Posted by Kindra K.
November 20, 2018
Recurring service agreements are a great new way for you to generate dependable revenue for your business, strengthen your employee relationships, and increase your customer loyalty. They allow you to develop revenue streams to help smooth out those seasonal variations in your business while keeping you well-connected to your best customers.
HVAC, plumbing, and electrical companies have been using recurring service agreements to help grow their business, especially during the times when the incoming calls slow down. Businesses aren’t the only ones that win by offering recurring service agreements. Both your customers and your employees benefit from them too.
Most homeowners don’t realize that HVAC, plumbing and electrical emergencies could be prevented with simple upkeep and continued maintenance. By participating in recurring service agreements, your customers can save themselves from the unnecessary stress that comes from a pipe bursting, or an ac unit crashing in the heat of summer.
Value of home
The longer your customers have lived in their home, the more wear and tear they’re doing. By automatically maintaining the infrastructure of their home on a regular basis they will be able to increase their resale value without having to do any major work.
Recurring service agreements are often offered at a discounted rate, but that’s not the only way your customers save. By regularly having preventative work done on the foundation and utilities of a home, your customers will avoid unplanned emergency expenses. Plus - they save on utilities when they keep their plumbing, electricity, and HVAC unit running efficiently.
Most long-term warranties require frequent maintenance in order to keep their validation. By participating in a service agreement, your customer will put that maintenance on auto-drive.
Quick and reliable jobs
Because recurring service agreement jobs are frequent your employees know what to expect. These quick, predictable jobs make for a pleasant experience for both your customer and your employee. They know that they’re doing what’s right for the customer and can always leave on a positive note.
Not only are the jobs easier, but they’re consistent. Sometimes, it’s hard for your employees to feel valued during the slow season when there aren’t as many jobs to keep them busy. Recurring service agreements allow them to feel secure in their job, knowing they will always have work to be done.
Consistent jobs mean a reliable paycheck, but that’s not the only way your employees can benefit financially from recurring service agreements. Most companies that offer recurring service agreements also incentivize their employees to sell them to new customers, for a commission. This allows your employees to feel even more involved in the benefits of recurring service agreements and driven to increase the number of contracts you have.
In any industry, businesses have to deal with financial ebbs and flows of their market. That’s why money management has become such an important focus for maintaining a healthy and stable company. Recurring service agreements allow businesses to have dependable income throughout the year, giving some relief during those slower seasons, and making it possible for business owners to continuously invest in their growth.
We cannot stress enough how valuable recurring service agreements are to your customers. By maintaining the structure of their home, providing a positive customer experience, and saving them money, you’re building a trusting relationship that’s sure to bring reviews or referrals.
Recurring service agreements can help increase the value of your customer list when you're ready to retire and sell your company. A list full of recurring service agreement customers is far more valuable to a potential buyer than a long list on one-time customers.
In order to reap the most benefit of service agreements for everyone you want to make sure you’re keeping your schedule organized, your payments automated, and your communication streamlined. Learn how you can start automating service agreements with Housecall Pro here.
Housecall Pro is rated the #1 software to run your HVAC, Plumbing, Electrical, Carpet Cleaning and other home service businesses. Our features allow you to schedule and dispatch jobs, get booked online, send invoice and receive payment within minutes whether if you are in the office or out in the field. This comprehensive software can help you grow revenue by 30% in one year and save up to 500 hours a year. Join all the other successful home service businesses who have already started and try Housecall Pro for 14 days free today.