Businesses across the country are feeling the effects of COVID-19. More specifically, service contractors are struggling to make ends meet. Rather than depleting savings or retirement funds, there’s another way to make money in these trying times, maintenance agreements.
For service contractors who aren’t offering maintenance agreements, this is your wakeup call. Maintenance service agreements provide your business with added revenue throughout the year, but more importantly, during slow times.
Typically, each company offers a different type of agreement(s) but there is one thing that should remain constant: recurring revenue. They say there’s no time like the present, and this is a time when you want recurring revenue.
The Real Value of Maintenance Agreements
Consistent Cash Flow
Many homeowners have a difficult time spending several hundred dollars up-front for a year-long service. Breaking up the cost into more manageable payments helps your customer and ensures you’ll see that money each and every month.
Ex. A customer may have to think about coming up with $219 for a maintenance agreement upfront. If it’s broken down to $18.25 per month, that is much more reasonable to afford.
80-90% Renewal
Homeowners who sign on to be a maintenance agreement customer become a customer for life 80-90% of the time. That means your turnover rate is very low and you can count on that money month after month, year after year.
60% Buy More
Once a homeowner decides to be a maintenance agreement customer, they are 60% more likely to purchase additional services and products from their service provider. This is because of the rapport and trust that is built with their service contractor.
Our goal is to create and maintain your profitability. If you have further questions about our maintenance service agreements program or want to learn more about what we can offer you at FieldEdge, please click here.
