Service contracts - template and pricing?

[CopperTone]

I've been wanting to get into selling service/maintenance contracts to primarily residential customers. Does anyone have a service contract they will share that they use?
Also, what about pricing for the yearly contract and how comprehensive is the maintenance/inspections for that price?
I'm just looking for some pointers from those who are well versed in this.
thanks

 

[adamants]

me too

me too

mee too, if anyone can help?

 

[petersonra]

just curious. what HO would buy an electrical service contract? many go years between times they need an electrician.

 

[ultramegabob]

i have done electrical work for service contract companies, they make a service agreement with the customer and they hire contractors from all trades to do the work at a pre-approved price. to me, the paperwork and overall hassle isnt worth it, and the homeowner is always trying to get more than the contract company is under contract to take care of, or the project is a bigger deal and you have to get approval, just alot of run-around....

 

[satcom]

i have done electrical work for service contract companies, they make a service agreement with the customer and they hire contractors from all trades to do the work at a pre-approved price. to me, the paperwork and overall hassle isnt worth it, and the homeowner is always trying to get more than the contract company is under contract to take care of, or the project is a bigger deal and you have to get approval, just alot of run-around....

I take it your talking about the companies that contract on a national basis, and then sub out to EC willing to do it for the cheapest price, we had a hotel that paid one of the national companies $42 each to have fixtures they supplied changed out, they found some electrician willing to do it for $2 each
we call these operations contract boiler rooms, they are on the phone all day looking for green guys willing to work for nothing, while they rake in the heavy money.

 

[petersonra]

I take it your talking about the companies that contract on a national basis, and then sub out to EC willing to do it for the cheapest price, we had a hotel that paid one of the national companies $42 each to have fixtures they supplied changed out, they found some electrician willing to do it for $2 each.

what kind of fixtures could you change out for $2? gotta be just labor. even then, you have to to be able to do 20 an hour to make it worth the effort.

Is there any way anyone could do a fixture swap in 3 minutes?

Or did you mean $20?

 

[CopperTone]

I'm talking about selling directly to homeowners a yearly service contract or multi year with a yearly fee and inspection of the equipment. test and inspect - Check connections in panel, trip gfi's, reset, make recommendations, etc, etc, . It works well in slow times to fill a schedule, and it is another source of income, and it also gives a people a contact for emergency work - you almost already have the job because of your ongoing relationship with your customer.
I admit this isn't for everyone but don't think people won't buy this - many do. A lot of EC's don't want to deal with this stuff either, but it can generate a lot more work and grow your customer base.
You do have to be specific in what the service contract covers and what it does not. This works well in better neighborhoods and towns where people don't mind at all paying for great service and piece of mind.

I though someone out there might work somewhere where they do this.

Subbing out the service work from a national company usually doesn't make money.

 

[westelectric]

I've heard of one company advertising a house electrical survey. They will give a survey of the whole house, free or charge I'm not sure. Give the ho a list of things they found wrong, unsafe etc. Give the ho a price to repair all the things they listed. Once that whole step is complete, they will then set up some kind of maintenance agreement with the ho. The ec now feels confident that most of the electrical system is up to par and is willing to offer this agreement with the confidence that they will not get too many calls. I think without doing some kind of initial survey and adressing all the problems found, you may lose out in the end. I personally stay away from resi. maint. contracts. Too many--How come thats not covered?

 

[Sparky555]

I suspect a well run system with service contracts involves:

Selling them at a low rate.
Getting your tech/salesperson in front of the client twice a year during schedule gaps.
Selling $4-500 per visit.

Without the full system and trained salespeople you'll spin your wheels.

Dave

 

[petersonra]

I suspect a well run system with service contracts involves:

Selling them at a low rate.
Getting your tech/salesperson in front of the client twice a year during schedule gaps.
Selling $4-500 per visit.

Without the full system and trained salespeople you'll spin your wheels.

Dave

what exactly are you selling though? if all the customer is getting is an inspection designed to turn up things the customer has to pay to fix, just where is the benefit to the customer?

i guarantee the salesmen will find all kinds of things that "need" fixing, especially if they are on commission of some sort.