Service Agreement

[Sanke]

Hi all
I was asked this morning by a customer if I ran a "monthly paid service agreement" Similar to BG etc Do any of you run this type of scheme and if so does it work well ?? Their idea was to pay monthly then have boiler etc serviced annually

 

[Plumbstar Tom]

have a friend who checks all gas appliances for a yearly fee, cant recall the amount but it was dependant on cooker, boiler, fire

worked out to be a nice £25k earner minus overheads

Its just a case of keeping on top of payments to insure they continue to pay you

 

[Sanke]

Hi Tom
Yes that is the idea For a set fee that they pay monthly they can have boiler serviced heating checked etc

 

[kirkgas]

my opinion on this is that you either need massive volume of properties to bank all the money then pay for the bits that you need and hopefully make a profit (did a lot of social housing contracts some made a fortune, some lost a fortune, you need to be strong to keep paying out on the bad ones and not let quality suffer by cutting standards, anyone care to suggest companies that would stoop so low) or have the T&C's so tight that nothing is covered (anyone care to suggest companies that would stoop so low)we looked after 14,000+ properties and as i said depending on area/appliances some made us 30% profit and some lost us 30%, overall head office took the good with the bad as the overall annual sales for the gas dept, was in excess of £1.25million, and the associated works made up for shortfalls, but i dont see how i could make any money on it with 30-40 properties, there is no way an annual fee can sustain such a contract if you are buying parts for appliances unless the fee was c£500 and you wont get anyone to pay that when they can get cover (good cover when you dont need it, and no cover when you try to claim) for c£15 per month

 

[Plumbstar Tom]

people do prefer the local tradesman to the big wig companies sometimes

Nothing wrong with advising them that the annual service does not cover parts as it cant really be expected to when you could be hit with A PCB on the monday and then a heat exchanger on the tuesday

 

[Sanke]

No I was thinking really simple Basically just paying for an annual service in instalments rather than in one go Throughout the year if anything went wrong I would then be at the top of the list to fix Also could be good for referrals

 

[Billy Bob Bob]

i charge £140 a year but only on boilers i have fitted that way i can control costs...sort off

 

[Sanke]

Hi Mark
I would be grateful if you could pm me any details about your agreement
Thanks

 

[obseen16]

yeah the company i work for has a service package, we only started it in november last year, so far we only have about ten customers who pay an annual fee (takes out the hassle of making sure monthly payments are made) but its just spreading the word think a few of the lads up my way are doing similar packages. once the numbers go up it will produce a nice bit of earnings providing not to many boilers go down.