With service agreements you win now and you win later.
Last month, I wrote about operating your business as if it were for sale. I encouraged you to plan for the future and maximize the value of your business — whether you actually want to sell it or not. Though there are many different ways to build value and make your business worth more, few can produce the combination of benefits that service agreements can. I never hesitate to mention flat rate as a way to increase the value of your business, as well as your annual profits, but selling service agreements produces that same value-now and value-later opportunity. What’s better, selling service agreements can make your transition to flat rate easier for your technicians and can boost your profits after you have switched. I’ll show you how.
All flat rate manuals have prices. However, I find it easier to show two columns of prices. List one column as the Standard Price, usually the price customers pay for the service listed in the pricing manual. In a column next to that price, list a column of prices that stand out and label it Value Price. Since the value price is noticeably 15 percent to 20 percent lower, customers almost always ask, “How can I get the value price?”