More Profits When Service Agreements A Priority - Warm Thoughts Communications
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More Profits When Service Agreements A Priority

Posted on May 4, 2015

Sure, many HVAC businesses offer their customers a service agreement.

Unfortunately, though, most “offer” rather than “prioritize” these agreements.

By not actively pursuing a robust service agreement strategy, these businesses miss out on the single most important vehicle to build a long-term relationship with their customers

Consider these truths:

You have to admit—those are a lot of good reasons to make service agreements a priority within your business model. And how difficult is it, really, to make them more noticeable and attractive to your customers? It’s the easiest work you will ever do to make such an attractive return on your investment!

Your customers benefit greatly, too

Basic sales experience tells you that most effective offers benefit everyone in the deal.

So when marketing your service agreement plans to your customers, provide information such as this:

According to research conducted by Decision Analyst, Inc., in any given year 31% of homeowners experienced an emergency breakdown of their heating or cooling system.

But the emergency breakdown among homeowners without a service agreement was 40%—while those with a service agreement were only 14%.

Armed with facts such as these, you can easily sell your homeowners on the benefits of a low-cost “insurance policy” for avoiding emergency equipment failures during peak seasons. (You can include other angles, of course, such as longer equipment life and lower utility bills.)

But let’s look at even more benefits for you

If for some reason the many points at the start of this article aren’t enough to convince you to sell your service agreements with appropriate gusto and business foresight, let’s wrap up with a few more:

Let’s agree: You need to focus on agreements

Does your company offer service agreements? If not, you need to—now.

If you do have them, is selling them a top priority among your sales staff and technicians? If not, it needs to be—now.

If you have a marketing agency that is helping you in other areas of your messaging to the public, you need to also task it with developing compelling consumer benefits for signing an agreement and communicating those benefits effectively to your customers and new business prospects—now.

Believe me: You will make more profits when you start making service agreements a priority.

Ken Reese

Ken Reese is a Senior Marketing Consultant at Warm Thoughts, with 20 years of experience working in marketing, consulting and business development in the Energy Efficiency, HVAC, Home Performance, Propane, and Fuel Services industries. Ken also serves as the Director of the American Home Comfort Study, a proprietary residential research study licensed from the award-winning market research firm, Decision Analyst. Contact Ken today!

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