For HVAC and Refrigeration service companies, offering preventative maintenance agreements (sometimes called service contracts or maintenance plans) can be smart for business because they provide a reliable customer base and regular source of income.
For the customer, a preventative maintenance agreement has many benefits, including prolonged equipment life, fewer repair expenses, and preventing breakdowns that can interrupt business and be a major inconvenience to owners. Regular maintenance can even reduce energy bills by increasing system efficiency.
As a service technician, you will often find yourself in the best position to sell a maintenance agreement, or at least begin the conversation with your customer. Doing so helps your employer and makes you a valued employee.
In this article, we’ll share why technicians should be involved in selling service contracts, how to explain the benefits to the customer, and how to take the sale to the next step.
Why should a service technician sell a preventative maintenance agreement?
What motivates a customer to purchase a preventative maintenance agreement? Most often, it’s saving money and preventing disruptive breakdowns.
When a customer has just had to deal with an equipment problem and an unexpected repair bill, that can be the best time to show them how to avoid going through the same thing again.
As a service technician fixing HVAC equipment problems, you’re the one who has to explain to your customer what went wrong and why. And you’ll be the one to break the news about how much the repair is going to set them back. Especially when the problem was one that could have been prevented with regular maintenance, you’re talking to the customer at exactly the right moment when they are most likely to understand the value of a preventative maintenance agreement.
And remember, bringing in more business (especially ongoing business that comes from maintenance agreements), delivers reliable revenue to your company, which helps make your job more secure.
How to explain the purpose & benefits of a maintenance agreement to a customer
The best way we’ve found to explain the purpose of preventative maintenance to a customer is to compare it to changing the oil in your car. Every so often, you get an oil change to keep your car running at it’s best, and to prevent breakdowns and expensive repairs.
Regular HVAC maintenance is very similar. It’s something you do to prevent problems and keep your equipment working reliably. Here’s a more detailed list of benefits:
Better reliability. HVAC equipment stays in its best operating condition, and technicians can catch and fix minor issues before they lead to equipment failure.
Reduce energy consumption & expenses. Equipment works more efficiently, which means it runs less and uses less energy.
Prolong the life of the system. Keeping equipment in good condition makes it last longer (just like changing the oil in your car).
Keep the warranty valid. If a customer has just installed a new system, let them know that the equipment warranty may require regular maintenance.
Discounts. When a customer gets a maintenance agreement covering multiple visits, it costs less than getting maintenance visits on an ad-hoc basis without an agreement. Contract customers may also get discounts on parts and/or labor for additional work.
Priority service for emergencies. Contract customers are often given priority for service calls, so they get faster service during a heat wave.
Reviewing the terms of the agreement
Once you’ve got their interest, you can show your customer an example of a preventative maintenance contract (this works best if your contracts are written so a customer can understand them). Review the work that the agreement covers.
Let your customer know that a preventative maintenance agreement includes a defined list of maintenance tasks (such as regular equipment inspections, cleaning, and tune-ups). It will include a number of maintenance visits over a specified period of time.
Service companies may offer different types of agreements. Some cover basic preventative maintenance tasks and others include the cost of parts and/or labor. If your company offers these options, let the customer know that there are different types of contracts to meet their needs and budget.
Next steps to close the sale
Always let the customer know what to expect next. Depending on your company’s process, It might be a call from a sales rep, or it could be an appointment for an equipment inspection.
To price a preventative maintenance agreement, an inspection of the customer’s equipment will usually be required. You’ll need to know the type, age, and condition of equipment, along with the number of equipment items. If your customer seems interested and you have the time, you might offer to collect that information while you’re there.
After you leave the customer, remember to follow through with any steps you need to take to get the customer’s information into the right hands at your company.
More helpful training topics for service technicians
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