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Service Agreements

Sep 30, 2024

Building a Solid Service Agreement Base

In contrast to an insurance policy or extended warranty, a service agreement is a pre-purchased, discounted maintenance agreement over a period of time to help increase business during slower times of the year.

Some HVAC companies think service agreements are just wins for the customer. In actuality though, both the business and the consumer win from them.

While the obvious cost discounts that a consumer receives is their biggest benefit, on the company side, employees also win. That’s because selling or extending a service agreement can result in them getting incentives, in the form of a monetary spiff or other bonus. While perhaps not a huge dollar amount per agreement, it can add up with volume.

In addition, a company that provides service agreements can enjoy a greater cash flow into their business. That’s because service agreements are prepaid or paid in increments, which means guaranteed revenue always coming in. Even more of an inventive, by offering a service agreement means you are keeping your techs and other employees busy (and employed), even during down times. That translates into less likelihood of losing good staff.

Lastly with a big purchase like of an HVAC product, offering a service agreement means a business can potentially stay top-of-mind with customers and a relationship can continue, and not just a one and done transaction. Service agreements increase the lifetime value of customers.

While some HVAC companies are afraid of service agreements simply because they are afraid to have to manage them, HVAC Business Solutions offers a tool that works great to facilitate the management that needs to go into them. That’s because P3 offers a report that allows owners and managers to see exactly how many service agreements are sold, when they are coming due, when they are not renewed––all in one single space. With P3, a business can always keep track, so they don’t feel like they are taking advantage of customers and at the same time not allow customers to take advantage of them.

Customer Reviews

We value feedback from the businesses we serve. Here’s what our users have to say.

Logo of Jack Gordon & Sons

HVAC Business Solutions has really helped us get organized with scheduling and dispatch and consistent. Our techs and the people in the office love how simple it is to use and our customers appreciate the professional level of service we are able to deliver using the system. Anytime we need assistance, Meghan and Jason are always pleasant and helpful when we call. P3 HVAC Solutions is a 10 out of 10.

Aaron Bonin
Jack Gordon & Sons Inc.
Logo of superior air heating & air conditioning

I first heard about HVAC Business Solution’s service software in a hvac-talk.com group for contractors and decided to give it a try based upon the feedback from other owners. I am glad I did! These guys solicit input from their customers and then take action which really sets them aside from the competition. They are very innovative and are constantly making what is already good even better. In the short period of time I have been on P3 HVAC Solutions, they have added a lot of new features and they have never charged me a dime more for them.

Larry Kapigian
Superior Air Heating & Air Conditioning
Logo of Bob's heating & air conditioning

We have been using flat rate pricing provided by HVAC Business Solutions for about 10 years now and it’s been a positive, profitable decision. The technology of being able to adjust pricing, update and customize individual pages, add new products as needed from their website are all phenomenal features. Creating flat rate pricing can be a time consuming and daunting task, but HVAC Business Solutions makes it easy. We look forward to a long lasting relationship between Bob’s Heating & HVAC Business Solutions.

Melissa Olsen
Bob's Heating & Air Conditioning

Best change we made in 40 years in business. Literally reduced hundreds of hours work inputting services tickets and invoices into a program.

EZ Air
Harvey Shell
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