Why Maintenance Agreements Matter and How to Make Them Work w/ Ruth King

In this episode, Ruth King shares some of her top insights on how to create a maintenance program if you don't have one. She teaches us to recognize a broken program and fix it. The maintenance component of your company will be the part of your business that allows you to grow your business profitably. If you don't believe in maintenance agreements, your customers won't believe in those maintenance agreements either. Without maintenance agreements, your company will have sharply different slower times and busier times. You'll likely have to pay employees to stay in slow times, and it is not very profitable. Getting a maintenance agreement plan in motion is as easy as getting a maintenance agreement form. Inform your customers of the benefits of maintenance (saving money on utility bills, extending equipment life, etc.). Then, offer it to your customers; you don't even have to make it sound like a sales pitch. Some of your existing customers will almost surely agree to the maintenance agreement. When you enroll someone in a maintenance agreement, it is a good idea to put that money in a separate savings account. The cost of performing the maintenance can be taken out of that savings account, but you would have ideally already set some money aside solely for operation costs. To make sure you're at least breaking even on your maintenance agreements, you must make sure you factor in hourly pay, cost of goods sold, and overhead costs. You can calculate overhead costs by checking the previous year's operating expenses and dividing that by your billable hours. If you are interested in Ruth's maintenance program course, you can find out more HERE . Be sure to use the offer code HVACRS (with all caps) to get a 10% discount on all her products.