As many HVAC contractors know, a well-run maintenance agreement program can become your most reliable income stream. And when you’re facing the winter season and the inevitable slowdown in service calls and replacement of units, it can literally become the lifeblood of your business. Since every successful business needs a reliable and consistent source of revenue, a successful maintenance agreement program can help grow the value of the company and ensure long-term success.
In addition, the maintenance agreement program will give you a more consistent cash flow, which will allow you to manage your overall purchasing process. Having a large number of customers on maintenance agreements means that renewals come in year-round, allowing cash to come in year-round.
Minimize Your Slow Periods
The slow season can wreak havoc on your business. If you have a strong customer base with maintenance agreements, these can help you fill in the slow periods. If you don’t have enough work during the slow periods, you risk losing good technicians when you have no work for them. Maintenance agreements help you keep your quality team intact by providing profitable work throughout the year.
Plan Your Work
By having an established customer base on maintenance agreements, you’ll be able to better plan your workload. You can schedule equipment checks for your current customers during the slow seasons and reserve the busy seasons for bringing in new customers.
Selling Replacement Units
Since your customers have a maintenance agreement with you and your techs see them at least twice a year, it is highly likely that you will get the call when their unit needs to be replaced. Since the customer is already familiar with your company and their regular technician, they have a sense of loyalty to your business. Unless your cost is totally out of line, you will be the first choice for their replacement business.
When your techs have continual work throughout the year, they are happier and more eager to go the extra mile for you and your customers. When your customers are comfortable with your technicians and trust your service, they become loyal clients and ambassadors for your business. Through the service you provide, your goal is to advance to the next level, eventually attaining the highest level of service. Client relationships are created through your consistent and reliable maintenance agreement program.
The client, as you would imagine, also reaps rewards. These include:
- Fewer repairs. Contractors have found that on 90 percent of repair calls, the equipment has broken down due to a lack of routine maintenance. Regular maintenance on equipment leads to fewer breakdowns, less inconvenience to the customer, and less costly repair bills.
- Priority service. Whenever possible, maintenance agreement clients are moved to the head of the line when they call for repair service. There are times of the year when that alone becomes the most important benefit.
- Customer Discounts. The value of a discount on repairs is a significant reason for your customer to have a maintenance agreement.
- Saves money. Consistently maintained equipment operates more efficiently, using less electricity or gas. That translates into lower electric and gas or oil bills. That’s money right back in the homeowner’s pocket.
- More efficient. Maintained equipment operates better. In the summer it cools quicker and dehumidifies better. With heat pumps, maintenance is absolutely essential to obtain maximum heat output.
- Better air quality. Especially in the winter, a clean evaporator and blower will circulate cleaner, healthier air. With all the issues with asthma and other respiratory conditions, it’s important to maintain clean air.
- Peace of mind. By maintaining the equipment on a regular basis, it’s less of a worry in customers’ lives. They know that you are going to be coming out to check their system twice a year and will let them know if anything is wrong.
- Written documentation. The customer won’t have to remember when the unit was repaired because the maintenance will be performed like clockwork. This will also help when they go to sell their home, as they have a complete record of the condition of the unit.
If you’re looking for ideas on how to set up your maintenance program, contact your local Source 1™ HVAC Supply Store. We have a wealth of knowledge about this and would love to assist you! Visit www.yorknow.comto find your local store.