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Service contracts verse Agreements

Paul Mitchell_2
Paul Mitchell_2 Member Posts: 184
in THE MAIN WALL
Hey guys
Another trivia question. We currently sell service "contracts" a term left over from our oil co. days. We do not sell oil. We have two contracts...both cover all system parts, within reason, the differance is times covered. One is M-F 7-4pm. The other is 24/7. We are changing over to service "agreements" which will offer a fixed rate for service and discount on parts. Any thoughts would be appreciated. without a serious increase in volume the service contracts are not cost effective for us. My feeling is that the service agreements are fair and worth while across the board. Our annual servicing rate is going up, but a customer will automatically be considered a service agreement.
Thanks
Paul
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