How Many of Your Appointments Are for Service Agreements?

In the March 2023 Snapshot Survey, we asked contractors about their service agreement programs. Here’s one survey question and its results from the summary report, which is available in it’s entirety by Contractor University members here.

What Percentage of Appointments Throughout the Year Are Service Agreement Appointments?

Offering service agreements to customers provides contractors with two main guarantees throughout the year: work and revenue. In our survey, the largest group of contractors (23%) found that 21-30 percent of their appointments were from service agreements, while 21% similarly noted that 41-50 percent of their calendar year was booked up with service agreement customers. Additionally, 18% of those surveyed said that more than half of their appointments in a year were guaranteed service agreement appointments.

Given the extreme seasonality of our industry, contractors who are able to leverage service agreement programs to schedule jobs and labor throughout the year are in a great position to schedule revenue throughout the year as well – while eliminating some of the seasonal ebbs and flows (including hiring and firing) that impact many service businesses.

Here’s what an HVAC contractor from Arkansas:

At the end of each service call, the customer is offered a discount on the repair for additionally purchasing the maintenance agreement and becoming a member, therefore getting the member price on the repair.”

Contractor University members can click here to access all of our resources on service agreements.