 1.180 1.539 1.231 1.432 1.145
Oklahoma 1,352,943 924,264 1.464 1.171 1.528 1.222 1.421 1.137 Oregon 1,893,678 1,237,956 1.530 1.224 1.597 1.277 1.485 1.188 Pennsylvania 6,487,476 4,579,367 1.417 1.133 1.479 1.183 1.375 1.100
Rhode Island 631,202 410,653 1.537 1.230 1.604 1.284 1.492 1.194 South Carolina 1,991,303 1,326,690 1.501 1.201 1.567 1.253 1.457 1.166
South Dakota 386,186 239,017 1.616 1.293 1.686 1.349 1.569 1.255

Tennessee 2,595,613 1,834,242 1.415 1.132 1.477 1.182 1.374 1.099

Texas 10,810,308 7,532,064 1.435 1.148 1.498 1.198 1.393 1.115
Utah 1,746,398 1,235,004 1.414 1.131 1.476 1.181 1.373 1.098

Vermont 294,806 D 1.472 1.178 1.537 1.230 1.429 1.144 Virginia 4,623,151 3,099,329 1.492 1.193 1.557 1.246 1.448 1.158 Washington 4,111,543 2,734,093 1.504 1.203 1.570 1.256 1.460 1.168 West Virginia 655,100 D 1.464 1.171 1.528 1.222 1.421 1.137
Wisconsin 2,926,545 2,023,634 1.446 1.157 1.510 1.208 1.404 1.123 Wyoming 289,391 198,105 1.461 1.169 1.525 1.220 1.418 1.135 Sources: U.S. Bureau of the Census. American Factfinder : 2007. Sector 23: Plumbing, Heating, and Air

- Conditioning Contractors ( NAICS 238220 ), Detailed Statistics for Establishments: 2007 http://factfinder.census.gov/servlet/IBQTable?_bm=y&

- ds_name=EC0723A1&

- NAICS2007=238220&

- _lang=en and Geographic Area Series: Detailed Statistics for Establishments: 2007. Notes: The Census Bureau withheld data for some states. Markups may vary across stat es for several reasons, including differences in firm size. Due to sample size and/or magnitude of reporting error relative to the mean, disaggregated information not provided for all o f the Subcontract, Materials, and Fuels fields. In these cases, the state markup ratio is calcul a ted as an average of neighboring states (ex. Delaware, District of Columbia, New Hampshire, Vermont , and West Virginia)

### 6

- A

- 8 Table 6

- A

- 6 Residential Building General Contractor Baseline Markups by State

State Va lue of Residential Construction $ 1, 000 Cost of Goods Sold

$1,000 Baseline Markup Incremental Markup
Alabama 4,232,349 3,106,308 1.363 1.234
Alaska 598,572 322,897 1.854 1.678
Arizona 14,743,264 8,636,727 1.707 1.546
Arkansas 821,493 638,546 1.287 1.165
California 49,325,592 28,727,843 1.717 1.555
Colorado 9,711,667 6,478,218 1.499 1.357
Connecticut 2,835,015 1,914,706 1.481 1.341
Delaware 912,121 714,609 1.276 1.156
District of Columbia 177,004 115,545 1.532 1.387
Florida 33,290,091 21,780,175 1.528 1.384 Georgia 12,492,752 8,745,668 1.428 1.293
Hawaii 2,739,122 1,933,143 1.417 1.283
Idaho 2,565,176 2,014,522 1.273 1.153
Illinois 13,035,923 8,206,105 1.589 1.438
Indiana 4,637,976 3,418,576 1.357 1.228
Iowa 1,846,602 1,449,114 1.274 1.154
Kansas 1,940,745 1,443,265 1.345 1.217 Kentucky 3,074,656 2,244,283 1.370 1.240
Louisiana 2,429,529 1,650,884 1.472 1.332
Maine 821,980 630,393 1.304 1.181 Maryland 6,616,960 4,635,717 1.427 1.292
Massachusetts 7,693,991 5,728,767 1.343 1.216 Michigan 5,383,752 3,501,797 1.537 1.392
Minnesota 5,558,816 3,847,679 1.445 1.308 Mississippi 1,241,083 939,692 1.321 1.196
Missouri 4,754,552 3,588,694 1.325 1.200
Montana 1,148,453 919,206 1.249 1.131
Nebraska 577,746 424,822 1.360 1.231
Nevada 6,697,489 4,026,111 1.664 1.506 New Hampshire 292,227 228,854 1.277 1.156 New Jersey 8,492,015 5,649,618 1.503 1.361
New Mexico 2,236,262 1,395,073 1.603 1.451
New York 16,958,113 12,176,837 1.393 1.261
North Carolina 16,254,736 11,579,895 1.404 1.271
North Dakota D D 1.331 1.205

