Ask the Experts | Benefits of Offering Service Agreements

It’s been said that service agreements are the life-blood of a contracting business, but what are the benefits that comes with it? On this week’s Ask the Experts call, an HVAC contractor from Michigan asks:

We are taking a look at our service agreement program. One of the first things to come up is if we offer a service agreement at the time of a repair should we still offer the discount on that days repair? If we offer a 20% discount for a $400 repair, what is the benefit of losing the $80 when we still would have gotten that revenue from the service call either way?

Contractor University faculty member Gary Elekes (Founder of iMarket Solutions) and Drew Cameron (President of Flow Odyssey) give their expert advice about why offering service agreements is a benefit to both you and your customers.

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.