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Maintenance agreements can be a huge asset for your plumbing business, but they’re not really about maintaining equipment at all. So what are they for, and how can you use them to best benefit your business? In episode #363 of Potty Talk, Richard and Laura explain how maintenance agreements are a sales tool.


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3 Golden Nuggets

  1. Maintenance agreements are a sales tool.
  2. They’re for repeat sales opportunities.
  3. Keep it simple


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Show Notes

Maintenance agreements are a sales tool

Funny enough, maintenance agreements are not about maintenance at all. They’re a tool to help you get that initial sale, and what catches people’s attention better than a chance to save money? Offer them reduced prices or a discounted rate for becoming a member. Talk about specifics: this certain job costs $500, but for members, it’ll be $400. Most people don’t care enough about having their equipment maintained, but people are into saving money.

They’re for repeat sales opportunities

Maintenance agreements give you a way back into a customer’s house. You’re going to maintain their equipment at a discount, maybe a twice-yearly water heater flush or whole house inspection—and that routine servicing means you’re seeing them often. It’s a great way to build a lasting relationship with a customer; you become their go-to person. And you’ll have that relationship with Mrs. Jones as long as she has plumbing. During that whole house inspection, you might find things that need attention. Let her know what’s going on (no scare tactics, please!), and if she decides to have it fixed, you’ve just got yourself another job. In our experience, 30-40% of people agreed to our recommendations, such as having toilets reset or emergency stops replaced. That’s potential disasters averted, customers happy, and more money in your pocket.

Keep it simple

We tend to make things too complicated. Your maintenance agreements shouldn’t be a long, legal thing where you need three attorneys to draft it and where customers need their own attorney to understand it. If you get wrapped up in that, it starts sounding like fine print, and people don’t trust that. Keep it simple, and you’ll sell more. Resist the temptation to copy airlines and their different levels of precious metals (Gold! Silver! Platinum!). It’ll freak out your customer; people tend to say an automatic ‘no’ when it gets too complicated. Be sure to set the right price for maintenance agreements. Tag your members on your field management software so you can easily send them extra discounts—and make them feel like VIPs. You might even consider sharing the monthly fees you bring in with your employees, incentivizing them to sell more.

Richard’s Call to Action

If you want to learn more about numbers that matter and how to best run your plumbing business, why not schedule a free 30-min strategy call with us? Let’s talk about your goals and where you want to be this time next year, and we’ll help you create a path to make that happen. Schedule your free strategy call here today!