### 6

- A

- 9 State Va lue of Residential Construction $ 1, 000 Cost of Goods Sold

$1,000 Baseline Markup Incremental Markup
Ohio 6,788,825 4,883,462 1.390 1.259
Oklahoma 1,419,859 1,075,586 1.320 1.195 Oregon 5,519,819 4,019,693 1.373 1.243 Pennsylvania 9,971,624 7,323,399 1.362 1.233
Rhode Island 309,403 205,383 1.506 1.364
South Carolina 5,921,453 4,350,205 1.361 1.232
South Dakota 297,424 228,839 1.300 1.177
Tennessee 5,243,037 3,874,974 1.353 1.225
Texas 32,123,700 21,429,103 1.499 1.357
Utah 4,201,276 3,095,214 1.357 1.229
Vermont 527,837 387,905 1.361 1.232 Virginia 12,761,751 8,799,880 1.450 1.313 Washington 11,158,559 7,361,497 1.516 1.372 West Virginia 348,291 225,500 1.545 1.398
Wisconsin 3,820,533 2,850,921 1.340 1.213 Wyoming 524,809 418,215 1.255 1.136 Sources: U.S. Bureau of the Census, American Factfinder. 2007 Economic Census. Sector 23: Subsectors 236115 (residential sing le

- family), 236116 (residential multifamily), 236117 (operative builders), and 236118 (residential remodelers). Sector 23: EC0723A 1: Construction: Geographic Area Series: Detailed Statistics for Establishments: 2007. Notes: The Census Bureau withheld data for some states. Markups may vary across states for several reasons, including differences in firm size. Due to sample size and/or magnitude of reporting error relative to the mean, disaggregated information not provided for all of the Subcontract, Materials, and Fuels fields. In these cases, the state markup ratio is calcul a ted as an average of neighboring states (ex. North Dakota)

.

### 6

- A

- 10 Table 6

- A

- 7 Commercial Building General Contractor Baseline Markups by State

State Value of Construction $1,000 Cost of Goods Sold $1,000 Baseline Markup Incremental Markup Alabama 7,553,561 5,966,033 1.266 1.266 Alaska 1,687,503 1,265,663 1.333 1.333 Arizona 12,151,583 9,218,504 1.318 1.318 Arkansas 3,187,913 2,524,259 1.263 1.263 California 43,866,759 32,549,870 1.348 1.348 Colorado 9,218,679 7,554,813 1.220 1.220 Connecticut 2,398,913 1,704,640 1.407 1.407 Delaware 727,553 508,123 1.432 1.432 District of Columbia 918,723 792,275 1.160 1.160 Florida 19,686,238 14,553,102 1.353 1.353 Georgia 10,541,824 7,189,660 1.466 1.466 Hawaii 2,341,014 1,802,494 1.299 1.299 Idaho 1,555,058 1,291,347 1.204 1.204 Illinois 13,909,785 10,206,749 1.363 1.363 Indiana 5,967,203 4,636,748 1.287 1.287
Iowa 3,405,782 2,585,432 1.317 1.317
Kansas 2,721,025 2,252,824 1.208 1.208 Kentucky 3,028,131 2,289,475 1.323 1.323 Louisiana 4,476,198 3,078,813 1.454 1.454 Maine 738,455 585,867 1.260 1.260 Maryland 8,299,684 6,472,850 1.282 1.282 Massachusetts 7,035,875 5,272,385 1.334 1.334 Michigan 5,363,993 3,824,364 1.403 1.403 Minnesota 8,203,910 5,908,604 1.388 1.388 Mississippi 3,593,463 2,094,843 1.715 1.715 Missouri 9,293,483 7,970,536 1.166 1.166
Montana 924,342 734,797 1.258 1.258 Nebraska 1,589,168 1,080,612 1.471 1.471 Nevada 6,285,128 4,704,160 1.336 1.336 New Hampshire 1,040,005 816,281 1.274 1.274
New Jersey 7,331,413 4,421,279 1.658 1.658 New Mexico 1,537,718 1,210,550 1.270 1.270 New York 19,752,366 14,491,190 1.363 1.363 North Carolina 8,605,888 6,566,496 1.311 1.311 North Dakota 659,818 542,850 1.215 1.215 Ohio 8,889,511 7,158,247 1.242 1.242 Oklahoma 3,307,370 2,875,301 1.150 1.150

