Why Service Agreements Are Important to HVAC Companies

New Installations

The national average says 10% of your service agreements will turn into change outs every year. If you have 1000 service agreements, that’s approximately 100 change outs a year. What contractor wouldn’t love an additional 100 installs a year. Considering new installs equate to about 80% of a contractor’s income, it is imperative to have more service agreements in your company.

During the off season, it is often a difficult time of year to stay profitable.  No business owner wants to lay off their good employees.  Service agreements keep your good employees busy and the company profitable.  It also allows the technician to find problems or sell new units, which brings in more revenue for the company.  

Using direct mail, telemarketing, digital media etc., is very expensive.  Service agreements help eliminate most of these expenses.  You now have a reason to contact the customer several times a year without being obtrusive.  Customers welcome your call because they are expecting you and are happy to hear from you.  Communication is key.

During scheduled visits your technician can discuss specials you may have.  Air cleaners, uv lights, rebates on new equipment, etc.  During the inspections, your technician should be looking for other problems in their system.  Customers often mention things that give opportunities to sell.  There are many ways to stay profitable using service contracts.