If the units cost between $780 and $1150, why would you offer $400? They are installing it for no charge, it appears. You want a good seal around it, and if you ask them to give it to you for half what they paid for it, they may not take the time to make sure it is a good seal.
If you are getting a new AC, with a full warranty, seems like paying for the unit and having them install it for free, is a reasonable deal. You were initially going to get a "fixed" unit, with no warranty, at no cost. They have already put in time to check the unit, so they have incurred cost .
I am always looking for a good deal, but there are times when the best deal has already been offered. Trying to lower the price more is going too far, in that instance. Be careful to not overstep the bounds of good-faith dealing.
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