### 6

- A

- 11 Oregon 3,273,641 2,606,128 1.256 1.256 Pennsylvania 11,676,721 8,744,986 1.335 1.335 Rhode Island 847,621 627,945 1.350 1.350 South Carolina 3,532,858 2,885,636 1.224 1.224 South Dakota 912,508 757,264 1.205 1.205
Tennessee 7,004,112 5,784,562 1.211 1.211
Texas 26,821,716 20,332,044 1.319 1.319 Utah 3,141,938 2,604,471 1.206 1.206
Vermont 445,373 367,539 1.212 1.212 Virginia 8,926,148 6,759,203 1.321 1.321 Washington 9,936,986 8,276,568 1.201 1.201
West Virginia 563,473 424,942 1.326 1.326 Wisconsin 7,248,667 5,891,541 1.230 1.230 Wyoming 432,812 349,769 1.237 1.237 Sources: U.S. Bureau of the Census, American Factfinder. 2007 Economic Census. Sector 23: Subsectors 236 220 (Commercial Building Construction) . Sector 23: EC0723A1: Construction: Geographic Area Series: Detailed Statistics for Establishments: 2007. Notes: The Census Bureau withheld data for some states.



### 6

- A.5 STATE SALES TAX RATE S

Table 6

- A

- 8 State Sales Tax Rates

State Combined State and Local Tax Rate

% State Combined State and Local Tax Rate

% State Combined State and Local Tax Rate

% Alabama 8.55 Kentucky 6.00 North Dakota 5. 9 0 Alaska 1.3 0 Louisiana 8.75 Ohio 7. 10 Arizona 7 .15 Maine 5.5 0 Oklahoma 8. 35 Arkansas 8. 90 Maryland 6.00 Oregon

-- California 8. 45 Massachusetts 6.25 Pennsylvania 6.40 Colorado 6. 05 Michigan 6.00 Rhode Island 7.00 Connecticut 6.35 Minnesota 7. 2 0 South Carolina 7. 20 Delaware

-- Mississippi 7.00 South Dakota 5. 40 Dist. of Columbia 5.75 Missouri 7.45 Tennessee 9. 4 5 Florida 6.65 Montana

-- Texas 7.9 0 Georgia 7. 05 Nebraska 6.00 Utah 6.70 Hawaii 4. 40 Nevada 7.85 Vermont 6.05 Idaho 6.05 New Hampshire

-- Virginia 5. 60 Illinois 8.05 New Jersey 6.95 Washington 8. 90 Indiana 7.00 New Mexico 6. 60 West Virginia 6. 10 Iowa 6.85 New York 8. 40 Wisconsin 5.45 Kansas 7. 85 North Carolina 6. 90 Wyoming 5. 50 Source: The Sales Tax Clearinghouse at https://thestc.com/STRates.stm (A cc essed on January 22 , 201 4 )

.

### 6

- A

- 12 6

- A.6 DATA FOR MARKUP COMP ARISON DOE performed an analysis of the accuracy of the overall markups estimated for baseline residential boilers by comparing the online retail price with DOE’s estimated retail price in each product class

. DO E collect ed online retail prices along with detailed product characteristics from three main residential boiler online retailers: eComfort, a 

### Pex Supply , b 

### and Younits. c 

### Based on product attributes , including input capacity, AFUE , fuel type , and heat medium , DOE was able to assign product class and efficiency level for all models and calculated the average retail price for the baseline models in each product class

. However, the sample size of oil

- fired residential boilers collected was too small to make robust price comparison ; therefore, DOE only compared the price of gas
- fired hot water boilers and gas

- fired steam boilers in this analysis

. It is believed that the distribut ion for online retaile rs is different from the conventional distribution channel. Hence, in order to have the DOE’s estimated prices comparable to the online retail price, DOE constructed a separate set of prices based on the manufacturer product ion cost i ncluding the cost of a draft inducer and applied the manufacturer markup, wholesaler markup and mechanical contractor markup to derive the estimated retail prices

