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service agreement template

Plumbing Service Agreement Template (Free Download)

How to Keep Your Revenues Rising With A Plumbing Service Agreement (FREE Template Included)

A plumbing service agreement is a tool that can offer consumers peace of mind and keep their plumbing systems in pristine working order. It's also a tool that can keep plumbing professionals receiving regular work, consistent invoices, and higher revenue growth. Plumbing service agreements are being offered by many plumbing businesses. They are service agreements that involve regular inspections of a client's intricate plumbing system as well as other regular service benefits. 

People are buying more homes in today's strong economy. The plumbing industry is growing faster than many other home services industries. Today's homeowners are working many more hours than their counterparts 60 years ago. In fact, the Bureau of Labor Statistics notes that the productivity of American workers has increase 400%compared to the same worker in 1950. In other words, a worker in 1950 could perform a quarter of the workload in 1950 to afford the same standard of living to today's worker. 

Americans are busy. When an emergency happens, the average homeowner has trouble finding the time to readjust their schedule to deal with a plumbing mishap. This is your opportunity as a plumbing small business to develop a plumbing service maintenance plan so you can grow your business and your customers can keep their lives running smoothly. 

What makes up a great plumbing service plan?

A proper plumbing service plan is built with two facets in mind. 

First, it includes annual inspections of the entire plumbing system: the water heater, drains, sinks, faucets and toilets. Just like the maintenance of a individual's car, the entire plumbing system is going to need regular maintenance and tune ups throughout the course of its life. 

Second, a plumbing service plan should open up the opportunity to discounts and exclusive benefits that are only available through the agreement of the plan. This is an opportunity to reward your customer by sticking with your business in a long-term agreement. Furthermore, for your business, preventative care of the system always costs less than reactive repair.

What should be included in your plumbing service agreement?

Like mentioned earlier, you should have a detailed schedule of what is going to be offered with the agreement. This should be clearly labeled out so your customer can completely understand what they're getting with the agreement. It's also important for you to draw out what you're going to be held accountable for. When you fulfill on your agreements you build trust. When you build trust you create long term customers who can refer you to further business. Your agreement can and should include:

  • An annual inspection of water heater

  • An annual inspection of faucets 

  • An annual inspection of drains

  • An annual inspection of toilets

  • Unlimited service calls with no trip charge

  • A percent discount on all repairs

  • A percent discount on replacement equipment

  • Priority scheduling as to retain quality assurance 

It's also advantageous to include tiered options for your customers (see template). We recommend three tiered options for your business: an introductory level, intermediate, and premium. This allows you to offer service agreements that have the potential to be higher earning revenue sources.

How does your business benefit from plumbing service agreements?

Your business benefits tremendously from plumbing service agreements. Here are a few ways you'll feel the positive impact on your business:

You'll save time: Everyone knows it's better to plan than to be reactive. A plumbing service plan allows you to schedule your time accordingly for your business. When you have a plan of attack on any project, you'll know a general estimation of the time constraint and what utilities will need work. When you don't have a plan and you're reactive, the flood gates can swing wide open (no pun intended) in what energy and time requirements will be needed in a given job.

You'll generate higher revenue: Having a consistent cash flow can help keep your business afloat for years to come. When you employ a plumbing service plan you create recurring revenue on a monthly, seasonal or yearly basis. You'll have better means of forecasting and meeting projections when you know what contracts will be paid in a given time frame.

You'll be able to scale your business: Making sure you have the optimal level of support is hard to determine when you're conducting your business on a reactive level. When you're waiting for the phone to ring on inbox to fill up with service calls, you cannot determine accurately if you're overstaffed or understaffed. A plumbing service plan allows you to determine what type of manpower you need to keep your business as the go-to business in the community. 

You'll build trust in the community: One of the most important elements of a striving business (regardless of the industry) is the ability to build trust with the community. When you have an optimal plumbing service plan you put your face and the face of your business in front of the community. From there, you have the responsibility to offer and perform the best service possible. A service that builds trust and outperforms the competition. When you customers see that, you build trust. When you build trust, you can build automated referral machines out of your current customers. 

Maybe you've been a staple business in the community for many decades. Perhaps you're the "new kid on the block" looking to take your claim of the business in the community. Either way, your key to competitive dominance is by building trust in the community and helping make the lives of your customers run smoothly. You can do this by securing plumbing service agreements. 

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