What is Maintenance Agreement, and How does it Optimize your Business?

ZenTrades

What Is Maintenance Agreement, And
How Does It Optimize Your Business?

Field Service Management
May 31, 2023
9 Min Read

Contracts for home maintenance, which are frequently offered as service agreements or memberships, help home service companies to guarantee continuous income.

An annual or monthly preventive maintenance contract ensures future billable work in a market where jobs can be difficult to predict for HVAC, electrical, plumbing, and other trade contractors who conduct repairs and essential house maintenance.

It also allows you to schedule additional time in a client’s residence, foster brand loyalty, and grant homeowners special access to your services.

While we will discuss the importance of maintenance agreements, this article will also teach readers how to market them.

Using ZenTrades‘ Maintenance Agreement Software, you can ensure your clients the best service available, creating loyal customers and high referrals.

Request a free ZenTrades demo today to increase service agreement sales and streamline your contracting business revenue!

What is a Maintenance Agreement?

A maintenance agreement outlines a contractor’s procedures to service, maintain, and repair a customer’s equipment or other assets. The two parties agree on the terms to ensure the equipment performs satisfactorily.

Typical terms seen in maintenance agreements mention the following:

Responsibilities: Describe the contractor’s obligations under the terms of the contract.
Duration: The period the agreement covers and the methods for ending it.
Payment: The conditions and sums of payment.

As well as describing the frequency and extent of maintenance visits, maintenance agreements may also outline warranties or guarantees offered by the contractor.

Different maintenance schedules may be necessary depending on the equipment or maintained property.

An HVAC system, for instance, would need inspections every three months, but a commercial kitchen might need visits every month.

Additionally, there may be differences in the extent of maintenance, with some agreements merely covering routine cleaning and inspections and others possibly including more extensive repairs or renovations.

To ensure that a maintenance agreement’s conditions are reasonable, both parties must carefully analyze and bargain over them. Both parties can avoid misunderstandings and disagreements in the future through clear communication and documentation.

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The Importance of Maintenance Agreements for Your Service Business

Because of these service agreements, business owners must have detailed and exact maintenance contracts and maintain the quality of the initial job. Ensure recurrent business from a consumer instead of just one-time jobs.

Keep technicians occupied and cash coming throughout the lean months for seasonal businesses like HVAC and pool service providers.

Develop relationships with customers through regular maintenance service visits to decrease customer churn.

Expand the upselling chances you give your technicians so they can earn more commission and boost your company’s bottom line.

1. Boost Consistent Revenue

As a service provider, you know there are busy seasons when business is booming and slower seasons when employment is scarce. While these peaks and troughs in some service sectors, like HVAC and plumbing, vary with the season, every business must endure slow times when sales might drastically decline.

2. Enhance Client Contentment

Your business must know your customers’ needs if you have annual maintenance service agreements. Thanks to your dedicated customer service, you have more chances to wow, serve, and satisfy homeowners.

Maintenance agreements support revenue stabilization and client base expansion during these challenging economic times. Even when homeowners aren’t calling you with an immediate problem, you can keep up a stream of billable preventive services by arranging routine maintenance and following up with current clients.

The chance to upsell additional services or goods, such as upgrades or replacements for worn-out equipment, can also be found in maintenance contracts. During maintenance visits, technicians can boost their income and help the company develop by looking for possibilities for upselling.

Extensive maintenance contracts can be valuable for contractors trying to boost sales, develop client connections, and offer top-notch service.

How to Create the Ultimate Maintenance Agreement for Your Services?

Set a reasonable price.

This changes depending on your industry, rivals, and unique business characteristics. Bottom line: You should perform enough of your math to ensure service agreements work out well for your company and don’t become expensive or wasteful.

Set appropriate contract conditions.

Some home maintenance contracts operate month-to-month, while others have 12-month terms (learn more about renewal procedures below). Find a policy clause that will appeal to homeowners open to trying out a contract agreement but want to avoid making a big commitment.

Research

Before offering maintenance agreements to clients, contractors should conduct thorough research. Obtaining specific details, such as the brand, model, and age of the machinery or property being serviced, is part of this. Contractors may use this information to create a more effective maintenance schedule and spot future problems.

Contracts for new equipment

Attaching an equipment-based contract to a specific piece of new equipment may be advantageous for businesses that install it. In addition to providing a transparent record of the maintenance history for future use, this can assist in guaranteeing that the equipment is adequately maintained and repaired throughout its lifecycle.

A maintenance agreement’s effectiveness depends on several variables: pricing, contract terms, renewal procedures, and due diligence. Contractors can boost revenue, create lasting customer connections, and deliver top-notch service to their clients by carefully examining these elements and creating comprehensive and efficient maintenance agreements.

Why should Technicians Know How to Upsell?

Technicians often speak with clients directly; thus, they can make sales pitches for commercial service contracts while on service calls or during fieldwork.

Customers regard service technicians as experts. There is an excellent likelihood of closing a maintenance contract transaction if the technician is passionate about closing agreements and effectively communicates the value of service agreements.

Therefore, you can reward technicians and other employees who sell agreements. This encourages them to close maintenance contract negotiations and earn additional income.

Here are some strategies technicians can use with clients to upsell successfully.

Create connections

Successfully selling service contracts requires developing a trustworthy rapport. It would be preferable to avoid communicating with your clients solely when you need their money. The best strategy to establish trust and enduring connections with your clients is to converse with them and occasionally provide free advice.

Stay in touch with them all year so they know your business alliance and can evaluate its value. This method engages consumers, sells maintenance contracts, and renews them quickly.

By conversing with the customer regarding the equipment, the technician sells agreements on accessories even when the customer already has primary equipment coverage.

Offer discounts and deals.

Maintaining good customer follow-up and service management is easy when customers sign service agreements. But they would also appreciate additional benefits like price breaks on service calls.

You can boost sales and client happiness by including special offers and discounts in the service agreement.

Multiple Pricing Options

Provide a range of service agreement plans to your clients and the ability to choose the components that the contract will cover. A comprehensive premium service agreement may provide complete parts and labor coverage. Another choice can offer a 50% repair discount on one component.

For customers, you can make programs and personalize maintenance agreements.

Everyone appreciates services that are customized to their needs.

Batch Payments

You can offer installment payment choices as an added service to assist in getting your customers the required finances. The maintenance agreement software from ZenTrades enables you to receive payment in advance and concurrently gives your clients financing choices.

Analyze your sales and current customers.

It can be low-hanging fruit to market to your current clients and start selling maintenance contracts to them. You can see your client information, service history, and service agreements.

Analyzing customer records is simple if your field service management software provides a customer management capability. If not, take a look at the CRM function of ZenTrades.

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Keep Customers Happy and your Profits High

Maintaining contented and happy clients can be significantly aided by routine maintenance visits. Contractors can assist customers in avoiding expensive repairs or replacements and increase the lifespan of their equipment or property by taking care of minor issues before they become severe.

Customers may feel more secure in their investments and develop trust in the contractor. Additionally, contractors can establish themselves as their clients’ valued advisors and partners by preserving solid relationships.

With all these new contracts and future scheduled services, your business will need upgraded tools to bring efficiency to your work and streamline your growth and revenue.

ZenTrades Field Service Management Software is one tool that will automate your operations and enhance customer service.

This will create new opportunities for upselling extra services or goods, including upgrades or replacements for worn-out equipment.

Contractors can boost their income and help their firm develop by spotting these opportunities and giving insightful advice.

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