. Since sales taxes are not included in the retail prices shown on the website , DOE did not include sales taxes in the retail price estimation. The markup is calculated for the replacement distribution channel as described in chapter 6, Markups to Determine Product Cost

. The result of comparing the online average retail price s and D OE’s estimated price s is summarized in Table 6

- A

- 9

.
Table 6

- A

- 9 Price Comparison of Baseline Residential Boilers

Product Class Baseline AFUE (%) Acceptable AFUE range (%) Average Online Retail Price DOE's Estimated Price Gas

- fired Hot Water Boiler 82 82~83 $ 1881.99 $ 1872.35 Gas

- fired Steam Boiler 80 80~82 $ 2004.62 $ 1914.15


### DOE’s estimated price s for gas

- fired boilers are consistent with the average online retail price. For gas

- fired steam boilers, because none of the existing model s ha ve an AFUE below 81%, the market is capturing models with efficiency slightly higher than the baseline model , which could explain the slightly higher online retail price. Detailed model information used in the comparison is presented in Table 6

- A

- 10 below

.

a Website for eComfort: http://ecomfort.com/ b Website for Pex Supply: http://www.pexsupply.com/

c Website for Younits: http://www.younits.com/

### 6

- A

- 1 Table 6

- A

- 10 List of Residential Boiler Prices from Online Websites

Manufacturer Model Number AFUE (%) Input Capacity

(BTU ) Fuel Type Heat Medium Sales Price

($) URL

Peerless MI

- 04

- SV 82.1 105,000 Natural Gas Hot Water 1629.99 http://www.younits.com/residential

intermittent

- ignition

- water

- boiler

- 105000

- p
8529.html

Williamson

Thermoflo GWA

- 105NI 82.9 105,000 Natural Gas or Propane Hot Water 1989.12 http://www.younits.com/105ni

- spark

ignition

- cast

- iron

- boiler

- 105000

- p
5837.html

Laars JVS100 82 100,000 Natural Gas or Propane Hot Water 1814.99 http://www.younits.com/jvs100

- cooper
electronic

- ignition

- fired

- water

- boiler

100000

- p
- 12625.html

Pennco 15B096FE 82 96,000 Natural Gas or Propane Hot Water 1546.99 http://www.younits.com/15b096fe

electronic

- ignition

- cast

- iron

- fired

- water

boiler

- 96000

- p
- 12640.html

New Yorker CG40DNI

- L2 82.3 96,000 Natural Gas Hot Water 1469.99 http://www.younits.com/cg40dni

- spark

ignition

- cast

- iron

- boiler

- 70000

- p
12735.html

Crown AWI095E 82.3 95,000 Natural Gas Hot Water 1769.99 http://www.younits.com/awi095e

- aruba

residential

- electronic

- ignition

- water

- boiler

mounted

- less

- pump
- 95000

- p
- 11535.html

Crown AWI095E 82.3 95,000 Natural Gas Hot Water 1769.99 http://www.younits.com/awi095e

- aruba

residential

- electronic

- ignition

- water

- boiler

piped

- left

- less

- pump
- 95000

- p
- 11536.html

Crown AWI095E 82.3 95,000 Natural Gas Hot Water 1469.99 http://www.younits.com/awi095e

