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Thread: Maint agreement

  1. #1

    Maint agreement

    I need some good ideas or a layout for a maintenance agreement for my customers.
    ANy ideas or templates anyone is willing to share?
    Thanks,Ben

  2. #2
    Join Date
    Jun 2013
    Location
    Athens, Ohio
    Posts
    29
    What kind of maintenance program are you trying to offer? Just a basic "Pay us $100 right now and we'll remind you when it's time to have a check-up?" Or a full service program? There is everything from 1-2 check-ups per year with a filter and parts and labor coverage to just 1 check-up to 2 check-ups with 20% discount on repairs. How many customers do you have? How many employees and techs? Will you be able to offer true 24 hour service where you have a real person calls them and comes out within 24 hours (or in our case within an hour or two) any day or hour of the year? Our PM department is my little baby so I could help you out a bit.
    David White Services, Inc.
    Phone: 800-247-6180
    http://www.DavidWhiteServices.com

  3. #3
    I have 5 employees. We do offer 24 hour service. I would like to offer full service which is one to two times a year including a filter and necessary items to complete the cleaning. Parts would be additional but Id like to add a discount bc they are our customers. We prob have 1000 customers. How do you offer it to them? Do you have a print out? if so would you be willing to share that? and also how to you keep track of all that and when its time to contact them and schedule a PM?
    Thanks for your time and help!!
    I really appreciate it
    Ben

  4. #4
    Join Date
    Dec 2008
    Location
    Green Bay, WI
    Posts
    15
    Keep it simple. I try to price my service agreements so that they are a no brainer for my customers. You have to deliver perceived value far in excess of the cost to make it salable. Keep in mind that consumers are constantly hammered with extended warranties, service packs, and upgrades. You will have to either find a way to package your offering to make it look different from what your customers are used to seeing, or make the value proposition so appealing that they feel comfortable. I can't share my details, because I've frankly worked too hard on it to give it away, but I will say that a basic furnace/AC plan is $ per month, and includes 2 maintenance visits and a 20% discount on service. There are other perks and rewards for members, and a rewards program for members who eventually replace equipment.

    There is basically no way you will be able to reconcile the time you will invest based on the revenue that you will generate initially. Building a service plan portfolio is a commitment.
    I would recommend figuring out where you want to go with it, in other words, how many service plan customers will you be able to recruit in the next 3-5 years or more.
    In order to price your program competitively, you will need to be able to assign enough overhead to your maintenance department so it does not burden the rest of the company, but not so much as to cause it to lose a ton of money at the out-set. I'm sure the math is different for every company, but I calculated my pricing based on having 500 contracts before I even had one sold. I knew I was going to lose my shirt initially, but it would work out when the numbers made sense. When we reach 500 members, the department will stand on it's own feet. At 1000, it will turn a very nice profit.
    Our customers see the value in it, and we almost never have a cancellation.
    Last edited by beenthere; 07-28-2013 at 06:20 AM. Reason: Price

  5. #5
    Join Date
    Jun 2013
    Location
    Athens, Ohio
    Posts
    29
    We are very unusual because we offer parts and labor for repairs with our Planned Maintenance through the first 10 years of the equipment's life. Here is our plan. Pick the Plan that Fits Your Needs
    Gold Plan
    $ per year ($ per month)

    2 calls annually
    2 filters (disposable)
    Parts and labor coverage on repairs
    $ call-out fee after regular working hours
    Silver Plan
    $ per year ($ per month)

    1 call annually
    1 filter (Disposable)
    Parts and labor coverage on repairs
    $ call out fee after regular working hours

    We exclude heat exchangers, burners, water pumps, zone controls, etc. And don't cover them once the compressor is out of warranty. Then they are just on a check-up plan that includes the filter. And we also have started charging for R-22 over 1 lb per year.

    You can check out our website < Link to your webite is allowed in sig, not in post > for more info on it. I'll try to see if I can scan in one of our contracts and upload it. It's just a tri-fold brochure we get printed.

    This has been our exact plan for almost 15 years and we LOVE it as do our customers. Even with covering repairs we make some money on it and it keeps our customers loyal to us so many of them are now buying their 3rd system from us.
    Last edited by beenthere; 07-28-2013 at 06:23 AM. Reason: Prices and link
    David White Services, Inc.
    Phone: 800-247-6180
    http://www.DavidWhiteServices.com

  6. #6
    Thanks for the help guys. If you could scan that agreement that would be awesome!
    Have a great day!
    Ben

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