How many service agreement customers do you have? If your answer is “none,” you may be missing out on several profitable opportunities for your service and repair business. These days, the money you are leaving on the table at your customers’ homes may just be the amount you need to stay profitable. Or it could be the amount you need for new equipment, trucks, raises to keep good technicians, or any one of a dozen things you could use in your business. Of course, if everything else is satisfactory, you could just keep the extra revenue or spend it.
I want to explain how service agreements actually provide you with more cash from your business — just based on the sales of service agreements — but first I want to review the other benefits service agreements offer. It’s important that you understand how a simple contract with your customers can radically change the way you do business.