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Service contracts-what's the point?

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  • Service contracts-what's the point?

    For plumbing? I can see for hvac but plumbing? What's to inspect that warrants your time and their money? There's a few items for sure but how much goes into them?
    Buy cheap, buy twice.

  • #2
    Re: Service contracts-what's the point?

    I dont write it up in a formal service contract but I do regularly scheduled cleaning jobs. No monthly cleanings yet, but I do 3 month and six month cleanings. I keep track of the dates and call them when its time.

    The first drain cleaning company I worked for had over 50 service contract cleaning jobs per month. 10 were at one hotel monthly.

    Service contracts = steady income.

    In drain cleaning its mostly born of fear. One that I do every three months is a greasetrap line that when it stops up it floods the entire first floor offices. almost into the lobby area. They would rather have me clean it every three months than risk flooding again.

    Lenny

    Pronounced A-Bear Drain Care

    I know, it doesn't make sense.


    http://www.hebertdraincare.com

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    • #3
      Re: Service contracts-what's the point?

      Our service contracts all involve the Jetter. we have a hospital with two lines, one has a belly right after a women's restroom and the other is a grease line in their kitchen.

      I also jet a clinic with a belly in a line leading from the employee restroom.

      Come to think of it, I believe all of our service contracts involve jetting in commercial buildings, where they don't want to, or can't shut down for a day or two to do a permanent repair.
      No, it's not rocket science, it's plumbing and unlike rocket science it requires a license.

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      • #4
        Re: Service contracts-what's the point?

        the only real preventative maintenance i can see is either drain cleaning or servicing water heaters/ tankless heaters.

        typically i have the customers call me to schedule my cleanings. sure i have tons of repeat cleanings and jettings, but only 1 is actually an ongoing contract. the rest are repeats that they call on.

        who's responsible if you have a service contract for drain cleaning and it plugs up prior to your next cleaning

        i guess if you sell a lot of cleaning contracts, you can keep 1 guy busy just on cleaning and jetting.

        come to think of it, a pool man and a gardner are 2 trades that basically perform a weekly service contract/ route. same goes with the water delivery man. so having a contract to come out every few months can work if you can fill all the blank spots. but remember you need to be on your schedule and not theirs.

        rick.
        phoebe it is

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        • #5
          Re: Service contracts-what's the point?

          Typically just a once a year inspection for $$ gets them a discount on labor and a plumbing professional evaluating their system.

          The beauty of the Service Contract is it's guaranteed money up front! You are paid months before having to provide any service at all. Then, you dictate when to provide that service.

          It puts you back face to face with the customer. Another opportunity to sell your services. In 30 minutes you can walk through the house and point out any potential problems. Clear a tub drain at no charge or at a discount.

          I like to use the Soft Sell approach. Plant a seed about the age of the water heater, garbage disposal, whatever. Then, when it acts up they will call you because you brought it to their attention. And they can use your contract discount of 10% or whatever.

          The Contract needs to be clear on what it provides and what it doesn't. The Contract itself isn't the money maker, it's future sales and their loyalty to you that is.

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