- aruba

residential

- electronic

- ignition

- water

- boiler

less

- pump
- 95000

- p
- 11537.html

Burnham P204

- EI

- NG 82.3 96,000 Natural Gas Hot Water 2039.95 http://www.pexsupply.com/Burnham

- P204

- EI

- NG

- P204

- 96000

- BTU

- Electronic

Ignition

- Cast

- Iron

- Boiler

- 11374000

- p

New Yorker CG40DNI

- G2 82.3 96,000 Natural Gas Hot Water 1479.95 http://www.pexsupply.com/New

- Yorker

CG40DNI

- G2

- 70000

- BTU

- Output

- Spark

Ignition

- Cast

- Iron

- Boiler

- Nat

- Gas

### 6

- A

- 2 Burnham 204NIL

- TEI2 82.3 96,000 Natural Gas Hot Water 1962.65 http://ecomfort.com/204nil

- tei2

- gas
- fired

- hot

- water

- boiler

- taco

- 007

- pump
- ng
- up
- to

- 2k

- elevation

- 96000

- btu

- 2016.html

Burnham 204NIL

- GEI2 82.3 96,000 Natural Gas Hot Water 2193.39 http://ecomfort.com/204nil

- gei2

- gas
- fired

- hot

- water

- boiler

- ups
- 15

- 58

- pump
- ng
- up
- to

- 2k

- elevation

- 96000

- btu

- 15476.html

New Yorker CG40CNI

- TE2 82.3 96,000 Natural Gas Hot Water 1687.95 http://ecomfort.com/cg40cni

- te2

- hot

- water

- boiler

- electronic

- ignition

- taco

- 007

- pump
- natural

- gas
- 96000

- btu

- 13142.html

Burnham 204PIL

- TEI2 82.3 96,000 Propane Hot Water 1962.65 http://ecomfort.com/204pil

- tei2

- gas
- fired

- hot

- water

- boiler

- taco

- 007

- pump
- lp

- up
- to

- 2k

- elevation

- 96000

- btu

- 15446.html

New Yorker CG40CNI

- LE2 82.3 96,000 Natural Gas Hot Water 1396.95 http://ecomfort.com/cg40cni

- le2

- hot

- water

- boiler

- electronic

- ignition

- less

- pump
- natural

- gas
- 96000

- btu

- 12442.html

Burnham 204NIL

- GEI5 82.3 96,000 Natural Gas Hot Water 2109.16 http://ecomfort.com/204nil

- gei5

- gas
- fired

- hot

- water

- boiler

- ups
- 15

- 58

- pump
- ng
- 2k

- to

- 5k

- elevation

- 96000

- btu

- 15536.html

Burnham 204PIL

- BEI2 82.3 96,000 Propane Hot Water 2193.39 http://ecomfort.com/204pil

- bei2

- gas
- fired

- hot

- water

- boiler

- nrf

- 22

- pump
- lp

- up
- to

- 2k

- elevation

- 96000

- btu

- 15466.html

Burnham 204NIL

- BEI2 82.3 96,000 Natural Gas Hot Water 2193.39 http://ecomfort.com/204nil

- bei2

- gas
- fired

- hot

- water

- boiler

- nrf

- 22

- pump
- ng
- up
- to

- 2k

- elevation

- 96000

- btu

- 15456.html

Burnham 204NIL

- TEI5 82.3 96,000 Natural Gas Hot Water 1962.65 http://ecomfort.com/204nil

- tei5

- gas
- fired

- hot

- water

- boiler

- taco

- 007

- pump
- ng
- 2k

- to

- 5k

- elevation

- 96000

- btu

- 15496.html

Burnham 204NIL

- BEI5 82.3 96,000 Natural Gas Hot Water 2193.39 http://ecomfort.com/204nil

- bei5

- gas
- fired

- hot

- water

- boiler

- nrf

- 22

- pump
- ng
- 2k

- to

- 5k

- elevation

- 96000

- btu

- 15516.html

Burnham 204PIL

- TEI5 82.3 96,000 Propane Hot Water 1962.65 http://ecomfort.com/204pil

- tei5

- gas
- fired

- hot

- water

- boiler

- taco

- 007

- pump
- lp

- 2k

- to

- 5k

- elevation

- 96000

- btu

- 15506.html

Burnham 204PIL

- BEI5 82.3 96,000 Propane Hot Water 2193.39 http://ecomfort.com/204pil

- bei5

- gas
- fired

- hot

- water

- boiler

- nrf

- 22

- pump
- lp

- 2k

- to

- 5k

-

### 6

- A

- 3 elevation

- 96000

- btu

- 15526.html

New Yorker CG40CPI

- TE2 82.3 96,000 Propane Hot Water 1687.95 http://ecomfort.com/cg40cpi

- te2

- hot

- water

boiler

- electronic

- ignition

- taco

- 007

- pump
liquid

- propane
- 96000

- btu

- 13160.html

Burnham 204PIL

- GEI2 82.3 96,000 Propane Hot Water 2193.39 http://ecomfort.com/204pil

