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  • Service plans

    For 2011 I will be offering probably three levels of service plans to my customers.

    Bronze: An annual checkup and 10% off any service done during that year for a flat rate of $129 or something along those lines.

    Silver: An annual checkup and 10% off any service done during that year. Plus priority scheduling and no emergency fees for a flat rate of $199 or something along those lines

    Gold: An annual checkup and necessary services (drips, leaks, faucets, water heaters, drain cleaning, etc.) completed for zero out of pocket expense (not including underground work or existing conditions) for a monthly fee of $150 or something along those lines.

    Any ideas? and have any of you used a service plans with success?
    Distractions are everywhere, don't lose sight of your dream.

  • #2
    Re: Service plans

    Originally posted by Devine Plumbing View Post
    For 2011 I will be offering probably three levels of service plans to my customers.

    Bronze: An annual checkup and 10% off any service done during that year for a flat rate of $129 or something along those lines.

    Silver: An annual checkup and 10% off any service done during that year. Plus priority scheduling and no emergency fees for a flat rate of $199 or something along those lines

    Gold: An annual checkup and necessary services (drips, leaks, faucets, water heaters, drain cleaning, etc.) completed for zero out of pocket expense (not including underground work or existing conditions) for a monthly fee of $150 or something along those lines.

    Any ideas? and have any of you used a service plans with success?
    i'm using simple math. for the 129.00 to pay off the customer would need to have spent 1290.00 with you for the year. the 199.00 would be 1990.00 for the year and the 150.00 a month would be 1800.00 for the year.

    i know that the majority of my customers don' spend that kind of money on service work with me in a year.

    i think a smart consumer will not see any value in this.

    rick.
    phoebe it is

    Comment


    • #3
      Re: Service plans

      Originally posted by Devine Plumbing View Post
      For 2011 I will be offering probably three levels of service plans to my customers.

      Bronze: An annual checkup and 10% off any service done during that year for a flat rate of $129 or something along those lines.

      Silver: An annual checkup and 10% off any service done during that year. Plus priority scheduling and no emergency fees for a flat rate of $199 or something along those lines

      Gold: An annual checkup and necessary services (drips, leaks, faucets, water heaters, drain cleaning, etc.) completed for zero out of pocket expense (not including underground work or existing conditions) for a monthly fee of $150 or something along those lines.

      Any ideas? and have any of you used a service plans with success?
      Service plans are fine for a certain demographic. They are willing to throw money at something for whatever peace of mind it gives them.

      For businesses, it's typically a something for nothing revenue generator. Ok with me if anyone uses them, I might one day. Just the way I feel about them.

      The priority scheduling any company lists in their service plan makes me think that if anyone doesn't have a plan with them then they should never, ever call them because they are NOT a priority anymore.

      I don't know anyone, anywhere, that will pay a $150.00 a month for a preventative maintenance plumbing plan. At least in residential.



      J.C.
      Last edited by BobsPlumbing; 11-18-2010, 10:50 PM.

      Comment


      • #4
        Re: Service plans

        Originally posted by PLUMBER RICK View Post
        i'm using simple math. for the 129.00 to pay off the customer would need to have spent 1290.00 with you for the year. the 199.00 would be 1990.00 for the year and the 150.00 a month would be 1800.00 for the year.

        i know that the majority of my customers don' spend that kind of money on service work with me in a year.

        i think a smart consumer will not see any value in this.

        rick.
        He does not say monthly for the bronze and silver plans if I'm reading correctly.


        J.C.

        Comment


        • #5
          Re: Service plans

          jc, that's why it's simple math. the 10% discount and the annual charge were used to show that the numbers don't jive unless you would spend 1290. a year or 1990 a year on plumbing services.

          i'm glad i didn't use advanced math

          very few of my private accounts spend that kind of money with me annually.

          rick.
          phoebe it is

          Comment


          • #6
            Re: Service plans

            Originally posted by PLUMBER RICK View Post
            jc, that's why it's simple math. the 10% discount and the annual charge were used to show that the numbers don't jive unless you would spend 1290. a year or 1990 a year on plumbing services.

            i'm glad i didn't use advanced math

            very few of my private accounts spend that kind of money with me annually.

            rick.
            You're smoking crack.


            J.C.

            Comment


            • #7
              Re: Service plans

              jc, the 10% discount is what you're missing. you would have to spend 1290 in the year on service for the 129.00 annual plan to break even

              hope your brain hasn't gone up in smoke

              rick.
              phoebe it is

              Comment


              • #8
                Re: Service plans

                Originally posted by PLUMBER RICK View Post
                i'm using simple math. for the 129.00 to pay off the customer would need to have spent 1290.00 with you for the year. the 199.00 would be 1990.00 for the year and the 150.00 a month would be 1800.00 for the year.

                i know that the majority of my customers don' spend that kind of money on service work with me in a year.

                i think a smart consumer will not see any value in this.

                rick.
                You are right most of my customers do not spend that type of money in a years time. However, the majority of my repeat residential customers probably spend anywhere between $500 and $1000 annually on services that would be covered. Some more and some less. However, the peace of mind also comes at a cost. The numbers are just preliminary at this point. I will be doubling my income in 2011 and just looking at different possibilities for doing so.
                Distractions are everywhere, don't lose sight of your dream.

