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Signatory service agreement

hello Michael here with success for others and today I want to talk about the basic reasons why maintenance agreements are so critical to your business and listen to any in-home service business you know cash flow is king right I mean at the end of the day it really comes down to you know cash in our position of cash to make sure that the company is doing everything that needs to do and providing for its employees as well as providing for its customers and maintenance agreements have the biggest impact on a company's cash position then quite frankly anything else that we can offer and yet as I travel around I noticed so many service companies that do not offer or do not believe in maintenance agreement cut and maintenance agreement sales and it just kind of blows my mind and some of the excuses I've heard are well they're just a loss leader and you know there's no money to be made on maintenance agreements and we don't have the time in the fall and the spring to get to all of these hundreds if not thousands of customers we just don't have that number of employees to support that and you know at the end of the day all of which of those are just excuses because when it's time when it really comes down to time to sell your business or an exit strategy or anything else you're really evaluating what your business is worth maintenance agreement contracts are probably one of the biggest things that an investor or a potential buyer is even going to look at and really going to probably ask in the first I don't know four sentences of questions that they ask the business owner and the reason for that is let's face it we can get the van's we can hire employees the real thing that we're buying when we purchase an HVAC company or we'll evaluate an HVAC company is the worth of the customer base and if you don't have customers on a maintenance agreement contract weather annually or biannually and don't have that customer locked up well at the end of the day you just have a direct mail list you just have a phone list you really don't have a loyal customer base and those customers can go anywhere and it's in their fate not in yours so you know the biggest reason why maintenance agreements are critical to your business is it creates customer loyalty and today's business and in the environment of today's business customer satisfaction is pretty much deemed useless I mean let's face it if you are not making your customers happy or if your employees are not out at a customer's home making them happy then they're not going to call you again and you're gonna lose them as a customer so customer satisfaction although important not critical it's a minimum expectation in today's business world the real goal is customer loyalty how do you keep the customers in your database coming back to you year after year after year so that you can service not only their immediate needs but also their future needs as well and that's what leads to consistent residual income and so here here's something to think about something to look at for all of the naysayers or for all the people out there that don't believe that maintenance agreements are the right thing for them for their company or heaven forbid for their customers first of all your customers benefit from a maintenance agreement because for a number of reasons but the biggest being to ensure their health and safety right to make sure that this system is is providing the healthiest safety safety environments for them in their family because we're dealing with a lot of uncontrollable things here and a lot of dangerous components so you know that is probably the biggest thing is just a health and safety factor but then on addition to that let's just look at you know indoor air quality and comfort and utility costs and all the other reasons why people invest in HVAC services products and solutions so maintenance agreements our one men are required by every manufacturer to uphold their warranty so that's important in the customer too important to ensure that they're not overpaying the utility company month in and month out year in and year out three ensures that the customers is has a safe operating system for them and their family of their home and number four really designed to you know reduce noise and just give the customer a the best level of comfort they can in their home and let's face it you know people will soon vest money in your organization or in your services if you can increase their comfort moreso than they'll invest if you can reduce your utility cost so that's a little factoid for you that's that's that's kind of a strong and something that you should really pay attention on when assessing a customer's needs so let's break it down to again I don't know the size of every company that's watching this right now so this is just an introduction video this is a very elementary video we'll continue to build upon this foundation in the future but today let's just look at a small small organization and we'll just look at one technician now if you have more than one technician that's fine just multiply these numbers by the number of technicians you have so one technician let's just say runs three calls a day on average throughout the year so day in day out year in year out they're running an average of three calls a day times five days a week that would be Monday through Friday that's gonna mean that that service technician or one service technician can be in fifteen different homes every single week and that is a very low number I mean I know a lot of you watching this video are like wow three calls a day I wish right I mean this is extremely conservative so if you take that 15 calls a week and you multiply that by 50 weeks that's gonna give you 750 opportunities in a year per technician so that's per tack so if you have two technicians then obviously you'd be in 1500 homes