- gei2

- gas
- fired

hot

- water

- boiler

- ups
- 15

- 58

- pump
- lp

- up
- to

2k

- elevation

- 96000

- btu

- 15486.html

Burnham 204PIL

- GEI5 82.3 96,000 Propane Hot Water 2193.39 http://ecomfort.com/204pil

- gei5

- gas
- fired

hot

- water

- boiler

- ups
- 15

- 58

- pump
- lp

- 2k

- to

5k

- elevation

- 96000

- btu

- 15546.html

New Yorker PVCG40PI

- T2 82 96,000 Propane Hot Water 1799.95 http://ecomfort.com/pvcg40pi

- t2

- hot

- water

boiler

- taco

- 007

- pump
- liquid

- propane
96000

- btu

- 12514.html

New Yorker PVCG40NI

- T2 82 96,000 Natural Gas Hot Water 1799.95 http://ecomfort.com/pvcg40ni

- t2

- hot

- water

boiler

- taco

- 007

- pump
- natural

- gas
- 96000

- btu

- 12510.html

Smith GBX

- 105 82 105,000 Natural Gas or Propane Hot Water 1599.99 http://www.younits.com/atmospheric

vented

- water

- fired

- boiler

- 105000

- p
8604.html

Smith GVX

- 105 82 105,000 Natural Gas or Propane Hot Water 1959.99 http://www.younits.com/power

- vented

water

- fired

- boiler

- 105000

- p
- 8622.html

Crown Boiler Co. AWR105ENST2P8U 82.9 105,000 Natural Gas Hot Water 1855.73 http://ecomfort.com/aruba

- 4

- 105000

- btu

hot

- water

- boiler

- ng
- 829

- afue

- chimney

vented

- 88784.html

Crown Boiler Co. AWR105ELST2PSU 82.9 105,000 Propane Hot Water 1881.92 http://ecomfort.com/aruba

- 4

- 105000

- btu

hot

- water

- boiler

- lp

- 829

- afue

- chimney

vented

- 88769.html

Crown Boiler Co. AWR105ENST2PSU 82.9 105,000 Natural Gas Hot Water 1855.73 http://ecomfort.com/aruba

- 4

- 105000

- btu

hot

- water

- boiler

- ng
- 829

- afue

- chimney

vented

- 88770.html

Crown Boiler Co. AWR105ELST2P8U 82.9 105,000 Propane Hot Water 1881.92 http://ecomfort.com/aruba

- 4

- 105000

- btu

hot

- water

- boiler

- lp

- 829

- afue

- chimney

vented

- 88783.html Peerless MI

- 04

- SPRK

- WPC

- 82.1 105,000 Propane Hot 1900.18 http://ecomfort.com/series

- mi

- 105000

- btu

-

### 6

- A

- 4 LP Water hot

- water

- boiler

- lp

- 821

- afue

- chimney

vented

- 0

- to

- 2000

- ft

- altitude

- 92188.html

Peerless MI

- 04

- SPRK

- WPC

N 82.1 105,000 Natural Gas Hot Water 1900.18 http://ecomfort.com/series

- mi

- 105000

- btu

hot

- water

- boiler

- ng
- 821

- afue

- chimney

vented

- 0

- to

- 2000

- ft

- altitude

- 92187.html

Peerless DE

- 04

- SPRK

- WPC

LP 82 105,000 Propane Hot Water 2065.35 http://ecomfort.com/de

- 04

- gas
- fired

- hot

water

- boiler

- electronic

- ignition

- taco

- 007

- pump
- up
- to

- 2000

- ft

- altitude

- lp

- 105000

- btu

21710.html

Peerless DE

- 04

- SPRK

- WPC

N 82 105,000 Natural Gas Hot Water 2065.35 http://ecomfort.com/de

- 04

- gas
- fired

- hot

water

- boiler

- electronic

- ignition

- taco

- 007

- pump
- up
- to

- 2000

- ft

- altitude

- ng
- 105000

- btu

21709.html

New Yorker CGS40ANI

- ME2 81.4 105,000 Natural Gas Steam 1881.95 http://www.pexsupply.com/New

- Yorker

CGS40ANI

- ME2

- CGS

- A

- 65000

- BTU

Output

- Spark

- Ignition

- Cast

- Iron

- Steam

Boiler

- Nat

- Gas

New Yorker CGS40ANI

- ME2 81.4 105,000 Natural Gas Steam 2065.95 http://ecomfort.com/cgs40ani

- me2

- steam

boiler

- electronic

- ignition

- probe

- type

- lwco

natural

- gas
- 86000

- btu

- 2140.html

New Yorker CGS40API

- ME2 81.4 105,000 Propane Steam 2065.95 http://ecomfort.com/cgs40api

- me2

- steam

boiler

- electronic

- ignition

- probe

- type

- lwco

liquid

- propane
- 86000

- btu

- 12504.html