                Comment


                • #9
                  Re: Service plans

                  I'll be using the same plan that's worked for us for 40 yrs.
                  Customer calls... Go do work... Collect money.

                  Comment


                  • #10
                    Re: Service plans

                    Originally posted by PLUMBER RICK View Post
                    jc, the 10% discount is what you're missing. you would have to spend 1290 in the year on service for the 129.00 annual plan to break even

                    hope your brain hasn't gone up in smoke

                    rick.
                    Ricky-Rick, believe it or not others do have similar mathematical skills as yourself. What I think you are missing is because he did not list an actual number with some of the features in the Bronze and Silver plans, then there is no value associated with those features to calculate into the equation.

                    The Bronze plan Devine lists does not say that it only features 10% off at $129.00. It also included an annual checkup. What's the value of that? To some it is 0. To others, it may feel worth $150.00 for that preventative inspection.

                    The Silver plan does not say that it only features 10% off at $199.00. It also includes an annual checkup, priority scheduling, an no emergency fees.
                    That also has value to a certain demographic even without any number associated with it. That's why it's called a "Service Plan" & not a break even plan.

                    Merely using 10% versus the plan costs to a theoretical break even point is an incorrect equation from the start as there is unnumbered value in the formula.

                    I do alright now and again at number and word problems. The numbers are easy.

                    Keep smokin' buddy.


                    J.C.

                    Comment


                    • #11
                      Re: Service plans

                      J.C. is right

                      He's not giving 10% off the price of the Service Plan.

                      He's giving 10% off the repairs that are needed during the Service Period.

                      The only added value in this formula is in the favor of Devine Plumbing, Inc.

                      Comment


                      • #12
                        Re: Service plans

                        maybe with that doubled income in 2011 he will be able to afford to get his plumbing license, and all those other silly things he's missing.
                        The Other Rick

                        Comment


                        • #13
                          Re: Service plans

                          Originally posted by JCsPlumbing View Post
                          Service plans are fine for a certain demographic. They are willing to throw money at something for whatever peace of mind it gives them.

                          For businesses, it's typically a something for nothing revenue generator. Ok with me if anyone uses them, I might one day. Just the way I feel about them.

                          The priority scheduling any company lists in their service plan makes me think that if anyone doesn't have a plan with them then they should never, ever call them because they are NOT a priority anymore.

                          I don't know anyone, anywhere, that will pay a $150.00 a month for a preventative maintenance plumbing plan. At least in residential.
                          J.C.

                          Some Plumbing companies around me offer service plans for residential.

                          By all means I'm not trying to slander anyone or their business practices, I find that most customers want a Plumber, not a salesman coming to their home, and I'll leave it at that.

                          If a customers asks about potential plumbing problems, I'll give them my professional opinion. It's rare for me to go out of my way to "suggest" something unless it's a glaring issue that I see.

                          Comment


                          • #14
                            Re: Service plans

                            This would be a great time to post a cute animal video...but I will resist.




                            I can't get in the door with these "service agreements" because people are only spending when they have to...and rarely elective.


                            Why do I want to bump that system, and why do I want to work at cheaper rates as a result?


                            Just hold steady and the work will find you.

                            Of course, I'm saying that for having years under my belt but I made sure I've made it known that I can be trusted.

                            The rest mends itself.
                            Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

                            Comment


                            • #15
                              Re: Service plans

                              Originally posted by plumberscrack View Post
                              J.C. is right

                              He's not giving 10% off the price of the Service Plan.

                              He's giving 10% off the repairs that are needed during the Service Period.

                              The only added value in this formula is in the favor of Devine Plumbing, Inc.

                              exactly. the 10% discount is for future repairs. for the customer to break even with the 129.00 investment, they would have to spend 1290.00 during the year to pay back the initial 129.00 investment.

                              i don't see what's so difficult to understand

                              the same fools that will buy into this are also the ones that will buy a timeshare for 20,000.00 and then spend another 1000.00 a year in maintenance fees. remember in vegas, the house always comes out ahead in the long run.

                              giving them a free home assessment is a 10 minute walk through. i'm sure that we spend more than 10 minutes with the customer discussing things.

                              i'm with big jim. customer calls and i get there when i can. fix it and give them the bill. don't sell them a promise to fix it in the future at a 10% discount if you sign up for a service plan. sounds more like a used car salesman

                              the majority of those home warranty contracts that the realtors give you are worthless and the homeowner comes back to paying a real plumber to fix it for full fare.

                              rick.
                              phoebe it is

                              Comment

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