minimum a year now let's just look at mean sales is nothing more than a numbers game right I mean it's just a matter of of numbers so if you were to sign up five out of ten people who didn't currently have a maintenance program onto a maintenance program that your company offered and that would allow you access to their home and to that customers equipment twice a year and that would be a 50% closing or acquisition rate right that's fifty percent closer and five out of ten so that would be three hundred and seventy five maintenance agreements per technician per year at a fifty percent closing ratio now if you sell a maintenance agreement for somewhere around I don't know what I'm just using math here just to use it as an example whatever your price is your price is some people charge as little as $99 a year and other people charge as much as $400 a year so let's just find something in the middle and say it's a hundred and ninety five dollars a year times those three hundred and seventy five opportunities that you converted that would actually translate into revenue or into hard cash for your company of seventy three thousand one hundred and twenty five dollars of cash per year just from one technician so again if you have three technicians five technicians twenty technicians just multiply that number by however many technicians you have and it will give you the opportunity that maintenance agreements can bring to your business from a revenue standpoint now revenue cash is king right I mean at the end of the day an extra seventy three thousand dollars a year on a small organization is gonna have a huge impact on how that company operates because let's face it we all have peaks and valleys of business you have the hot season the cold season you know there's there's a slow seasons in between where mother nature may not bless us with the phone ringing off the hook and what are you doing in that time well you can be running maintenance agreements now here's the misconception of maintenance agreements you're not just going to the house to blow off and equipment that is just you know that's what most people think well I'm gonna go and test the equipment write it up and leave and then hopefully you know you know we'll see whatever we can see the whole point of getting into a house twice a year the same house again and again again first and foremost is to build that relationship with that customer to build that loyalty and that top-of-mind awareness that we all you know spend tens if not hundreds of thousands of dollars a year on it all organizations already so that is built in with maintenance agreements you're there you're top of mind awareness people think about you when it happens and you've really gotten that loyalty but on the other side of that as well is when you go into a maintenance eighty percent of your focus should be on communicating with the customer and identifying what is it that their goals are what are their needs what are their wants one of the desires and how can you help or how can certain products that you have in your arsenal or in your tool bag or in your service van help them accomplish those goals and so the real reason why we go on maintenance agreements is not only to ensure the safety and make sure the existing equipment is operating within manufacturer specifications but more importantly to identify additional opportunities that we can help this customer achieve additional goals because let's face it most customers don't know that the comfort problems that they've experienced in their house for the last five years or ten years or however long they've been in the house can be solved and today's technician is so highly trained and so highly skilled that they have the air flow knowledge the diagnostic knowledge to really have a positive impact on those comfort challenges throughout the house they also have the knowledge of the different accessories and different things out there to help protect that customers equipment as well as their their family and their home and we'll just kneel float switches are a great example of that surge protectors you know humidifiers dehumidifiers air purification systems all of these things that our customers can be benefiting from this is the opportunity where we can identify those needs educate them on different options available to them and then ask them if they'd like to you know explore one of those options further if they'd like to have that upgrade or that accessory added on to their house and the key is is how we translate and how we educate the customer and how we create that emotion when we're in the home and that's something that we would be happy to help you with as well but today's message let's stay focused here is strictly on the opportunity maintenance agreements bring to you your employees and your company and most importantly arguably most importantly the benefits it brings to your customers so if you are not offering made instruments right now to 100% of the clients that you're seeing on a day-to-day week-to-week basis then I strongly encourage you to look into maintenance agreements give us a call reach out let's have a conversation over the phone about this because there's a lot of opportunity I feel that's being missed and a lot of benefits to your company as well as your customer database that we're just walking past right now so that's really it for today's message if you need any help you need any assistance whatsoever with creative made us agreement program or just refining the one that you have please feel free to reach out to us you can reach us at WWDC so the number for others dot-com you can email any one of us at any time of any questions you have or just give us a phone call we would be happy to help if you haven't connected with us on facebook and linkedin yet I encourage you to do so again my name is michael go Durr with success for others and we are happy to help whenever needed thank you so much