How to Manage Your HVAC Service Agreements

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HVAC service agreement management is the key to getting predictable, steady cash flow for your business.

But how to manage service agreements? And how to convince clients to get them?

Read below to find out everything you need to know about HVAC service agreements and how to manage them effectively:

How do I sell my HVAC service agreement?

An HVAC service agreement is a contract you make with the client to check-up periodically on their heating or AC units throughout the year. The number of check-ups varies from bimonthly to every 6 months.

Some companies offer basic coverage for under $200 (which just covers check-ups), while others offer discounted rates for any needed repairs on the spot.

But how do you convince your client to sign a service agreement? Well, the answer is simple really: you have to convince them that paying monthly for routine check-ups costs less than a surprise repair.

Routine maintenance guarantees HVAC units live longer and as such, families with service agreements will have fewer issues with unexpected repairs that break the bank. And if a unit is showing signs of decay, the technician will alert them beforehand so they can save money.

So, in a nutshell: your technicians can tell clients that service agreements are a form of “insurance” for check-ups with a small monthly fee that’s lower than an unexpected, costly repair.

How do I manage my HVAC service agreements?

To manage service agreements efficiently, you need to have all of them recorded in a single place.

Many HVAC companies anger clients and cause disagreements because they do not provide the with incorrect invoices. A common problem is sending an invoice to a client for a repair that should be covered by the service agreement, for example.

That’s why you need a profile on each client, the equipment they have, and the terms of the service agreement they signed.

Before you send any technician to a client, you need to check their tab and see if the service agreement is active, as well as what’s covered by the contract.

HVAC service agreement software

Managing service agreements is easy with HVAC software. You have a dashboard with a profile on each client, as well as a panorama on any service agreements that need to be renewed.

You can also check with a single click any pendant tune-ups and arrange accordingly technician visits.

Find out more about HVAC software for managing service agreements

Are HVAC service contracts worth it?

Yes, of course. The main benefit of a service contract is recurring cash flow, as well as making your operations easier.

With service agreements, you can book tune-ups periodically, instead of having to deal with a lot of clients “out of the blue” demanding urgent repairs.

The more clients you have on service agreements, the better. You can space out technician visits instead of having to deal with the crunch of summer (for ACs) and winter (for heaters) when suddenly you get a lot of services.

With service contracts, you can do tune-ups during fall or spring, which for many HVAC companies are slow for business.

So, in a nutshell: service contracts make booking technician visits easier, as well as provide predictable, recurring cash flow.

Check out the pricing for HVAC management software

What should be included in a service agreement?

You should include in the HVAC service agreement all the details on precisely what will be covered, as well as how it’ll be covered.

Since this is a contract, after all, paying attention to every single term you agree to is important to not have any disagreements (or even lawsuits) in the future.

Here’s what you should include in the service agreement:

  • Components that will be serviced: be sure to include the components of the equipment you sell and nothing from third-parties
  • Visits: write down precisely how many visits (tri-monthly, biannual or annual) your technicians will make to the client’s home
  • Tasks to be performed: detail what the technician should do precisely (change the filter, check wear and tear, evaluate fan) to avoid any setbacks with clients

Manage service agreements, payments, and visits with P3 HVAC Software. Click on the link below to book a free demo with one of our experts:

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