Discuss Boiler service contract in the Central Heating Forum area at PlumbersForums.net
Have a listen to Wayne Bettess’s podcastHi all,
I have my own business and am looking to go into selling boiler cover where I'd charge on a monthly basis. Like BG or Homeserve but on a much smaller scale.
Has anyone on here tried this?
Any advise would be appreciated
Thanks for your response Rob. I appreciate what you're saying and I know it is a gamble. I might have a month where I'm getting 20-30 breakdowns where parts are required, or I might get a month where only 5 breakdowns require a part. Like I said, it is a gambleAbsolute minefield, what if your 1st three customers need new pcb, or hex you will be £2000 down straight away and your getting £15 per month like BG...then there is the nightmare of your van stock
to fill a transit with regular parts used can get up to £10,000...but maybe I have missed something...you will need a big capital investement
I presume that you will service every system you take on before accepting them into your scheme and charge up front for the initial service..and list any defects before proceeding with any contractual arrangementsThanks for your response Rob. I appreciate what you're saying and I know it is a gamble. I might have a month where I'm getting 20-30 breakdowns where parts are required, or I might get a month where only 5 breakdowns require a part. Like I said, it is a gamble
YesI presume that you will service every system you take on before accepting them into your scheme and charge up front for the initial service..and list any defects before proceeding with any contractual arrangements
anyway ...thats what I would do
Rob Foster aka centralheatking
and paid up front before your scheme starts ..just like British Gas etc etc...I think you might do well if you organise things wellYes
A system check will be carried
and paid up front before your scheme starts ..just like British Gas etc etc...I think you might do well if you organise things well
or just loose your house wife etc if you get it wrong ...plenty of
fellas gone down both routes...I am a lucky man after 40+ years
and 3 wives My business is solid and bouncing...but seriously
do be carefull. Rob Foster aka centralheatking
I have no idea either just email...we are a small but happy set upRob. Sorry, but can you start a conversation with me please? I don't seem to be able to do that!! David
Now Raj you are entering a specific area of commercial business which from my point of view conflicts with the protcols on UKPF ..Api 20o6Any suggestions for marketing? I know you got your google ad words and all that. I was thinking direct mail marketing following up with a phone call.
Thanks for the advice Brambles.Raj,
A few pointers, generally gleaned from maintenance contracts:
You want five star customers, who value a heating system that is completely trouble free and dependable.
You need a business model that is robust and tested to prove it works.
You understand the technical side of the equipment you are going to maintain inside out to a high level of detail.
You don’t take risks, you price all the risk into the business model. If you want a long term sustainable maintenance business, all the risks will at some point come to fruition.
If you maintain an installation long term, any warranty issues that are not honoured by the equipment manufacturer, the customer will look to you to resolve.
From the above, to capture quality customers our strategy was to build the maintenance side from our new (or major renovations) installations business. That has worked, but has been slow to grow.
Generally a maintenance model functions around the capital cost of the equipment, it’s expected life and the cost of
expected spares ( 1 year, 3 year, 6 year, 10 year et al). With gas, that is a problem because the cost of spares is generally disproportionate to the capital cost of the equipment. A model for oil fired is much easier - because the spares are similarly priced, fir an installation of a much higher capital value.
Where we chose to go was niche, competing against the equipment manufacturers ( who don’t - or we think don’t - want the hassle) with high capital cost installations. It was bery hard work to make the business work for the first two to three years.
With respect to British Gas - and I guess that I will now be ridiculed - when I compare them to my business model, their prices for a basic maintenance package are within plus or minus 10% of mine. BUT, they have the cream of the Customer market - the people who don’t want to have any risk and are willing to pay for that level of comfort / confidence.
The point of all this is : Before you even begin to advertise, you need to know the segment of the customers in the market you want to win over to your business. Do you want to poach from British Gas? Or customers who don’t already have cover? Who are the highest risk to your business?
We spent months going through these scenarios - frustrating, but on reflection time well spent.
Api 2006 take on usually 3 projects each year , especially when one of our babies has fledged ...this makes some room...for the next...I am sorryWould you be able to give some advice via email or phone call?
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