Maintenance Agreements, A Good Business Decision - Part 3

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    By Jim D'Amico


    In Part 2 of this series, we discussed the reason for referring to the agreements you offer by using the term “maintenance.”

    Now, if you have never offered maintenance agreements you may ask, “How do I get started?”

    • A good place to start is to determine what types of equipment you sell and install.  
    • Then, decide the amount of labor time, on average, it will take to tune up each system.  The tune up should be complete with cleaning and safety inspection of operating controls, venting, coils, blowers, motors, drains, electrical, fuel connections, lubrication and the like.
    • Ancillary equipment may be present on each system. Consequently, you should determine the additional time it will take to service each component separately.
    • Any consumables like filters, water pads and panels and the like should be priced into the maintenance agreement fee rather than priced separately.
    • Now, don’t forget to add in travel time and sales commissions because you will need to cover those expenses as well.
    • Lastly you will need to add in your desired gross profit to assure that you are making money with each agreement that you sell.

    The number of agreements your company should offer can be determined by the types of systems that you work on, such as:

    • Gas forced air
    • Oil forced air
    • Gas boiler
    • Oil boiler
    • Heat pump
    • Air conditioner
    • Air cleaner
    • Humidifier
    • etc.

    We’ll stop here because you may want to contemplate the types of agreements to offer and at what price.  For more information be sure to read Part 4.

    Already have a maintenance agreement program and want to grow it?  Check out our maintenance agreement marketing and management system, Coolfront Agreements at



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