maintenance/service contracts

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sparky76

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Anybody do them and if so how did you get/solicit them. How do you bid them if you' re not necessarily doing the same thing everytime? and what do you charge? Thanks in advance for input.
 
We have maintenance service contracts for switchgear maintenance and testing, IR contracts, battery service contracts, generator contracts.

Word of mouth, and prices vary with the type, duration, and way too many variables to count.
 
The only maint. contracts we do are with our generators. 90% of those come from our own customer sales, but we get some from generator owners that hear about us through advertising or current customers.
 
How about lighting and other routine electrical maintenance?

How about lighting and other routine electrical maintenance?

Hi Sparky,
I'm interested in maintenance contracts too, but have also had a tough time finding info on what to charge. I was thinking about office buildings that don't have a building engineer on staff and also retail and restaurants. It seems like a viable service to come by once a month and replace the burned out lamps, test the emergency fixtures, gfi's and exit lights, and take care of anything else they need.
Like you, though, I'm not sure of the details. Anyone have any experience in this area? Thanks.
 
A lot of people have been burned by these kind of contracts.

Contractors think it is something they can put their guys to work on when they have nothing better to do, but the nothing better to do seems to not come along so they end up doing it on OT.

If you are going to do it, make it a serious sideline, not something that you hope will fill in someone's day.

Its a valuable service to someone who does not have regular maintenance people.

I would suggest pricing it up like any other service. Figure out what it is going to cost, and charge more than that.
 
We have maintenance contracts for lighting, and general electrical repairs, in high rise offices, and office parks, we also have contracts, for tennant fit up work.
 
The last lighting/maint. specialist I worked with charged a token monthly, not enough to pay anyone's salary. The only money he made was on material. He got mad if something wasn't replaced after a service call.

I believe, this strategy allowed him to undercut more established competition, but could not sustain much of an overhead or salary for his workers. I was the only documented or licensed JW on the payroll, until he asked me to take a pay cut, then he had none.
 
That's what I was wondering about.....

That's what I was wondering about.....

I was trying to figure out if the contracts normally specify routine, scheduled visits (1 hour per month or something like that), or if they just lock in a discounted hourly rate for any work requested.
It seems like regular visits might be a better money maker. Then if they need more work, the contractor could give a legitimate quote on it.
 
sparky76 said:
Anybody do them and if so how did you get/solicit them. How do you bid them if you' re not necessarily doing the same thing everytime? and what do you charge? Thanks in advance for input.
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our business is not well suited for maintenance contracts.
Those of us with generator maintenance contracts know that they are not very profitable.
I would suggest that you get your good customers set up to fax work orders to your shop when they need something done. Make it very easy for them. Know what your "break even rate" is and factor your volume and margins accordingly.
This is usually a situation where the labor might be a few bucks cheaper but you can well make it up on material mark up to maintain your profits.
Dont forget the costs collecting these type of accounts in your program.

Good Luck
 
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