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service contracts??

Steve Eayrs
Steve Eayrs Member Posts: 424
in THE MAIN WALL
Was wondering the pros and cons of service contracts.
I have been considering starting something up, as no one in this area, that I know of, does this. Would it be wise to only offer contracts on new equipment we install? No a/c in this area to speak of, but lots of hot water boilers.
Am mainly looking at residentual/light commercial.
I imagine the contract is for labor only? If not what material is generally covered?
thanks, Steve

Comments

  • John Mills_3
    John Mills_3 Member Posts: 221
    Great for biz

    We went from 0 to 2000 contracts in just a few years. We've grown like crazy and keep the techs busy when the service calls aren't rolling in. Customers get their maintenance done which many wouldn't be doing anyway. You create loyalty with this, we're much more likely to replace equipment with our plan customers. We give them priority service if something breaks down and a 10% discount (which they could get anyway with a coupon). We have many scheduled to clean their units in the mid season - like now, when we have very few repair calls coming in. Our renew rate is very high and most take us with them when they move. Those leaving the area leave the plan for the new buyer and we get them as well.
  • Warmfoot
    Warmfoot Member Posts: 127
    Service Contracts

    Would anyone have a "sample" contract that they could send to me so I can understand the language in them more? We do annual maintenence on a lot a systems, but do not have an actual contract with the customer. ernie@masterhydronics.com

    Ernie Bogue
    Master Hydronics LLC
    PO Box 779
    Keyport, WA 98345
    (360) 394-2049

    To Learn More About This Contractor, Click Here to Visit Their Ad in "Find A Contractor"
  • Rocky
    Rocky Member Posts: 121
    Ditto, service contracts

    I, too, am interested in learning about service contracts from those who already use them. Was recently approached by a very large apartment complex that has several boilers, water heaters etc. They were interested in starting a service contract with my company. I would like to do some of this, but don't really know how to go about it. Much like above gentlemen's posts, would like to know more. If anyone has info on what is usually covered, how much, what's excepted, etc...
    thanks in advance,
    Rocky
  • Jim_47
    Jim_47 Member Posts: 244
    service contracts

    Rocky please send me your snail mail address I will forward you a copy of mine as well asto anyone else that would like a copy.
    send your snail mail address to: MRHEAT1@aol.com
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