How to Sell A HVAC Maintenance Contract
Posted by Steven Teneriello on Tue, Jul 20, 2010 @ 07:27 PM
In the HVAC business as with any industry it is much more expensive to try and generate new clients than it is to service repeat clients. Building up trust with a customer is a good way to ensure that you have ongoing sales without having to spend more on advertising. If you are able to set the majority of your customers up with an HVAC maintenance contract, then you will realize greater profits in the long run.
Some customers are reluctant to sign a service contract. They may be aware of the fact that many industries offer extended warranties and similar products. The electronics industry in particular is known for having extended service warranties that can be expensive and offer little for the customer. Many consumer guides have warned people against purchasing them.
It is therefore important to position an HVAC maintenance contract in a different way. The equipment is certainly different, and it is necessary to maintain it. Systems will also run more efficiently when they are properly maintained. Let customers know that maintenance is something that they are going to have to do on their systems and it will make sense if you offer them the peace of mind of having an existing maintenance contract so that they can budget their expenses and save.
If you consider what a company makes on an installation, it does not offer that much margin. The real money comes when long-term servicing is purchased. In order to get people to buy into the concept of having an HVAC maintenance contract, it makes sense to package it together with an initial installation.
It is advantageous to give incentives to salespeople for selling ongoing maintenance contracts. They may sometimes be tempted to simply sell the initial service. By offering a lower amount they hope that they can sell the client. If they are motivated to package the two together, they will push harder for the bigger sale.
Something that might make sense is to have a customer sign the refusal for a maintenance contract. This is something that is often done in the financial industry, and it is an excellent psychological tool. It gives added value perception to the service contract if you have recommended it and the client has to sign something that says that they understand that they are passing up having ongoing service at a negotiated rate.
When you sell these maintenance contracts, you remain in constant contact with your client. And one way to that is with a social media strategy for your HVAC business. It is important to service them immediately and keep these clients happy. Not only do they provide ongoing revenue and stabilize the revenue stream, but they will also provide referrals to others when they get good service. That is free advertising, and the people that they refer are more likely to buy an ongoing maintenance contract as that client did.
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